Auditing in the modern era: The effect of using the AI tools on external auditors’ ability of detecting fraud

Abstract

This research has investigated how the application of AI-based tools has affected external auditors in their detection of fraud in Oman. Analysis of responses from 70 auditors indicates that mid-career auditors with from 10 to 15 years of such experience are the best at implementing AI tools, while professionals with over 15 years' experience seem to threaten the returns less with some competencies. The regressions indicate an assurance that integrity and competence have a significant bearing on the audit result. The research points towards the positive influence of AI in augmenting audit quality as well as in the detection of fraud, while it also highlights the challenges of low AI adoption, skills scarcity, and ethical issues confronting Oman. In essence, the investigation confirms the benefits of AI integration in auditing while calling for further training, legal evolution, and organizational preparedness for the exploitation of AI's full potential towards fraud detection.

Keywords: Auditing, External Auditors, Fraud Detection, Audit Tools, AI Adoption,  Artificial Intelligence (AI).