Examining the Influence of Expert Systems and Decision Support Systems on Auditing

Abstract

The face of auditing as a practice has evolved over the last decade, with technological advancement playing a vital role in this transformation. Artificial intelligence is one technological development that has influenced the auditing practice recently, with Decision Support Systems and Expert Systems being some of the main forms infiltrating the audit practice. These systems are expected to revolutionise 'auditors' performance of their core functions, consequently enhancing 'auditors' capabilities and boosting audit reports' independence, trustworthiness, and transparency. With a systematic literature review approach, this article reviewed empirical literature on how Decision Support Systems and Expert Systems have influenced global auditing. It was revealed that the deployment of Expert Systems in auditing improved the assessment of risks associated with financial reporting. Again, Expert Systems were useful in fraud detection, with the technology having the capability to identify fraudulent activities. Decision Support Systems were also seen in data management, improving the application of financial ratios in decision-making and monitoring ongoing auditing processes. The application of these systems was revealed to be crucial in identifying and eliminating inefficiency in businesses, thereby boosting productivity. This article, therefore, concludes that auditing practices across the world stand to benefit immensely if Decision Support Systems and Expert Systems are appropriately implemented. For this to be realised, auditors may need training on the various functionalities of the systems. Since the systems thrive on the value and nature of data fed into them, auditors may have to be meticulous with the nature of data provided in the system.