An Assessment of the Paradigm Shifts of Nigerian Audit Firms’ Audit Procedure through the Adoption of Artificial Intelligence

Abstract

The auditing field has experienced a major alter with the integration of AI-driven tools and techniques. However, to maintain professional ethics remain crucial, guiding auditors to preserve integrity, objectivity and independence. This study explores into the intersection of AI (Artificial Intelligence) and professional ethics in audit procedures among Nigerian audit firms, evaluating their combined impact and implications. Using a survey research design, data was collected through structured questionnaire from professionals in the accounting field including accountants, auditors, and tax practitioners particularly those familiar with artificial intelligence usage in accounting firms based in Lagos, Nigeria's commercial center. The research incorporated all 56 registered accounting firms in Lagos State, utilizing a census sampling method to ensure representation of the entire population. This resulted in a sample size equivalent to 100% of the population, comprising 280 participants. Both descriptive and inferential statistical analyses were utilized to assess the proficiency levels of the respondents. The findings of the regression analysis findings revealed a significant positive effect between the adoption of artificial intelligence and on audit procedures within Nigerian audit firms. This suggests that both AI-driven technologies and a commitment to ethical principles contribute synergistically to the effectiveness and efficiency of audit procedures within these firms. The findings underscore the significance of incorporating ethical factors into the development and deployment of AI technologies in auditing practices. It is therefore, recommended that Nigerian audit firms should establish clear policies and guidelines for the effective use of AI in auditing, emphasizing ethical considerations.

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