THE USE OF ARTIFICIAL INTELLIGENCE IN AUDIT: ADVANTAGES AND CHALLENGES

The article examines the use of artificial intelligence (hereinafter – AI) in auditing activities. Its purpose is to analyse the current state of AI in audit, identify its advantages and challenges, as well as to predict the prospects for the development of audit with AI using. The article reviews sources related to the use of AI in economic activity and auditing, in particular. The historical stages of AI development are considered. The article presents some statistics on the development of AI in Ukraine, namely, the number of AI companies in Central and Eastern Europe (hereinafter – CEE), the industry distribution of AI startups in Ukraine compared to Europe. It is substantiated that the use of AI in the audit is a logical and necessary step to improve the efficiency and effectiveness of auditing activities. The article analyses the use of AI by the Big Four companies – Deloitte Touche Tohmatsu Limited (hereinafter – Deloitte), Ernst & Young Global Limited (hereinafter – EY), Klynveld Peat Marwick Goerdeler (hereinafter – KPMG) and PricewaterhouseCoopers (hereinafter – PwC). One of the key aspects of the article is the analysis of the benefits of using AI in audit. It is emphasised that AI can significantly increase the efficiency of audit procedures, reduce the number of human errors, and identify new patterns and trends in the data. In addition, AI allows for a more in-depth analysis of the financial statements and identifies risks that may be missed in a traditional audit. At the same time, the article focuses on the challenges associated with the use of AI in audit. The main ones include the need for high quality data for the auditor’s work, transparency of the algorithms, quality of models, and ethical issues related to the use of AI. The article also discusses the prospects for the development of AI in audit. The authors predict that in the future, AI will become an integral part of audit activities, changing traditional audit models and opening up new opportunities to improve the quality of auditing services. The results of the study can be used by auditing companies to develop new audit methods and tools, as well as to improve the quality of auditing services. This article will be useful for auditors, AI researchers, and anyone interested in the development of technology in the audit sector.