AI Use in Auditing - A Technology Dominance Perspective

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2025-01-07

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5494

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Abstract

AI technologies’ use in audit work is expected to deliver cost efficiencies and improve decision-making. However, some deleterious effects of reliance on technology are discussed in the literature. Using the effects of technology dominance on audit work, enunciated in the theory of technology dominance (TTD) as theoretical anchor and qualitative methodology, our study investigates the consequential effects such as deskilling, automation bias, complacency, and illusion of competence on audit work and how audit firms deal with those effects. Our study observed that audit firms are prepared to deal with these risks through controlled deployment and use of AI tools, visibility of the tool, upskilling of early career auditors, and matching the tool with the auditor’s skills. Balancing the automation of task with the retention of expertise; sharing of data, models and economic benefits with the audit clients; and loss of interest and therefore the expertise to do mundane tasks are challenges observed.

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AI, Organizing, and Management, artificial intelligence, auditing, deskilling, technology dominance

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10

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Proceedings of the 58th Hawaii International Conference on System Sciences

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Attribution-NonCommercial-NoDerivatives 4.0 International

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