International Council for Education, Research and Training

AI in Auditing: A Comprehensive Review of Applications, Benefits and Challenges

Ganapathy, Venkatasubramanian 

Faculty in Auditing Department, 

Southern India Regional Council of the Institute of Chartered Accountants of India (SIRC of ICAI), 

Chennai, Tamil Nadu, India

Abstract

The rapid evolution of artificial intelligence (AI) technologies has brought about transformative changes in various industries, and the field of auditing is no exception. This research paper presents a comprehensive review of the integration of AI in auditing practices, highlighting its applications, benefits, and associated challenges. Auditing, a critical process for ensuring the accuracy and reliability of financial information, has traditionally been a labor-intensive and time-consuming endeavor. The emergence of AI technologies, such as machine learning, natural language processing, and data analytics, has revolutionized the way audits are conducted. AI-powered auditing tools offer advanced capabilities for data analysis, pattern recognition, anomaly detection, and risk assessment. These capabilities enhance the effectiveness and efficiency of audits by allowing auditors to focus on high-risk areas and perform more in-depth analysis. The paper explores various applications of AI in auditing, including: Automated Data Analysis, Predictive Analytics, Fraud Detection, and Natural Language Processing (NLP), Continuous Monitoring. While AI brings significant benefits to the auditing process, its adoption also presents certain challenges like Data Quality and Integration, Interpretability, Ethical Considerations, Technical Expertise, Regulatory Frame Work. In conclusion, AI has the potential to revolutionize auditing practices by enhancing efficiency, accuracy, and risk assessment. However, successful integration requires addressing challenges related to data quality, transparency, ethics, skills, and regulations. As AI technologies continue to evolve, auditors and stakeholders must collaborate to harness the full potential of AI while maintaining the integrity and credibility of the auditing process. This paper serves as a comprehensive resource for auditors, researchers, and policymakers seeking to understand the current landscape and future directions of AI in auditing.

Keywords: Artificial Intelligence, (AI), Auditing, Deep Learning, Predictive Analytics, Fraud Detection, Natural Language Processing (NLP).

Impact Statement

The research paper on AI in Auditing presents a comprehensive review of applications, benefits, and challenges in the realm of artificial intelligence. This pioneering study delves into the transformative impact of AI technologies on auditing practices, elucidating diverse applications ranging from automated data analysis to anomaly detection. By meticulously analyzing the benefits, the paper highlights how AI optimizes auditing processes, ensuring greater accuracy, efficiency, and risk mitigation. Moreover, it explores the challenges associated with integrating AI, including ethical considerations, data security, and human-AI collaboration. This research not only enriches academic discourse but also offers invaluable insights for auditing professionals and policymakers. By bridging theoretical frameworks with real-world applications, this paper lays the foundation for a future audit landscape where AI is seamlessly integrated, revolutionizing the industry and ensuring audit quality in an increasingly complex digital world.

About The Author

Career Objective:

Career Growth in the teaching profession with academic excellence and pursuit of further qualifications and Research.

 

Academic Profile:   

Title 

Institution

Class/Grade 

Year 

M.Phil. (Commerce)

University of Madras, The Quaide Milleth 

 College for Men, Medavakkam, Chennai

I Class 

2015-2016

B.Ed.

IGNOU (Distance Mode) 

I class 

Dec 2009

M.Com.

Annamalali University( Distance Mode)

I Class 

May 1995 

D.P.C.S (Data Preparation and Computer Software)

NCVT Course at Sri Ramakrishna Mission Computer Centre, Chennai

I Class

April 1993

B.Com

Bharathidasan University, St. Joseph’s College (Autonomous) Trichy.

