Artificial Intelligence in Auditing: Transforming the Future of Accounting

Boomika G; Mamdha Sri G; Feon Jaison; Indrajith K S; Rohit Sonawane

doi:10.55524/ijirem.2026.13.2.13

Abstract

The increasing dependence of businesses on digital systems has contributed to an explosion in the number of financial transactions being carried out by organizations. This has necessitated a need to evolve auditing practices since the traditional methods have become obsolete due to their heavy dependence on manual testing and sampling. Thus, there is a need to adopt more efficient auditing processes. This research paper discusses the application of Artificial Intelligence (AI) to facilitate auditing. An intelligent system for analyzing anomalies using machine learning techniques like random forest is developed and applied to financial transactions. Transaction and behavioral data are used to detect any abnormal transactions. The model adopted is suitable for SMEs in India which lack access to sophisticated audit systems. The results obtained reveal that AI-based auditing processes help to minimize fraud detection time and improve the accuracy of the process. The system also facilitates continuous monitoring, which helps to mitigate potential risks early before they materialize. Overall, AI has helped to revolutionize auditing in order to cope with emerging digital financial trends.

Keywords

Artificial Intelligence, Financial Auditing, Machine Learning, Anomaly Detection, FinTech, Digital Accounting

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Cites this article as

B. G, M. S. G, F. Jaison, I. K. S, R. Sonawane, "Artificial Intelligence in Auditing: Transforming the Future of Accounting ", International Journal of Innovative Research in Engineering and Management (IJIREM), Vol-13, Issue-2, Page No-88-102, 2026. Available from: https://doi.org/10.55524/ijirem.2026.13.2.13