Artificial Intelligence in Financial Auditing: A Systematic Approach to Its Legal, Regulatory, and Governance Implications

Abstract

The term 'artificial intelligence' is understood to denote the capacity of computer systems to execute tasks requiring human intelligence, such as learning and decision-making. Within the context of financial auditing, this capability enables the expeditious examination of accounting records, facilitating the identification of irregularities in a predictive manner. However, the integration of artificial intelligence into financial auditing engenders legal, technical and ethical tensions that remain unresolved. The objective of this research endeavour was to delve into the intricate web of legal, regulatory, and governance implications that are intricately intertwined with the utilisation of artificial intelligence within the domain of auditing. The focal point of this exploration lay in the identification of regulatory frameworks, legal principles, and the emergent challenges that are poised to shape the future of this multifaceted field. The PRISMA 2020 methodology was instrumental in facilitating a rigorous and systematic review of the literature, thereby integrating fragmented approaches within a field that is subject to constant evolution. The findings of this study indicate that the concept of responsibility is subject to transformation by artificial intelligence and that flexible governance structures are a prerequisite for its effective management. Furthermore, the necessity to enhance professional competencies and to establish collaborative environments that strike a balance between innovation, oversight and public confidence in automated financial systems is emphasised.