Rethinking the audit process. This report provides an analysis of how artificial intelligence can provide optimization opportunities and renewal in the audit profession. Today’s audit are defined by audit ethics, laws and International Standards on Auditing (ISAs), but breakthrough innovations like artificial intelligence are eliminating a number of the labor‐intensive manual processes, and even imitate the auditor’s refined thinking. This delivers valuable insight for both auditors and clients, which simply were not possible before. AI are rapidly changing the world, and therefore auditors need to adapt, which is why Big 4 companies are already investing in artificial intelligence to future‐proof the audit career. Methods of analysis includes a value‐chain, which shows how different AI techniques adds value to the auditor. Including what strengths and weaknesses, opportunities and threats, the auditor should be aware of when implementing artificial intelligence to the audit. Based on this, the analysis will examine optimizing opportunities in the audit process from the initial stages of identifying and assessing risks of material misstatements to the execution and audit report. Results of data analyzed show that it is possible to optimize audit tools such as substantive analytical procedures and test of detail. Furthermore, a discussion of ethics and law lead to the emerging need of change in the existing ISAs in order to pursue the implementation of artificial intelligence. The report finds the prospect of AI is necessary to prosper in the future and will both change the auditor’s background and significantly change how the auditor works. The implementation of AI will release time for the auditor to work on more value‐creating tasks instead of time‐ consuming repetitive tasks. AI can support the auditor in both the audit procedures and decision‐making, by examining all the existing data from his clients more thoroughly and making the audit more efficient. This will however require changes in the existing ISAs, so that the auditor knows how to obtain sufficient and appropriate audit evidence with artificial intelligence. The changes in the ISAs include further requirements, or replacement of requirements, to make the implementation possible for auditors to pursue‐ and support the required implementation of artificial intelligence in the audit process.
|Educations||MSc in Auditing, (Graduate Programme) Final Thesis|
|Number of pages||128|