Impacts of AI Implementation on Audit Processes and Public Expectations

Abstract

Our primary research question investigates how the implementation of Artificial Intelligence (AI) in auditing will affect the audit processes, audit quality and the Publics Expectations. We have divided this research question into three sub-research questions. Our sub-research questions are categorized into these three themes: Implementation of AI in audit firms, Audit Quality and The Audit Expectation-Performance Gap. We conducted 15 in-depth-interviews in Norway, comprising of nine auditors and six investors. All interviews were done either in person or by video call. Our findings uncover a significant difference in the extent the different audit firms implement AI in their auditing processes. Larger firms are implementing AI more extensively than the smaller audit firms. Furthermore, the use of AI in audit processes is expected to increase the accuracy and effectiveness of audits. Therefore, the audit quality is expected to be improved. Lastly, we found that the evolvement of The Audit Expectation-Performance Gap is challenging to predict, due to the multiple factors that either can widen or narrow the gap.