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The Advantages and Difficulties of Using AI and BT in the Auditing Procedures: A Literature Review

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Artificial Intelligence-Augmented Digital Twins

Part of the book series: Studies in Systems, Decision and Control ((SSDC,volume 503))

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Abstract

The objective of this study is to provide a comprehensive analysis of the advantages and obstacles related to the implementation of Artificial Intelligence (AI) & blockchain technology (BT) in the field of auditing. the article reviews existing research on the impact and utilization of Artificial Intelligence & blockchain technology in Auditing procedures, focusing specifically on the advantages and difficulties they present. The utilization of AI & BT in auditing procedures offers various advantages, including it strengthens efforts to combat fraud and promotes compliance with international standards, it expedites audit tasks, resulting in time and effort savings, it enhances audit quality by reducing human error, ensuring the reliability and relevance of information, it encourages the advancement of traditional auditing practices while decreasing the reliance on human involvement in auditing and accounting roles, leading to cost savings and decreased risk of errors. Nevertheless, the utilization of AI and BT in auditing also presents difficulties such as high implementation costs, the need for continuous learning on AI developments by auditors, and concerns about security vulnerabilities, potential attacks, as well as the presence of racial biases within blockchain programs used in auditing procedures. This paper significant to provide a comprehensive evaluation of the problems encircling the current and future utilization of Artificial Intelligence & blockchain technology in auditing procedures. By addressing these critical matters and concerns, policymakers and stakeholders can develop a deeper understanding of the impact of AI and BT on economic and social growth. Consequently, this understanding can inform future policies that enhance business practices, reduce fraud incidents, expedite audit tasks, improve audit quality, and minimize human error, thereby contributing to economic and social development. While there is extensive literature available on the utilization of AI & BT in auditing procedures, there remains a lack of comprehensive understanding regarding the advantages and difficulties associated with these processes. This study bridges that gap by providing policymakers with valuable insights into the utilization of Artificial Intelligence & blockchain technology in auditing.

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Authors and Affiliations

  1. Department of Accounting, Faculty of Business, The Hashemite University, Zarqa, Jordan

    Sajeda Abdel Rahman Hamdan & Abdullah Khaled Al Habashneh

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  1. Sajeda Abdel Rahman Hamdan
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  2. Abdullah Khaled Al Habashneh
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Correspondence to Sajeda Abdel Rahman Hamdan .

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Editors and Affiliations

  1. College of Business and Finance, Ahlia University, Manama, Bahrain

    Abdalmuttaleb M. A. Musleh Al-Sartawi

  2. Accounting and Finance, Liwa College of Technology, Abu Dhabi, United Arab Emirates

    Anas Ali Al-Qudah

  3. Department of Computerized Financial and Banking Science, Business and Economics Faculty, Palestine Technical University—Kadoori, Tulkarm, Palestine, State of

    Fadi Shihadeh

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Hamdan, S.A.R., Al Habashneh, A.K. (2024). The Advantages and Difficulties of Using AI and BT in the Auditing Procedures: A Literature Review. In: Musleh Al-Sartawi, A.M.A., Al-Qudah, A.A., Shihadeh, F. (eds) Artificial Intelligence-Augmented Digital Twins. Studies in Systems, Decision and Control, vol 503. Springer, Cham. https://doi.org/10.1007/978-3-031-43490-7_9

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  • DOI: https://doi.org/10.1007/978-3-031-43490-7_9

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