Today, automation, digitization, and integration of AI are becoming increasingly pervasive in the work environment, and as AI applications become integral to the rapid evolution of digital workplaces, a critical audit concern revolves around how professionals respond to this new milieu; in this realm, the adoption of AI in professional practice may require a cultural shift given that auditors tend to be cautious individuals (Davidson & Dalby, 1993).
As a cutting-edge information technology, AI can offer several advantages in auditing, including the ability to process large amounts of data, such as bank statements and legal contracts, much faster than human auditors, leading to more efficient reconciliation of accounts and improved audit quality. AI also minimizes over testing, allowing auditors to perform more efficient and targeted audit procedures (Dennis, 2024).
However, there are significant challenges to analyzing such data and producing up-to-date audit documentation, such as AI's inability to perform actions or controls independently and its lack of ability to make moral or ethical judgments (CPA Canada & AICPA, 2020). The challenges posed by AI, coupled with the inherently risk-averse nature of auditors, particularly audit partners facing potential litigation risks, highlight the significant influence of tone at the top in shaping audit firm culture. This risk aversion may contribute to auditors' reluctance to adopt a new and relatively unproven technology such as AI.