DOI: https://doi.org/10.14710/ajlm.2024.24652

The Role of Artificial Intelligence in Enhancing Global Internal Audit Efficiency: An Analysis

*Iyad Ghafar  -  Faculty of Economics and Business, Department of Accounting, Universitas Indonesia, Indonesia
Widya Perwitasari  -  Faculty of Economics and Business, Department of Accounting, Universitas Indonesia, Indonesia
Rama Kurnia  -  Faculty of Economics and Business, Department of Accounting, Universitas Indonesia, Indonesia
Open Access Copyright (c) 2024 IYAD GHAFAR, Widya Perwitasari, Rama Kurnia
Creative Commons License This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

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Abstract

This research paper explores the transformative role of artificial intelligence (AI) in enhancing the efficiency and effectiveness of global internal audit functions. As businesses increasingly adopt AI-driven technologies, internal auditing has witnessed significant advancements in data analysis, risk detection, compliance monitoring, and decision-making processes. The paper analyzes how AI tools like machine learning, natural language processing, and predictive analytics contribute to the automation of repetitive audit tasks, the detection of anomalies, and the improvement of audit accuracy and timeliness. Additionally, it addresses the challenges associated with AI adoption, including data privacy concerns, skills gaps among auditors, and the integration of AI into existing audit frameworks. The study also provides a comparative analysis of AI-enabled versus traditional audit practices, highlighting AI’s potential to enhance audit quality, reduce operational costs, and provide deeper insights into financial and non-financial risks. By examining case studies and industry practices, the paper emphasizes AI’s critical role in shaping the future of internal auditing on a global scale. The findings suggest that AI’s integration into internal audits is not just a trend but a necessary evolution for achieving optimal audit outcomes.

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Keywords: Artificial Intelligence, Internal Audit, Efficiency, Risk Detection, Audit Automation.

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