The Transformative Impact of Digitalization and Artificial Intelligence on Audit Efficacy and Fraud Risk Management
Author:
Aura Emanuela DOMIL, Alin Emanuel ARTENE, Codruta Daniela PAVEL, Iulia-Andreea SARAC
JEL:
M42, O33, L86, G32
DOI:
10.20869/AUDITF/2026/183/019
Keywords:
internal audit; digitalization; fraud detection; audit automation;
Abstract:
The last 5 years have brought unprecedented paradigm shifts for the audit industry. The economy of the last decade, fueled by increasingly complex financial transactions and rapid technological advances, is shaping the perspectives of internal and external users of accounting information. This paper attempts to identify the impact of digitalization and digital transformations based on artificial intelligence on the efficiency and accuracy of the audit. The article reflects on the way in which fraud is now recognized as fraud but also on the ways of detecting and preventing fraud. Technologies that have gained momentum in the last 5 years, including artificial intelligence, machine learning, robotic process automation, data analytics, neural networks that underpin response and forecasting algorithms, the blockchain already popularized by cryptocurrencies, and tools that help with computer-assisted auditing, come together to enable real-time anomaly identification and significantly greater operational efficiency in traditional auditing. The article contrasts the old paradigm of manual auditing with the new paradigm of artificial intelligence-based auditing and suggests a study on the future of auditing and how technology can improve financial accountability. In the authors’ view, digitalization is not just about technology but represents a quantum leap in risk management, predictive analytics and fraud prevention. Data analysis based on artificial intelligence applied to continuous auditing will cover a larger number of transactions and promptly detect irregularities, limiting financial losses so desired by both managers and shareholders and will certainly improve stakeholders’ confidence in the integrity of accounting reports. Also, the proposed empirical research attempts to update the fraud triangle and the technology acceptance model as conceptual frameworks.
Abstract(178KB)
Article(928KB)