Leveraging Artificial Intelligence for Digital Audit Report Automation: A New Paradigm

Description

Page: 71-80

Nhorito Shadreck (Jimu Tafadzwa, Mashinge Jackson Taitikunyepa, Dandira Liberty and Mahachi Thomas)

This study examines the game-changing impact of Artificial Intelligence (AI) on automated digital audit reports, with a specific focus on the ability of AI tools to redefine traditional auditing procedures through enhanced efficiency, accuracy, and capability for real-time decision-making. The study is guided by the Technological Determinism Theory that asserts that technological advancement shapes organizational transformation. The objectives were to analyse AI implementation in audit report preparation, evaluate the impact of AI on audit efficiency and quality, and gauge the attitudinal response of auditors to incorporating AI. A mixed-methods approach was applied, including quantitative questionnaires to 100 Zimbabwean practicing auditors (with 89 valid responses) and qualitative interviews with 10 managers from highly ranked audit firms. Quantitative analysis using descriptive and inferential statistics identified over 72% of participants agreeing on the potential of AI to significantly increase audit effectiveness, with 64% having increased accuracy in identifying errors and anomaly checking. However, resistance was felt driven by fears of job loss and poor digital literacy. Qualitative findings also identified concerns in data integration, ethical issues, and regulatory loopholes. The study recommends investment in AI-capacity building initiatives for auditors, the development of ethical AI audit guidelines, and collaboration between audit firms and regulatory bodies to ensure smooth transition and compliance. Lastly, the study concludes that AI adoption is not only a trend but a new paradigm in auditing, with transformative power if embraced inclusively and responsibly.