INTELLIGENT AUDITING: THE ROLE OF AI IN DETECTING FINANCIAL FRAUD

Abstract

As financial systems become increasingly complex and data-driven, the traditional methods of auditing are often insufficient in detecting sophisticated fraud schemes. This paper explores the transformative role of Artificial Intelligence (AI) in the domain of intelligent auditing, focusing on its application in financial fraud detection. It examines how machine learning algorithms, anomaly detection techniques, and natural language processing can analyze vast amounts of financial data in real time to identify patterns indicative of fraudulent behavior. The study also discusses the integration of AI with existing auditing frameworks, highlighting both the benefits—such as improved efficiency, accuracy, and early detection—and the challenges, including ethical concerns, data privacy, and the need for regulatory compliance. Through case studies and empirical evidence, the paper demonstrates how AI is reshaping the auditing profession and enhancing the reliability and transparency of financial reporting.