Artificial intelligence and the prospect of audit quality in Nigeria

Abstract

Audit quality remains a highly debated topic within the realms of auditing and financial reporting research. The relevance of audit quality has grown increasingly important for both accountants and users of financial information. Several studies suggest that enhancing audit quality is closely linked to the integration of artificial intelligence (AI) in auditing processes. This research examines how AI influences audit quality by adopting a survey-based approach, utilizing structured questionnaires distributed to professional accountants and employees within the Big Four accounting firms. The Taro Yamane formula was applied to calculate the appropriate sample size, resulting in the collection of 275 completed questionnaires. To assess the consistency and credibility of the survey instrument, Cronbach’s alpha was used in conjunction with a pilot test. Both descriptive and inferential statistical methods were applied in analyzing the data. Descriptive results indicated strong support among respondents for the effectiveness of AI. Furthermore, regression analysis demonstrated a positive relationship between AI usage and improved audit quality. In light of these findings, it is recommended that managers and accounting professionals across private, corporate, and public sectors adopt artificial intelligence technologies, as they offer substantial economic benefits and contribute significantly to enhancing audit quality through increased accuracy, dependability, and prompt financial reporting.