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4-2 Short Paper: Impact of Emerging Technology
ACC 411
Southern New Hampshire University
July 23,2022
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The new technology that has the potential to revolutionize the existing auditing process is
Artificial Intelligence (AI). AI technology can be described as the ability of computer systems to
carry out tasks that are typically associated with human intelligence. The promising technology
fundamentally involves the use of algorithms for the purpose of identifying as well as
comprehending patterns and irregularities within data sets. The innovation of technology,
especially the development of AI technology, can empower professionals in diverse settings to
integrate the technical solution to boost their performance. Velu has identified AI as one of the
main technologies that have the potential to bring about transformation in the business landscape
(Palanivelu & Vasanthi, 2020).
Impact on Auditing
Artificial Intelligence is one of the main technologies that is contributing to a paradigm shift
in auditing activities and procedures. AI technology fundamentally enables auditors to go beyond
the confines of an organization’s data and collect and analyze data at the broader industrial level
(Welcome to icaew.com. ICAEW, 2021). Auditors have the option to leverage AI technology to
conduct data analysis in an in-depth critical manner, thereby locate information outliers. The
strategic application of AI by auditors can expand the level of business insight that they have and
focus on financial reporting risks.
The use of AI in the auditing landscape has contributed to its improved efficiency and
performance of the process. For example, auditors are able to utilize the technology for the
purpose of examining the humongous volume of financial data of business entities in a timely
manner. Moreover, the application of AI minimizes the possibility of errors or mistakes that is
common in the context of manual auditing processes. Khamis has argued that Artificial
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Intelligence technology has simplified the tasks for auditors in terms of decision-making
(Omoteso, 2012). The automation of auditing activities and processes allows auditors to make key
decisions relating to the accurate application of accounting principles by a firm. The benefits of
AI are not restricted to better decision-making; it also adds value in the auditing context by
reducing fees, enhancing audit quality, speeding up the process without compromising it and
reducing the pressure on auditors.
Suggestions for Adaptations
Auditors can adopt a number of measures so that they can leverage AI technology while
carrying out auditing activities and operations. Auditors need to expand their conceptual
understanding of machine learning and deep learning since they serve as the foundation of AI. It
can help to comprehend how algorithms learn to act in an intelligent manner (Meyyappan & Lee,
2011,p .6). Additionally, the specific areas where AI needs to be implemented for automation
need to be identified. Emphasis must be laid on IA-related investment so that a proper IT
ecosystem can be designed that can support the integration of AI in the auditing function.
Auditors need to acquire training so that they can familiarize themselves with the new technology
and identify the exact auditing functions where AI can be leveraged to boost efficiency and
promote the level of accuracy. By taking such measures, auditors will be able to use AI while
conducting auditing operations. a
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References
Meyyappan, G., & Lee, H. S. (2011). The impact of information technology on internal auditing.
African Journal of Business Management, 5(9), 3523-3539.
Omoteso, K. (2012). The application of artificial intelligence in auditing: Looking back to the
future. Expert Systems with Applications, 39(9), 8490-8495.
Palanivelu, V. R., & Vasanthi, B. (2020). Role of artificial intelligence in business transformation.
intelligence, 29(4s), 392-400.
Welcome to icaew.com. ICAEW. (2021). Retrieved July 18, 2022, from https://www.icaew.com/
