10th U6+ Consortium of African Universities International Conference

The rapid advancement of Artificial Intelligence (AI) is reshaping industries, and auditing is no exception. This study explores the impact of AI on audit processes, focusing on its benefits, challenges, and implications for the profession. Leveraging AI technologies including machine learning and data analytics, auditors can enhance efficiency, accuracy, and risk assessment. However, integrating AI presents challenges, including the need for specialized skills, ethical concerns, and regulatory compliance. This research adopts a theoretical framework based on the Diffusion of Innovations Theory to analyze the adoption and effects of AI in auditing. The study finds that AI significantly improves the efficiency and accuracy of audit processes, enhances the quality of audit judgments, strengthens fraud detection through pattern recognition, anomaly detection, and predictive analytics. The study concludes that AI adoption by audit firms in Nigeria significantly enhances the audit process by improving efficiency, increasing the reliability of audit evidence as well as strengthening fraud detection and risk management capabilities but AI is not a replacement for human auditors but rather a tool that must complement their expertise. The study recommended that auditors should balance AI- human integration through acquisition of necessary digital capacity. collaborate with AI developers and vendors to ensure that tools designed for auditing are transparent, customizable, and aligned with professional standards, formulate clear ethical guidelines and auditing standards specific to the use of AI in auditing; all with a view to have frameworks that addresses transparency, data privacy, and accountability in AI-driven audit decisions.