Artificial Intelligence in Audit Practice: Evaluating ChatGPT’s Role in Analytical Procedures Under Algerian Auditing Standard 520

Amara Amine ()
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Amara Amine: University of M’sila

A chapter in Proceedings of the International Conference on Artificial Intelligence Applications in Business Administration in MENA Region (ICAIABA 2026), 2026, pp 154-169 from Springer

Abstract: Abstract The field of financial auditing is undergoing a profound transformation driven by the rapid advancement of artificial intelligence technologies, particularly large language models such as ChatGPT, which have demonstrated advanced capabilities in analyzing financial data and identifying logical relationships among them. This study addresses a central question: to what extent can artificial intelligence support auditors in performing analytical procedures in accordance with Algerian Auditing Standard 520, while maintaining the quality and integrity of professional judgment. An experimental analytical methodology was adopted by simulating a real audit process using ChatGPT on the financial data of an Algerian trading company covering the period 2019–2024. The analysis focused on key indicators, including revenues, cost of goods sold, gross margin, and the professional activity tax (TAP), based on neutral inputs that excluded external context, in order to evaluate the model’s intrinsic analytical capacity under the logic of Standard 520. The findings reveal that ChatGPT demonstrated considerable effectiveness in identifying general trends, major fluctuations, and relationships among accounting variables in a manner consistent with analytical procedure principles. However, its performance remained limited in interpreting local economic and tax contexts, underscoring the need for human auditor intervention to ensure proper interpretation and validation of conclusions. The study concludes that integrating artificial intelligence into auditing practices can enhance analytical efficiency and accelerate decision-making, provided that its use is governed by professional and ethical frameworks ensuring that AI outputs remain subject to human oversight. It recommends establishing regulatory and methodological guidelines to enable the use of AI tools as supportive instruments within the boundaries of Algerian Auditing Standard 520.

Keywords: Artificial Intelligence; ChatGPT; Analytical Procedures; Algerian Auditing Standard 520; Audit Innovation (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6239-711-8_16

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DOI: 10.2991/978-94-6239-711-8_16

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