Artificial Intelligence in Internal Audit and Risk Assessment

Abstract

In this study, the effects of artificial intelligence applications, which have gained importance recently, on internal audit and risk assessment are analyzed. Internal audit and risk assessment are critical for the early detection of risks that arise in the processes of businesses that are becoming more complex and exposed to external factors due to digitalization. With the internet of things that are generally accepted all over the world, there are significant differences in the way businesses do business. This situation also forces companies to differentiate internal audit and risk assessment, which is a strategic and integral element of management processes. In this context, this study focuses on the challenges and opportunities faced by internal audit and risk assessment because of digitalization, big data analysis and artificial intelligence applications depending on the rapidly developing digital work environments. Accordingly, the study includes in-depth analysis to contribute to the particularly relevant literature and to develop policy recommendations for audit and risk management professionals.

Determinants of adoption of computer‐assisted audit tools and techniques among internal audit units in Ghana

“…This encompasses the use of traditional word processing applications, automated working papers, and covers all other software that auditors use to perform audits (Braun & Davis, 2003; Pedrosa et al, 2020). Currently, new approaches are still of interest to stakeholders with examples such as generalized audit software (GAS), usage on Web 2.0, utility software, customized queries or scripts, audit expert systems, and software tracing and mapping, among others (Kahyaoglu & Aksoy, 2021). The activities that audit specialized software perform include data stratification, data queries, sample extractions, statistical analysis, pivot table creation, missing sequence identification, duplicate transaction identification, cross‐tabulation, and calculations, among others.…”

“…Besides the use of fundamental CAATTs, there is growing interest in the use of AI in auditing (Aksoy & Gurol, 2021; Kahyaoglu & Aksoy, 2021). The use of these technology‐based algorithms dwells heavily on big data to ensure high precision and predictive capabilities.…”