IDEAS home Printed from https://ideas.repec.org/a/eme/majpps/maj-03-2020-2588.html
   My bibliography  Save this article

AI-based audit of fuzzy front end innovation using ISO56002

Author

Listed:
  • Rizwan Khan
  • Erwin Adi
  • Omar Hussain

Abstract

Purpose - This paper aims to develop an artificial intelligence (AI) audit tool for auditing text-based evidence and determine its efficiency and effectiveness. Design/methodology/approach - A manual audit checklist and an AI audit tool are developed with fuzzy front-end (FFE) from Innovation Management System Standard (IMSS) as the audit scope, First, a manual audit of five organisations is conducted to determine their compliance scores. The transcripts of the audit are recorded which are used by the AI audit tool to assign compliance scores for the same organisations. The effectiveness and efficiency of the AI audit tool are determined by comparing their results with the manual audit. Findings - This paper demonstrates the development of the FFE AI audit tool which led to 92% improved efficiency while being 95% effective compared to a human auditor. Practical implications - The publication of new financial and non-financial standards (such as ISO56002: IMSS) have implications for internal auditing (IA). The scope of IA must expand to include new standards while remaining efficient. Emerging technologies, such as AI help achieve this. Even though the use of AI in financial auditing is widely studied, it has not received similar attention in non-financial auditing. This paper develops a non-financial AI audit tool to audit an essential component of the IMSS, the FFE of innovation and determine its efficiency and effectiveness. Originality/value - The study develops an FFE AI audit tool for the first time. The methodology used has practical and academic implications for the use of AI in non-financial auditing.

Suggested Citation

  • Rizwan Khan & Erwin Adi & Omar Hussain, 2021. "AI-based audit of fuzzy front end innovation using ISO56002," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 36(4), pages 564-590, July.
    • Handle: RePEc:eme:majpps:maj-03-2020-2588
    DOI: 10.1108/MAJ-03-2020-2588
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/MAJ-03-2020-2588/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/MAJ-03-2020-2588/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/MAJ-03-2020-2588?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ravi Seethamraju & Angela Hecimovic, 2023. "Adoption of artificial intelligence in auditing: An exploratory study," Australian Journal of Management, Australian School of Business, vol. 48(4), pages 780-800, November.
    2. Diego Valentinetti & Michele A. Reaa, 2023. "Intelligenza artificiale e accounting: le possibili relazioni," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2023(2), pages 93-116.
    3. Fekadu Agmas Wassie & László Péter Lakatos, 2024. "Artificial intelligence and the future of the internal audit function," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-13, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:majpps:maj-03-2020-2588. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.