         

I Class

April 1990

 

Participation      :       MOOC COURSE: 06;

 

AICTE-ATAL FDP: 06

AICTE-STTP: 02,

AICTE-ISTE: 01;

ARMY INSTITUTE OF TECHNOLOGY: FDP 01;

 

Amazon Web Service Program (AWP): 10;

Google Applied Skills: 01;

Great Learning Academy: 01

 

Capacity Building Program (CBP): 03;

UGC-STRIDE Program: 01;

UGC- HRDC: 06;

 

REFRESHER PROGRAM (Under the aegis of   Ministry of Education with PMMMNMT): Commerce – Grade ‘A’

 

Faculty Development Program (FDP):36;

Faculty Knowledge Sharing Program: 01;

Management Development Program: 01;

On-Line Course: 01

 

National Conference: 10, 

International Conference: 07;

 

National Webinars: 250; 

International Webinars: 330;

 

Paper Presentation (National) 01;

Paper Presentation (International) 03;

 

 

Dissertation             :    CSR in the Health Care Industries (With Special Reference to the 

                                      Multi-specialty Hospitals in Chennai Region).

 

Paper Presentation at National Conference:

 

S.NO

    CONFERENCE

PAPER PRESENTATION

COLLEGE/UNIVERSITY

MODE                   

  1

UGC Sponsored National Conference on Make in India-Opportunities and Challenges for Indian Industries

Corporate Social Responsibilities and Rural Development

The Quaide Milleth College for Men, Medavakkam, Chennai, Tamil Nadu, India

Physical Mode


07-01-2016





Paper Presentation at International Conference:

 

01

3rd Doctoral Research International Conference on ‘Social Sciences, Humanities, and Interdisciplinary Research


CSR in Health Care Industries – With New Dimensions


North-Eastern Hill University (NEHU), Shillong, Meghalaya, India.

Online Mode


30-03-2022

02

One day International Multidisciplinary Conference on ‘Changing Global Dynamics in Law, Social Science, Science and Engineering


AI in Auditing : A Comprehensive Review of Applications, Benefits and Challenges


PGDAV College (Evening) University of Delhi, India, Jointly organized by 

International Council for Education, Research and Training (ICERT) 

Physical mode


13-09-2023

03

Recent Transformations in Social Sciences, Management, Science and Engineering


Recent Advances and Applications of Deep Learning in the Accounting Profession


Jawaharlal Nehru Rajkeeya Mahavidyalaya (Government College), Port Blair, Andaman and Nicobar Islands, India in association with International Council for Education, Research and Training (ICERT)

Physical Mode


From 29-09-2023 to 01-10-2023

 

Professional Qualification: ICWA – INTER – Gr-II – Dec. 1993

 

Academic Experience: (18+ Years)


  • Working as a Visiting Faculty in Auditing Department at SIRC of ICAI (Southern India Regional Council of the Institute of Chartered Accountants of India) Chennai, Tamil Nadu, India from April 3, 2019 to till date.

        

  • Worked as a Guest Faculty in Auditing Department at SIRC of ICAI (Southern India Regional Council of the Institute of Chartered Accountants of India), Chennai, Tamil Nadu, India, from September 1, 2016 to t March 31, 2019.

   

  • Worked as “Commerce and Accountancy” Faculty in Shikshaa Matric.Hr. Sec.School from April 2014 to April 2015 (1 Year)

 

  • Worked as “Commerce and Accountancy” Faculty in Rajkumar Sulochana Matric Hr.Sec. School, Madipakkam Chennai from June 2004 to March 2014. (10 Years)



  • Worked as “Commerce and Accountancy “Faculty in National Matric. Hr.Sec. School, St. Thomas Mount, Chennai from June 2002 to March 2003. (1 Year)

 

Achievement as a Faculty


  • My student has achieved Third Rank in Commerce and Accountancy (in Kanchipuram District) during XII Public Examination, March 2006 from Rajkumar Sulochana MHSS, Madipakkam- Chennai.


  • Cent percent results achieved in every year with more centum in Commerce and Accountancy.

 

               Life Membership in the Madras Library Association (MALA).

 

AWARDS:

 

01

BEST TEACHER AWARD FOR 2008-2009

Lions Clubs International District 324 A1

05-10-2008

02

GLOBAL YOUTH ICON AWARD 2022 On the occasion of UN  International Youth Day 2022

International Council for Education, Research and Training (ICERT)

12-08-2022

03

Dr. SARVEPALLI RADHAKRISHNAN GLOBAL EDUCATOR AWARD – 2022 On the occasion of Indo-Global Education Summit (IGES-2022)

International Council for Education, Research and Training (ICERT)

25-09-2022

04

INDIAN YOUTH ICON AWARD-2023 on the occasion of birth anniversary of Swami Vivekananda (January 12, 2023)

International Council for Education, Research and Training (ICERT).

