ARTIFICIAL INTELLIGENCE AND AUDIT QUALITY IN NIGERIA
- Dr. Mrs. Abimbola Joshua
- Mountain Top University Acconting 2024
- 77p
The study explores the transformative potential of artificial intelligence (AI) in enhancing audit quality within the Big Four accounting firms in Nigeria. Utilizing a descriptive survey research design, data were gathered through self-structured questionnaires targeting auditors experienced with AI technologies. The study focuses on three primary AI applications: image recognition, data mining, and machine learning. Findings reveal that image recognition significantly improves audit documentation and evidence gathering, while data mining enhances the detection of anomalies and potential fraud. Machine learning contributes to more accurate predictions and classifications, facilitating better decision-making in audits. The research underscores the critical role of AI in increasing the accuracy, reliability, and overall quality of audits. Despite challenges such as substantial initial investments, the need for continuous learning, and concerns about job displacement, the advantages of integrating AI into auditing practices outweigh these drawbacks. The study concludes that AI technologies significantly bolster audit quality, urging accounting firms to invest in AI tools, provide continuous training for auditors, and develop regulatory frameworks to ensure ethical AI use. Furthermore, the research recommends collaboration with technology providers and academic institutions to stay abreast of AI advancements and address ethical and privacy concerns. Future research should investigate the long-term effects of AI on audit quality and explore emerging technologies like blockchain and quantum computing. By adopting these recommendations, audit firms can leverage AI to enhance audit practices, maintain a competitive edge, and uphold the integrity of financial reporting in the evolving financial landscape.Keywords: Audit quality; Artificial intelligence; Data mining; Image recognition; Machine learning.