20 March 2026

Photo: Privat

In a study published in the Journal of Information Systems, Jette Fabian and Prof. Dr Nicole Ratzinger-Sakel examined the extent to which AI solutions can support the audit process.

Does the use of task-specific artificial intelligence (AI) in auditing – taking the audit of management reports as an example – lead to a higher perceived audit quality and perceived efficiency gains? These are the questions addressed in a recent paper by Jette Fabian and Nicole Ratzinger-Sakel, Professor of Auditing and Financial Reporting, which was recently published in the Journal of Information Systems. The study is based on a survey of experienced auditors at a German Big 4 audit firm.

Whilst the audit of management reports has traditionally relied on a manual, checklist-based approach, the AI system under investigation integrates key work steps into a digital platform. It identifies relevant passages in the management report and links them to the corresponding statutory disclosure requirements, enabling auditors to review and document targeted suggestions for specific passages. Furthermore, the bidirectional linking of requirements and text passages enables more structured navigation and potentially greater traceability. Furthermore, the AI offers functions for checking for calculation errors, highlighting changes between report versions, and supporting collaboration within the audit team, for example through integrated documentation, task allocation and review functions in line with the dual-control principle. The AI does not replace professional judgement, but is designed to support key audit steps.

“The results paint a mixed picture,” says Jette Fabian. “Generally speaking, auditors view the use of such AI solutions positively. Particularly when it comes to standardised tasks, AI can help make audit processes more efficient whilst improving the quality of the results.” Routine tasks could be sped up, whilst auditors would gain more time for more demanding analyses. “At the same time, the technology reaches its limits when it comes to more complex, qualitative issues,” explains the research assistant. “The assessment of discretionary leeway, linguistic nuances or strategic statements in the management report remains dependent on human expertise.”

Another finding of the study is that perceptions of and acceptance towards AI depend on individual factors. “Professional position, work experience and, in particular, involvement in digital transformation processes influence how auditors assess the benefits of AI,” says Prof. Ratzinger-Sakel. Whilst some highlight gains in quality and efficiency, others express concerns, particularly regarding a potential over-reliance on AI results and possible loss of skills.

The authors draw practical implications from the study’s findings. The successful deployment of AI requires not only technological solutions, but also targeted training programmes, clear communication regarding the opportunities and risks, and the strategic involvement of staff in the digital transformation of the financial statement audit.

You can read the full article here:

https://publications.aaahq.org/jis/article/doi/10.2308/ISYS-2025-054/23853/Auditing-Corporate-Disclosures-with-the-Assistance

This content has been translated automatically.