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4-2 Short Paper: Impact of Emerging Technology
ACC 411
Southern New Hampshire University
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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
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that Artificial 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. aa
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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/
