Leveraging ChatGPT for Enhancing the Internal Audit Process – A Real-World Example from a Large Multinational Company

27 Pages Posted: 25 Jul 2023

See all articles by Scott A. Emett

Scott A. Emett

Arizona State University (ASU) - School of Accountancy

Marc Eulerich

University of Duisburg-Essen, Mercator School of Management

Egemen Lipinski

Uniper SE

Nicolo Prien

Uniper SE

David A. Wood

Brigham Young University - School of Accountancy

Date Written: July 18, 2023

Abstract

We discuss how the internal audit function (IAF) of a large multinational energy company, Uniper, is starting to use ChatGPT to improve automation of internal auditing. We investigate the benefits and challenges of integrating ChatGPT into internal audit processes and assess its impact on the efficiency and effectiveness of the IAF. Uniper has implemented ChatGPT into parts of audit preparation, fieldwork, and audit reporting. On their initial tests, they estimate efficiency gains ranging from 50 to 80 percent for various processes. We report key risks and challenges with using ChatGPT in internal auditing as well as the initial key practices and rules for using ChatGPT. This study should help practitioners to learn how ChatGPT can aid in auditing and help inform researchers about this fast, emerging technology.

Keywords: ChatGPT, Internal Auditing, Audit Process, Large Language Models

JEL Classification: M4, M40, M42, M49

Suggested Citation

Emett, Scott A. and Eulerich, Marc and Lipinski, Egemen and Prien, Nicolo and Wood, David A., Leveraging ChatGPT for Enhancing the Internal Audit Process – A Real-World Example from a Large Multinational Company (July 18, 2023). Available at SSRN: https://ssrn.com/abstract=4514238 or http://dx.doi.org/10.2139/ssrn.4514238

Scott A. Emett

Arizona State University (ASU) - School of Accountancy ( email )

Tempe, AZ 85287
United States

Marc Eulerich (Contact Author)

University of Duisburg-Essen, Mercator School of Management ( email )

Lotharstrasse 65
Duisburg, 47057
Germany
00492033792600 (Phone)

HOME PAGE: http://www.msm.uni-due.de/ircg

Egemen Lipinski

Uniper SE

Nicolo Prien

Uniper SE

David A. Wood

Brigham Young University - School of Accountancy ( email )

518 TNRB
Brigham Young University
Provo, UT 84602
United States
801-422-8642 (Phone)
801-422-0621 (Fax)

HOME PAGE: http://marriottschool.byu.edu/employee/employee.cfm?emp=daw44

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