The implication of AI in redefining the role of auditors in the digital age

Abstract

PURPOSE: Auditing is now shaped by data-driven technologies that automate tasks, raising questions about the auditor's evolving role. As a result, the objectives of this study are to explore how the incorporation of AI technologies redefines the role of auditors in the digital age, evaluate the associated challenges and practical outcomes, and identify the essential skills and competencies auditors need to adapt to this transformation. DESIGN: To achieve these objectives, the study employed a qualitative approach. Ten semi-structured interviews were conducted with senior audit professionals from the Big Four and from mid-tier firms in Malta. FINDINGS: The findings of this study reveal that AI is transforming the auditing profession by reshaping the auditors' role and requiring new competencies. AI adoption in Maltese audit firms varies, with Big Four firms at the forefront, while mid-tier firms face challenges related to cost constraints and limited resources. AI enhances efficiency, accuracy, and audit quality, but also presents ethical concerns around data reliability, confidentiality, and transparency. The study underscores the need for continuous professional development to address emerging challenges in AI-driven auditing. Despite concerns about job displacement, human auditors remain essential. The findings suggest that those who embrace AI-driven change will enhance their value, while those who resist may face obsolescence. CONCLUSIONS: The study concludes that AI is reshaping the auditing profession by automating routine tasks, yet human judgement remains critical for ethical and professional considerations. Upskilling auditors by combining traditional expertise with technological proficiency is essential for leveraging AI effectively. The future of auditing depends on strategic AI integration, ensuring that technology complements rather than replaces human expertise. IMPLICATIONS: This study provides valuable insights into the evolving role of auditors in an AI-driven environment, highlighting both opportunities and challenges. The findings underscore the need for ethical safeguards and targeted upskilling to ensure AI enhances rather than disrupts audit integrity. This study also aims to inform local audit firms on how to strategically integrate AI while preserving professional judgement.