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Benefits and Drawbacks of Incorporating ChatGPT in Financial Audits

Angel R. Otero & Michael Uzoma Agu

Current Issues in Auditing2025https://doi.org/10.2308/ciia-2024-016article
AJG 2ABDC B
Weight
0.41

Abstract

SUMMARY The purpose of this paper is to convey the authors’ perspective regarding the overall use of ChatGPT, a generative artificial intelligence tool, in financial audits. ChatGPT can provide audit efficiencies in data processing, continuous learning, predictive analytics, and cost-effectiveness. However, concerns arise when incorporating ChatGPT in these audits regarding data security and privacy, regulatory compliance, response reliability, industry-specific knowledge, and source data verification. This paper explores the literature and discusses benefits and drawbacks of incorporating ChatGPT in both external and internal financial audits. The paper also presents actionable takeaways for financial auditors to consider and/or implement in their respective audits. Despite the drawbacks highlighted in this paper, the efficiency gains from using ChatGPT in financial audits may outweigh the challenges, ultimately compelling auditors to increasingly rely on this technology in the completion of their financial audits. JEL Classifications: M42; M150.

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https://doi.org/https://doi.org/10.2308/ciia-2024-016

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@article{angel2025,
  title        = {{Benefits and Drawbacks of Incorporating ChatGPT in Financial Audits}},
  author       = {Angel R. Otero & Michael Uzoma Agu},
  journal      = {Current Issues in Auditing},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.2308/ciia-2024-016},
}

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Benefits and Drawbacks of Incorporating ChatGPT in Financial Audits

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Evidence weight

0.41

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.25 × 0.4 = 0.10
M · momentum0.55 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.