A Method to Categorize and Classify Artificial Intelligence applicable to the Risk-Based Audit Approach

Die Unternehmung – Swiss Journal of Business Research and Practice, Forthcoming

Posted: 21 Mar 2024

Date Written: January 20, 2023

Abstract

The technological capabilities of Artificial Intelligence (AI) have significant implications for the auditing profession. Nevertheless, there is no guidance on the use of AI, which is preventing its widespread adoption within the profession. To make use of AI’s functionalities, there is a need for guidance on how AI can be used to gather sufficient and appropriate audit evidence. Thus, utilizing Design Science Research, the present study developed the AI Categorization and Classification (AI-CC) Method as a central artifact to provide guidance on the use of AI within the profession. The target users of the AI-CC Method are regulators, standard setters, the strategic management of the Big Four, and individual auditors. A comprehensive evaluation involving several AI experts across Germany confirmed the overall usefulness of the AI-CC Method for the entire auditing profession.

Keywords: Artificial Intelligence, Machine Learning, Deep Learning, Risk-based Auditing, Audit Standards, Auditing

JEL Classification: M40, M41, M42, O30, O32, O33

Suggested Citation

Föhr, Tassilo Lars, A Method to Categorize and Classify Artificial Intelligence applicable to the Risk-Based Audit Approach (January 20, 2023). Die Unternehmung – Swiss Journal of Business Research and Practice, Forthcoming, Available at SSRN: https://ssrn.com/abstract=4330607 or http://dx.doi.org/10.2139/ssrn.4330607

Tassilo Lars Föhr (Contact Author)

Ulm University ( email )

Albert-Einstein-Alee 11
Ulm, D-89081
Germany

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