External auditors’ perceptions toward the use of artificial intelligence in the audit process and ethical challenges facing its application: Evidence from an emerging market

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Abstract

The study explores the stages of the audit process to be improved through the implementation of artificial intelligence (AI) technology in an emerging setting. The study provides empirical evidence for the ethical challenges expected to arise from AI implementation. A survey method using structured questionnaires is employed. A questionnaire was administered to a sample of auditors working in international audit firms, including the Big 4, and 103 responses were collected. Using a t-test, the findings show that the client’s acceptance phase and reporting phase are among the most audit phases to be improved. The findings provide empirical evidence of a prior projection that AI implementation in the audit field may negatively impact auditors’ due professional care, competence level, and their professional judgment. However, the findings did not support the notion of prior studies that AI may impair auditors’ independence, accountability, or even their commitment to their careers. The findings have implications for auditors, regulators, and standard setters, especially in environments that lack effective regulatory frameworks and sanction mechanisms.

Keywords: Artificial Intelligence, Egypt, Audit Process, Ethics

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: G34, M41, M42

Received: 13.04.2025
Revised: 05.06.2025; 20.06.2025
Accepted: 30.06.2025
Published online: 02.07.2025

How to cite this paper: Kamareldawla, N. M. (2025). External auditors’ perceptions toward the use of artificial intelligence in the audit process and ethical challenges facing its application: Evidence from an emerging market. Corporate Ownership & Control, 22(2), 171–184. https://doi.org/10.22495/cocv22i2art16