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Effect of Artificial Intelligence on Audit Quality of Audit Firms in Akwa Ibom State

Akpan, Dorathy Christopher, Akpakah, Abasiama Malachy, Akpanowo, Rita Etop, Frank, Uyaiabasi UnyimeChrist, Akpan, Stella Augustine

Abstract

The integration of AI has become increasingly significant, particularly in enhancing the quality of audits performed by audit firms and this presents a significant challenge regarding its impact on audit quality. The main objective of this study was to ascertain the effect of artificial intelligence on audit quality of audit firms in Akwa Ibom State. The research design adopted for the study was survey design and the population of the study comprised 150 staff members of accounting firms in Akwa Ibom state. Purposive sampling technique was employed to select only staff with the knowledge of AI (data mining, machine learning, robotic process automation) and 120 staff JAFM JAFM JAFM members were selected. This study made use of primary data obtained from the researcher’s self- constructed and well-structured Linkert 5-point questionnaire. These questionnaires were administered to the 120 respondents from 20 selected accounting firms located in Akwa Ibom State. The outcome of the analysis revealed that artificial intelligence has no significant effect on audit tenure; artificial intelligence has no significant effect on audit fees; artificial intelligence has no significant effect on audit independence of audit firms in Akwa Ibom State. Based on these findings, it was concluded that artificial intelligence does not significantly improve audit quality of audit firms in Akwa Ibom State. It was therefore recommended that even though AI may not significantly impact audit tenure, independence, or fees, audit firms should continue to invest in AI technologies to enhance efficiency and accuracy in audit procedures.

Keywords

Artificial intelligencedata miningmachine learningrobotic process automation

References

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