AI regulation within auditing? - The Implementation of the AI Act and its Effects in the Audit profession
(2024) BUSN79 20241Department of Business Administration
- Abstract
- Title: AI regulation within auditing? - The Implementation of the AI Act and its Effects in the Audit profession
Seminar date: May 29, 2024
Course: BUSN79, Master thesis in Accounting and Finance, 15 hp
Authors: Emilia Werner and Alva Tvede-Jensen
Advisor: Liesel Klemcke
Key words: Isomorphism, AI Act, sensemaking, AI, audit profession
Research question: “How is the audit profession adapting to the EU's AI Act and what effects will the regulation have on the use of AI within auditing?”
Purpose: The study aims to examine how the audit profession is adapting to the new AI Act and what effects the audit firms expect that the regulation will result in.
Methodology: The study employs a qualitative method to gain understanding of the... (More) - Title: AI regulation within auditing? - The Implementation of the AI Act and its Effects in the Audit profession
Seminar date: May 29, 2024
Course: BUSN79, Master thesis in Accounting and Finance, 15 hp
Authors: Emilia Werner and Alva Tvede-Jensen
Advisor: Liesel Klemcke
Key words: Isomorphism, AI Act, sensemaking, AI, audit profession
Research question: “How is the audit profession adapting to the EU's AI Act and what effects will the regulation have on the use of AI within auditing?”
Purpose: The study aims to examine how the audit profession is adapting to the new AI Act and what effects the audit firms expect that the regulation will result in.
Methodology: The study employs a qualitative method to gain understanding of the practical implications of the AI Act for the audit profession. The data consists of semi-structured interviews made with eight different people from five different companies.
Theoretical perspectives: Institutional Theory, Sensemaking theory
Empirical foundation: The empiricism shows that all examined audit firms have started to analyze how the AI Act should be implemented and what its effects are expected to be. The results indicate that the differences in the adoption of the AI Act can be explained by how far they have come in making sense of the regulation together with the degree of regulations that has to be followed. Additionally, the adoption is influenced by how the firms take inspiration from and collaborate with other companies or groups to disseminate knowledge.
Conclusions: The conclusions that have been made based on the analysis of the empirical material is that legal pressures drive initial adoption while informal pressures and cooperation will shape long-term implementation. Different roles within the audit profession influence how the companies perceive as well as integrate AI systems according to the AI Act. Even though the AI Act will give rise to challenges, it is viewed as a positive and necessary step to control AI development in the audit profession. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9167371
- author
- Tvede-Jensen, Alva LU and Werner, Emilia LU
- supervisor
- organization
- course
- BUSN79 20241
- year
- 2024
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Isomorphism, AI Act, sensemaking, AI, audit profession
- language
- English
- id
- 9167371
- date added to LUP
- 2024-08-07 16:55:56
- date last changed
- 2024-08-07 16:55:56
@misc{9167371,
abstract = {{Title: AI regulation within auditing? - The Implementation of the AI Act and its Effects in the Audit profession
Seminar date: May 29, 2024
Course: BUSN79, Master thesis in Accounting and Finance, 15 hp
Authors: Emilia Werner and Alva Tvede-Jensen
Advisor: Liesel Klemcke
Key words: Isomorphism, AI Act, sensemaking, AI, audit profession
Research question: “How is the audit profession adapting to the EU's AI Act and what effects will the regulation have on the use of AI within auditing?”
Purpose: The study aims to examine how the audit profession is adapting to the new AI Act and what effects the audit firms expect that the regulation will result in.
Methodology: The study employs a qualitative method to gain understanding of the practical implications of the AI Act for the audit profession. The data consists of semi-structured interviews made with eight different people from five different companies.
Theoretical perspectives: Institutional Theory, Sensemaking theory
Empirical foundation: The empiricism shows that all examined audit firms have started to analyze how the AI Act should be implemented and what its effects are expected to be. The results indicate that the differences in the adoption of the AI Act can be explained by how far they have come in making sense of the regulation together with the degree of regulations that has to be followed. Additionally, the adoption is influenced by how the firms take inspiration from and collaborate with other companies or groups to disseminate knowledge.
Conclusions: The conclusions that have been made based on the analysis of the empirical material is that legal pressures drive initial adoption while informal pressures and cooperation will shape long-term implementation. Different roles within the audit profession influence how the companies perceive as well as integrate AI systems according to the AI Act. Even though the AI Act will give rise to challenges, it is viewed as a positive and necessary step to control AI development in the audit profession.}},
author = {{Tvede-Jensen, Alva and Werner, Emilia}},
language = {{eng}},
note = {{Student Paper}},
title = {{AI regulation within auditing? - The Implementation of the AI Act and its Effects in the Audit profession}},
year = {{2024}},
}