AI-Powered Internal Auditing: Transforming the Profession for a New Era

Muhammad Khairuldin Al Hafiz Ismail, Wan Ahmad Aqief Muhaideen Ahmad Rajiun, Saidatul Shahnaz Binti Mustapa Kamal, Nurin Irdina Azmidal, Nurfatihah Izzati Sharul Nizam, Nur Danisha Iman Mohammad Yussop, Muthyaah Mohd Jamil and Nur Aini Deraman
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Muhammad Khairuldin Al Hafiz Ismail: Faculty of Accountancy, Universiti Teknologi MARA, Cawangan Selangor, Kampus Puncak Alam, Selangor, Malaysia
Wan Ahmad Aqief Muhaideen Ahmad Rajiun: Faculty of Accountancy, Universiti Teknologi MARA, Cawangan Selangor, Kampus Puncak Alam, Selangor, Malaysia
Saidatul Shahnaz Binti Mustapa Kamal: Faculty of Accountancy, Universiti Teknologi MARA, Cawangan Selangor, Kampus Puncak Alam, Selangor, Malaysia
Nurin Irdina Azmidal: Faculty of Accountancy, Universiti Teknologi MARA, Cawangan Selangor, Kampus Puncak Alam, Selangor, Malaysia
Nurfatihah Izzati Sharul Nizam: Faculty of Accountancy, Universiti Teknologi MARA, Cawangan Selangor, Kampus Puncak Alam, Selangor, Malaysia
Nur Danisha Iman Mohammad Yussop: Faculty of Accountancy, Universiti Teknologi MARA, Cawangan Selangor, Kampus Puncak Alam, Selangor, Malaysia
Muthyaah Mohd Jamil: Faculty of Accountancy, Universiti Teknologi MARA, Cawangan Selangor, Kampus Puncak Alam, Selangor, Malaysia
Nur Aini Deraman: Faculty of Accountancy, Universiti Teknologi MARA, Cawangan Selangor, Kampus Puncak Alam, Selangor, Malaysia

International Journal of Research and Innovation in Social Science, 2024, vol. 8, issue 10, 2406-2413

Abstract: Artificial Intelligence (AI) has seen widespread adoption in various sectors including healthcare, finance, manufacturing, and retail. In Malaysia, AI adoption is accelerating as the country seeks to enhance its competitiveness and foster innovation. Due to the emergence of AI in the organizational landscape, it has brought in change paradigm in the internal auditing profession. To remain effective, internal auditors must quickly adapt and capture AI capabilities into their work routine. This paper reviewed 31 journals published from various reliable academic resources. Three themes have been established: the roles of internal auditors, the benefits to internal auditors of adopting AI and the challenges of internal auditors in using AI for fraud detection. This paper highlights several roles of internal auditors using AI, it also highlights the benefits of adopting AI in the fraud detection process. The most prominent benefit of using AI is its ability to conduct real-time fraud detection, provide wider coverage, automate repetitive and labor-intensive tasks, and improving detection through its predictive analysis capability. Along with these advantages, this paper also discusses the significant challenges internal auditors run into when integrating AI into fraud detection, highlighting the difficulties in adjusting to this cutting-edge technology.

Date: 2024
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