Artificial Intelligence in Construction Financial Audits: Opportunities and Challenges for Public Accounting Firms

The construction sector is one of the most vulnerable to unethical practices. Therefore, careful monitoring of construction project execution is essential to avoid potential fraud. The complexity of the construction process and the high cost of projects complicate financial audits. Artificial intelligence (AI) can assist with financial audits of construction projects. This study aims to examine the opportunities and challenges of implementing AI-based audits by public accounting firms. Using a quantitative approach, the study surveyed 14 different public accounting firms (KAPs) in Indonesia. The results show that most KAPs have a basic understanding of AI but lack the skills needed to implement it. Some of the challenges in implementing AI-based audits include high investment costs, limited technical expertise, data security, human displacement, and the lack of clear regulations regarding. The results of this study reveal that although AI-based auditing in construction projects is still in its early stages, there is significant potential for its application to improve audit transparency and accountability in Indonesia.