The Effects of Artificial Intelligence in Auditing

Various industries are witnessing significant changes with the arrival artificially intelligent machines. Auditing, a field that is heavily based on repetitive tasks will evolve with the application of Artificial Intelligence (AI). Recently, there has been progressive research aimed in creating physically and emotionally artificially intelligent machines. These projections mean accounting will see change not just in tasks that required human labour but also those that are reliant on professional judgement and critical thinking. Although Canada has been a hotspot for AI innovations, adaptation of these advanced technologies in auditing have been relatively slow. The area of auditing has lagged behind technological adoption in the past, but these changes are inevitable. There have been several investments in AI initiatives by auditing firms as well as implementation of new AI technologies firms’ audit processes. However, there hasn't been any initiatives taken by standard setters and regulators are not directed towards successful adaptation of future disruptive technologies. This paper examines AI-related research in Machine Learning (ML) and Robotics, using Ray Kurzweil’s Singularity theory, to examine the capabilities of AI technologies and its effects on auditing and proposes possible solutions for successful adaptation and evolution alongside a future AI-driven world. Moreover, it will highlight the importance of the involvement of different regulatory committees in driving adaptation to move ahead.