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With the intensity of the Fourth Industrial Revolution, Artificial Intelligence (AI) is being widely adopted to perform key tasks in economic activities. The audit profession has also embraced AI in the performance of its function in carrying out activities like audits, oversight, and advisory functions. The application of AI has been met with acceptance, given its advantages in some quarters and with resistance/scepticism in some. Proponents table benefits such as improved sampling procedures, reduced labour, and time in performing audits, increased efficiency, and effectiveness (due to increased audit coverage) including improved audit quality. Opponents raise pragmatic concerns such as the violation of ethical principles governing the audit profession, potential biases (loss of employment) as well as the challenges of coordinating machine and human activities. The study has two objectives. Firstly, to explore the role of AI in the external audit function. Secondly, to evaluate the ongoing debates on artificial intelligence and external auditing and assess the implications of using AI in the external audit function. The study adopts a qualitative research approach, employing a critical literature review. The study will accentuate the controversies and convergences among researchers on the role and implications of applying AI in external auditing to bring to light possible research gaps that can be explored by future researchers on the subject area. Highlighting the potential externalities of using AI has both theoretical and practical implications.

Robotic Process Automation (RPA) is transforming knowledge-intensive professional services; nevertheless, data from consulting ecosystems in emerging markets is still scarce. This study investigates the organisational and human-centric consequences of RPA implementation in consulting businesses in Johannesburg, South Africa, concentrating on company performance, job security, employee performance, and customer engagement. We performed reliability testing, rotational factor analysis, Pearson correlations, and multiple linear regression in SAS using a cross-sectional survey of 256 consulting staff. The results indicate a favourable correlation between RPA and employee performance as well as customer interaction, however no statistically significant link was found for business performance or job security. The paper provides context-specific empirical evidence about RPA within the South African consulting ecosystem, indicating that early value realisation may manifest through enhancements in worker efficiency and client interactions rather than immediate increases in firm-level performance. The findings underscore the necessity for change management, reskilling, and appropriate automation governance to maintain human-technology complementarity.

The adoption of digital technologies in external auditing has become increasingly common and significant in the digital era, revolutionizing audit practices and offering several opportunities. This study explores whether the application of digital technologies in external auditing presents a double-edged sword, with the ability to transform and disrupt the audit profession. Through a comprehensive examination of the likely opportunities and challenges of the digital transformation of the external audit function, this study sought to provide an insightful discussion of the dual nature of the implications of digital technologies. The aim of this study is to not only provide a balanced assessment of the application of digital technologies in external auditing but also to recommend possible ways for auditors, auditee companies, and other stakeholders to reap maximum benefits from the use of digital technologies, including how these various stakeholders can navigate the associated challenges effectively. Opportunities stemming from the application of digital technologies include the enhancement of audit quality, improved accuracy in audit procedures, increased efficiency and effectiveness, heightened comprehensiveness and extensiveness in risk assessment, and an increased degree of confidence in the audited financial statements by stakeholders (reduction in the audit expectation gap). On the downside, challenges and risks concern the lack of or the need for new skills and competencies for auditors, technological complexities linked to digital technologies, cybersecurity risks, overdependence on technology affecting audit quality, audit evidence, professional skepticism, and the widening of the audit expectation gap. To maximize the possible benefits and minimize risks, this study recommends continuous professional development, capacity building through education, training and collaboration, better technology and data governance initiatives, and continuous assessment of risks.

Robotic Process Automation (RPA) is transforming knowledge-intensive professional services; nevertheless, data from consulting ecosystems in emerging markets is still scarce. This study investigates the organisational and human-centric consequences of RPA implementation in consulting businesses in Johannesburg, South Africa, concentrating on company performance, job security, employee performance, and customer engagement. We performed reliability testing, rotational factor analysis, Pearson correlations, and multiple linear regression in SAS using a cross-sectional survey of 256 consulting staff. The results indicate a favourable correlation between RPA and employee performance as well as customer interaction, however no statistically significant link was found for business performance or job security. The paper provides context-specific empirical evidence about RPA within the South African consulting ecosystem, indicating that early value realisation may manifest through enhancements in worker efficiency and client interactions rather than immediate increases in firm-level performance. The findings underscore the necessity for change management, reskilling, and appropriate automation governance to maintain human-technology complementarity.

The adoption of digital technologies in external auditing has become increasingly common and significant in the digital era, revolutionizing audit practices and offering several opportunities. This study explores whether the application of digital technologies in external auditing presents a double-edged sword, with the ability to transform and disrupt the audit profession. Through a comprehensive examination of the likely opportunities and challenges of the digital transformation of the external audit function, this study sought to provide an insightful discussion of the dual nature of the implications of digital technologies. The aim of this study is to not only provide a balanced assessment of the application of digital technologies in external auditing but also to recommend possible ways for auditors, auditee companies, and other stakeholders to reap maximum benefits from the use of digital technologies, including how these various stakeholders can navigate the associated challenges effectively. Opportunities stemming from the application of digital technologies include the enhancement of audit quality, improved accuracy in audit procedures, increased efficiency and effectiveness, heightened comprehensiveness and extensiveness in risk assessment, and an increased degree of confidence in the audited financial statements by stakeholders (reduction in the audit expectation gap). On the downside, challenges and risks concern the lack of or the need for new skills and competencies for auditors, technological complexities linked to digital technologies, cybersecurity risks, overdependence on technology affecting audit quality, audit evidence, professional skepticism, and the widening of the audit expectation gap. To maximize the possible benefits and minimize risks, this study recommends continuous professional development, capacity building through education, training and collaboration, better technology and data governance initiatives, and continuous assessment of risks.

With the intensity of the Fourth Industrial Revolution, Artificial Intelligence (AI) is being widely adopted to perform key tasks in economic activities. The audit profession has also embraced AI in the performance of its function in carrying out activities like audits, oversight, and advisory functions. The application of AI has been met with acceptance, given its advantages in some quarters and with resistance/scepticism in some. Proponents table benefits such as improved sampling procedures, reduced labour, and time in performing audits, increased efficiency, and effectiveness (due to increased audit coverage) including improved audit quality. Opponents raise pragmatic concerns such as the violation of ethical principles governing the audit profession, potential biases (loss of employment) as well as the challenges of coordinating machine and human activities. The study has two objectives. Firstly, to explore the role of AI in the external audit function. Secondly, to evaluate the ongoing debates on artificial intelligence and external auditing and assess the implications of using AI in the external audit function. The study adopts a qualitative research approach, employing a critical literature review. The study will accentuate the controversies and convergences among researchers on the role and implications of applying AI in external auditing to bring to light possible research gaps that can be explored by future researchers on the subject area. Highlighting the potential externalities of using AI has both theoretical and practical implications.