Artificial Intelligence In Audit Process – Its Use And Challenges In Indian Perspective And Advanced Countries

Abstract

Artificial intelligence (AI) is transforming the auditing landscape by improving accuracy and efficiency while lowering auditor risk when auditing an entity's financial statements. The study aims to comprehend how AI is used to carry out the auditing procedure. To find important areas where AI tools like robotic process automation (RPA), machine learning (ML), and natural language processing (NLP) data analytics can be used to streamline audit procedures and enable continuous auditing, a thorough review of the current literature on the subject has been conducted. When comparing the audit process in the Indian business environment to that of industrialised nations, the report identifies important issues such as a lack of technology, technical skills, data security and privacy, regulatory and legislative systems, and cultural and legal aspects. When using IA in auditing, it also identifies the ethical considerations and infrastructure needs.

In order to help auditors, organisations, and regulators use AI to increase the effectiveness and transparency of the audit process, this paper offers specific recommendations for better integration of AI in the auditing process, specifically in the Indian context.