Impacts of Artificial Intelligence on Auditing Quality: A CaseStudy in Chattogram City, Bangladesh

Artificial intelligence (AI) is becoming increasingly valuable in our daily ‎decision-making processes. Therefore, a study was conducted to examine ‎the impact of AI on various aspects such as perception, regulation, ‎organizational structure, and procedural changes, particularly focusing on ‎new competencies in audit procedures. This study utilized closed-ended ‎survey data obtained on a Likert scale, ranging from 1 (strongly disagree) ‎to 5 (strongly agree). The data was gathered through purposeful sampling ‎from experienced professionals in the audit field located in the port city of ‎Chattogram, Bangladesh. The survey response data are categorized into six ‎factors using factor analysis through the principal component analysis ‎extraction method and Varimax rotation with Kaiser Normalization, ‎conducted via IBM SPSS Statistics 26, and validated with Cronbach's ‎Alpha coefficient. Based on factor analysis, the structural equation model ‎‎(SEM) was developed with IBM SPSS AMOS 22 software, taking ‎application of artificial intelligence as exogenous variable and auditor ‎perception change, audit regulatory change, audit structural change, audit ‎procedural change, and new competencies arise in auditing as endogenous ‎variable and validate with convergent, discriminate and model validity. ‎The finding shows that artificial intelligence has no significant ‎contribution to audit structural change or audit procedural change. ‎Therefore, applying artificial intelligence in the audit procedure, no ‎structural or procedural changes are required. However, the application of artificial intelligence has a positive and significant contribution to perception change, audit regulatory change, and the emergence of new competencies in auditing for auditors. ‎Consequently, applying artificial intelligence to audit procedures may change auditor perception, audit regulations may require modification, and new competencies may arise in auditing to adapt to the environment of artificial intelligence. The study results may be utilized in policy formulation ‎and their impact on implementing artificial intelligence in audit procedures‎.