Benefits and Challenges of Utilizing Automation and Artificial Intelligence in Auditing Firms in South Africa

Justine Gomolemo Nkobane ()
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Justine Gomolemo Nkobane: University of Johannesburg

A chapter in Impacting Society Positively Through Technology in Accounting and Business Processes, 2025, pp 667-682 from Springer

Abstract: Abstract We are living in a world where automation and artificial intelligence (AI) are being embraced by society at large as well as businesses operating in the public and private sectors. COVID-19 heightened the utilization of automation and AI in auditing procedures. Therefore, the purpose of this study is to investigate and identify the benefits and challenges of automation and AI in auditing faced by the auditing industry in applying AI technologies. Through the systemic review of literature and review of transparency reports of the Big 4 audit firms in South Africa, this study concluded that automation and AI are being utilized in the Big 4 audit firms with the intention to operate efficiently and effectively. The results revealed that the Big 4 audit firms are all using a digital audit methodology for the purpose of servicing clients and as a result are utilizing AI and automation in delivering this service. However, the study further found that the development of AI brings about both opportunities and challenges in auditing firms. The study also highlighted that auditing firms should continue integrating and developing new AI theories and improve the application of big data and cloud computing to continue improving audit quality and efficiency. The study concluded that the automation and use of AI are beneficial in ensuring that audit firms in South Africa improve audit quality and efficiency by ensuring that more focus can be placed on decision-making and reliance can be placed on automation and AI for more routine procedures. In contrast, the use of automation and AI is reducing the dependence on human labor as it gradually improves efficiency, thus resulting in resistance by employees.

Keywords: Automation; Artificial intelligence; Audit and Big data (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-031-84885-8_36

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DOI: 10.1007/978-3-031-84885-8_36

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