ARTIFICIAL INTELLIGENCE IN AUDITING: OPPORTUNITIES, CHALLENGES, AND FUTURE DIRECTIONS

Amid growing data complexity, artificial intelligence (AI) holds transformative potential for auditing. This study explores AI’s role in enhancing audit efficiency and effectiveness, employing a qualitative research design based on secondary sources. It delves into the impacts of AI-driven technologies, like machine learning, on risk assessment, anomaly detection, and continuous auditing. While AI offers substantial benefits such as improved speed and accuracy, challenges related to data privacy, skills adaptation, and ethics persist. The paper calls for regulatory frameworks and skill sets to address them, providing practical guidelines for professionals and regulators and contributes to understanding AI’s transformative role in auditing.