Trustworthy AI and Trust in Audit: between Prudence and Reputational Risks
In this article the authors explore the matching between the theory and practice of trust in audit and trustworthiness of Artificial Intelligence (AI). While AI does not have a theory of its own, it is an instrument that contributes to theory testing and has conceptual lenses of its own. The curren...
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| Format: | Article |
| Language: | English |
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Editura ASE
2024-07-01
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| Series: | Revista de Management Comparat International |
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| Online Access: | https://www.rmci.ase.ro/no25vol3/05.pdf |
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| author | Cătălin Paul PĂCURARU-IONESCU Răzvan HOINARU |
| author_facet | Cătălin Paul PĂCURARU-IONESCU Răzvan HOINARU |
| author_sort | Cătălin Paul PĂCURARU-IONESCU |
| collection | DOAJ |
| description | In this article the authors explore the matching between the theory and practice of trust in audit and trustworthiness of Artificial Intelligence (AI). While AI does not have a theory of its own, it is an instrument that contributes to theory testing and has conceptual lenses of its own. The currently existing narrow AI has its limits in connecting to audit services. Document processing, data collection and structuring are among the possible functions, however, human supervision is needed as much as professional judgement. The effects of using AI in auditing practice are not clear yet and how reputational risk and independence are affected will be explored. Also, uncertainty dominates the cost benefits analysis in using AI powered technology and services in audits. There is a supply and demand of services in audit and advancements that go hand in hand with regulation of safety, consumer protection and sustainability. Both AI behaviour and audit practice are a matter of socially constructed functions where peer to peer review plays a great role in markets in terms of reputational risks and independence. |
| format | Article |
| id | doaj-art-de787718bc8a4fa4b65c7df4208431da |
| institution | OA Journals |
| issn | 1582-3458 2601-0968 |
| language | English |
| publishDate | 2024-07-01 |
| publisher | Editura ASE |
| record_format | Article |
| series | Revista de Management Comparat International |
| spelling | doaj-art-de787718bc8a4fa4b65c7df4208431da2025-08-20T01:52:37ZengEditura ASERevista de Management Comparat International1582-34582601-09682024-07-0125348849810.24818/RMCI.2024.3.488Trustworthy AI and Trust in Audit: between Prudence and Reputational RisksCătălin Paul PĂCURARU-IONESCU0Răzvan HOINARU1Bucharest University of Economic Studies, RomaniaBucharest University of Economic Studies, Romania; National Standardisation Body of RomaniaIn this article the authors explore the matching between the theory and practice of trust in audit and trustworthiness of Artificial Intelligence (AI). While AI does not have a theory of its own, it is an instrument that contributes to theory testing and has conceptual lenses of its own. The currently existing narrow AI has its limits in connecting to audit services. Document processing, data collection and structuring are among the possible functions, however, human supervision is needed as much as professional judgement. The effects of using AI in auditing practice are not clear yet and how reputational risk and independence are affected will be explored. Also, uncertainty dominates the cost benefits analysis in using AI powered technology and services in audits. There is a supply and demand of services in audit and advancements that go hand in hand with regulation of safety, consumer protection and sustainability. Both AI behaviour and audit practice are a matter of socially constructed functions where peer to peer review plays a great role in markets in terms of reputational risks and independence.https://www.rmci.ase.ro/no25vol3/05.pdfartificial intelligencefintechaudit trustreputational risk |
| spellingShingle | Cătălin Paul PĂCURARU-IONESCU Răzvan HOINARU Trustworthy AI and Trust in Audit: between Prudence and Reputational Risks Revista de Management Comparat International artificial intelligence fintech audit trust reputational risk |
| title | Trustworthy AI and Trust in Audit: between Prudence and Reputational Risks |
| title_full | Trustworthy AI and Trust in Audit: between Prudence and Reputational Risks |
| title_fullStr | Trustworthy AI and Trust in Audit: between Prudence and Reputational Risks |
| title_full_unstemmed | Trustworthy AI and Trust in Audit: between Prudence and Reputational Risks |
| title_short | Trustworthy AI and Trust in Audit: between Prudence and Reputational Risks |
| title_sort | trustworthy ai and trust in audit between prudence and reputational risks |
| topic | artificial intelligence fintech audit trust reputational risk |
| url | https://www.rmci.ase.ro/no25vol3/05.pdf |
| work_keys_str_mv | AT catalinpaulpacuraruionescu trustworthyaiandtrustinauditbetweenprudenceandreputationalrisks AT razvanhoinaru trustworthyaiandtrustinauditbetweenprudenceandreputationalrisks |