What does this research mean for the field?

Higher levels of artificial intelligence application within a firm are associated with longer audit report issuance times, reflecting greater business and technical complexity for auditors. Novelty: ClaimNovelty.NOVEL_FINDING. Consensus alignment: ConsensusAlignment.CHALLENGES_CONSENSUS.

What question did this study set out to answer?

To evaluate the relationship between corporate artificial intelligence application level (AIAL) and audit efficiency, and to determine whether auditor expertise and managerial technological governance moderate this association.

August 22, 2026Total Quality Management & Business Excellence

The level of artificial intelligence application and audit efficiency

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YZYongjie Zhu SJShanyue Jin

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Overview

Empirical panel analysis finds that higher artificial intelligence application levels increase audit report lag in listed firms, indicating that emerging technological complexity expands audit burden.

Key Points

To evaluate the relationship between corporate artificial intelligence application level (AIAL) and audit efficiency, and to determine whether auditor expertise and managerial technological governance moderate this association.
Analyzed 36,582 firm-year observations across 4,931 Chinese A-share listed firms from 2015 to 2024 using firm fixed effects and year fixed effects regression models.
Quantified AIAL through logarithmic transformation of keyword disclosure frequencies (e.g., artificial intelligence, machine learning, deep learning, intelligent algorithms) from annual report texts.
Measured audit efficiency by audit report lag, defined as the duration between fiscal year-end and the audit report signing date.
Higher AIAL disclosure intensity is positively associated with longer audit report issuance lag, reflecting greater technical complexity and operational risk during audits.
The increase in audit report lag associated with AIAL is significantly attenuated in firms audited by Big Four accounting firms and in firms whose executive teams possess stronger information technology backgrounds.
Robustness analyses using alternative audit efficiency metrics, lagged AIAL variables, and industry fixed effects confirm the core findings.

Cite This Study

Zhu et al. (2026) studied this question.

synapsesocial.com/papers/6a895f87ca7ade938187e375 https://doi.org/10.1080/14783363.2026.2718744

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August 22, 2026Total Quality Management & Business Excellence

The level of artificial intelligence application and audit efficiency

View Full Paper

Ask AI

Bookmark

Authors

YZYongjie Zhu SJShanyue Jin

Discussion

Member takes

Overview

Key Points

To evaluate the relationship between corporate artificial intelligence application level (AIAL) and audit efficiency, and to determine whether auditor expertise and managerial technological governance moderate this association.
Analyzed 36,582 firm-year observations across 4,931 Chinese A-share listed firms from 2015 to 2024 using firm fixed effects and year fixed effects regression models.
Quantified AIAL through logarithmic transformation of keyword disclosure frequencies (e.g., artificial intelligence, machine learning, deep learning, intelligent algorithms) from annual report texts.
Measured audit efficiency by audit report lag, defined as the duration between fiscal year-end and the audit report signing date.
Higher AIAL disclosure intensity is positively associated with longer audit report issuance lag, reflecting greater technical complexity and operational risk during audits.
The increase in audit report lag associated with AIAL is significantly attenuated in firms audited by Big Four accounting firms and in firms whose executive teams possess stronger information technology backgrounds.
Robustness analyses using alternative audit efficiency metrics, lagged AIAL variables, and industry fixed effects confirm the core findings.

Cite This Study

Zhu et al. (2026) studied this question.

synapsesocial.com/papers/6a895f87ca7ade938187e375 https://doi.org/10.1080/14783363.2026.2718744

View Full Paper

Ask AI

Bookmark