Effect of Artificial Intelligence on Auditors’ Independence and Ethical Practices

on auditors’ independence and ethical practices. Artificial intelligence represents the independent variable of the study. However, auditors’ independence and ethical practices represent the dependent variable of the study and it was measured using auditor’s independence, ethical decision making and professional skepticism. To achieve the objective of the study, survey research design was adopted. The data were collected through questionnaire administration. The population of the study is made up of 100 staff of KPMG, Deloitte, PricewaterhouseCoopers and Ernst and Young (EY) all located in Lagos, Nigeria. However, the sample size of the study is 80 staff and was derived using convenience sampling. The data collected were analyzed using ordinary least simple regression analysis. The result revealed that artificial intelligence has a positive and significant effect on auditor’s independence, ethical decision making and professional skepticism. Based on the findings, the study concludes that artificial intelligence enhances both auditors’ independence and ethical practices. Therefore, the study recommends that Auditing firms should acknowledge the need for regulatory adaptation to keep pace with technological advancements, ensuring that AI complements rather than replaces human expertise. This would help in enhancing auditor’s independence. It is crucial for auditors and organizations to balance innovation with integrity when adopting AI in auditing. This means upholding ethical standards, ensuring the responsible use of AI, and prioritizing transparency, fairness, and accountability in audit practices. By doing so, auditors can leverage the benefits of AI while upholding the principles of integrity and ethical conduct.