Effect of Artificial Intelligence on Auditing Practice in Nigeria
TL;DR
This study examines the influence of Artificial Intelligence adoption on auditing practice within Nigeria’s public sector, focusing on its effects on audit efficiency, fraud detection capability, and audit quality and concludes that Artificial Intelligence should be viewed as an enabling technology that complements professional auditing judgment rather than replacing human auditors.
Abstract
The increasing complexity of public financial transactions, rising accountability expectations, and limitations associated with conventional audit approaches have created the need for innovative technologies capable of improving auditing effectiveness. Artificial Intelligence (AI) has emerged as a transformative technology with significant potential to reshape auditing practices through automation, advanced data analytics, predictive modelling, and intelligent decision support. This study examines the influence of Artificial Intelligence adoption on auditing practice within Nigeria’s public sector, focusing on its effects on audit efficiency, fraud detection capability, and audit quality. The study adopted a quantitative research approach using a structured questionnaire administered to public sector auditors and accounting professionals. Data were analysed using descriptive statistics, Pearson correlation, and multiple regression analysis. The findings revealed that Artificial Intelligence adoption has a significant positive influence on audit efficiency, fraud detection capability, and audit quality. The regression results showed that AI adoption significantly improves audit outcomes by enabling faster data analysis, enhancing risk identification, and strengthening the reliability of audit evidence. The study further revealed that while AI provides substantial opportunities for improving public sector accountability, challenges such as inadequate digital infrastructure, limited technological competencies, data governance concerns, and ethical issues may constrain effective implementation. The study concludes that Artificial Intelligence should be viewed as an enabling technology that complements professional auditing judgment rather than replacing human auditors. It recommends strategic investment in digital audit infrastructure, continuous AI-related capacity development for auditors, and the establishment of appropriate governance frameworks to support responsible AI adoption within Nigeria’s public sector auditing environment.