12-01-2023

05

DR.A.P.J. ABDUL KALAM AWARD – 2023 (January 15, 2023)

International Council for Education, Research and Training (ICERT) in association with Department of English, I.N.M. PG College, Meerut, India.

15-01-2023

06

BABA SAHEB DR. B.R. AMBEDKAR EXCELLENCE AWARD 2023

International Council for Education, Research and Training (ICERT)

14-04-2023



Key Responsibilities handled as a Faculty

 

  • Class-Room Management
  • Conducted examinations, evaluation process and declaration of result.
  • Delivered scheduled lectures to sophomore and freshman standards.
  • Collected educational information and taught to students during classes
  • Employ differentiated teaching methods, incorporating, audio and visual activities to address all learning styles.
  • Conveyed subject matter and lecture to the students in a creative way.
  • Evaluated the students individually to identify areas of difficulties.
  • Provided individualized instruction to keep all students at expected skill level.
  • Ensured completion of assigned syllabus/Projects within the period given.
  • Meet with parents to discuss progress and address behavior or mastery issues.
  • Developed discipline plans and work closely with at-risk students.

 

Corporate Experiences: (9 years)

 

  • Worked as Audit Executive in an Audit Firm (July 2001 to May 2002 & from April 2003 to May 2004. (2 years) 

 

  • Worked in Ramasubramaniyam & Co. – a leading container handling and transportation concern as “Accountant” from June 1994 to May 2000 and as a “Programmer” from June 2000 to June 2001. (7 years).

 

My Corporate Experience, in addition to the academic knowledge, will be very much helpful to train the students in the relevant subjects.

 

Computer Proficiency : DIPLOMA IN ADVANCED JAVA AND WEB TECHNOLOGIES at SSI, Vadapalani, Chennai in             April 2001.

Internet Language : Java

 

Scripting Language :          Java Script

Markup Language : HTML

Server side Components : Servlets, Java Server Pages (JSP)

Database Connectivity : JDBC (with Oracle 8)

 

PROJECT DETAILS

 

Title : Banking (Certificate from SSI, Vadapalani, Chennai)

 

OS : Windows & 9x /2000

 

Software : Java Servlets, JSP, JDBC with Oracle 8, HTML

 

Description : This application allows the user to open new account (Current, Savings, FD, and RD) Performing transactions like deposits / withdrawals, calculation of Interest and Closure of accounts.

S.No.

Course

Institution(s)

Year

1.

D.O.E.A.C.C. ‘O’ Level

Amritha Institute of Computer Technology, Chennai.

1998

2.

Unix, C, Oracle

SSI, Vadapalani, Chennai.

1998

3.

C++

Stenographer’s Guild IT, Chennai

2000

4.

Diploma in Expert Accountant

(Tally 5.4,MS-Office)

M.M.Computer Center, Chennai

2002



References
  1. AICPA & CIMA (American Institute of CPAs (AICPA) and Chartered Institute of Management Accounts (CIMA):https://www.aicpa-cima.com/home
  2. Artificial Intelligence Governance and Auditing: https://ai-governance.eu/
  3. Nanonets:https://nanonets.com/blog/using-artificial-intelligence-in-audits/
  4. The Institute of Internal Auditors, USA: https://www.theiia.org/
  5. Robo-Auditing using AI (e-book): https://www.amazon.in/Robo-Auditing-Artificial-Intelligence-Corporate-Processes-ebook/dp/B07FW85YMM
  6. Artificial Intelligence (AI) in Accounting and Auditing (e-journal): https://www.scirp.org/journal/paperinformation.aspx?paperid=115007
  7. Wiley online library: https://www.scirp.org/journal/paperinformation.aspx?paperid=115007



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