ARTIFICIAL INTELLIGENCE AND INTERNAL AUDIT STAFFING PRACTICES: NECESSITATING A DIFFERENT SKILL SET FROM AUDITORS

Abstract

A decade ago, no machine matched human skills in many areas, but now AI surpasses humans in at least some skill sets. Internal auditors' effectiveness and value addition to organizations hinges critically on their possession of essential skills like risk management, independence, and deep knowledge of internal controls, along with their professional training and ability to align audit plans with organizational goals. Thus, it is important in the literature to highlight the need to understand the relative importance of internal auditor skills, their practical application in the selection, hiring, training, and promotion processes, and the consideration of additional skills or factors that may impact the application of these skills. However, the necessity for auditors to adapt and acquire new skills to meet the evolving requirements of technology, particularly AI, has not been discussed before. There are two main skill sets that are important for internal auditors: perceived behavioral, sometimes called soft, and cognitive, sometimes called hard, skills. Consequently, this text will discuss the changing skill sets and sub-categories of competent internal auditors according to AI. The study’s findings contribute to professional practice and literature by understanding and improving internal auditors’ skills, elevating performance, and streamlining risk assessment processes.