Abstract: The rapid growth of Artificial Intelligence (AI) and automation technologies is transforming the auditing landscape, giving new options for boosting audit quality, efficiency, and accuracy. This essay examines the potential and difficulties that the auditing profession faces as a result of automation and artificial intelligence. Integrating intelligent technologies has made it possible for auditors to process vast amounts of data at previously unheard-of speeds, spot irregularities, evaluate risks more precisely, and offer more in-depth analyses of operational and financial performance. By switching from sample-based audits to full-population testing and continuous auditing procedures, these capabilities are completely changing conventional audit approaches. Routine processes like data extraction, reconciliation, and report preparation are being automated with the use of AI-driven technologies including robotic process automation (RPA), machine learning techniques, and natural language processing (NLP). The value of audit services is raised by this automation, which frees up auditors to concentrate on more strategic and judgment-intensive tasks. Additionally, proactive risk management and early fraud detection are made possible by predictive analytics, which raises the efficacy of audits. However, there are a number of difficulties that come with incorporating automation and artificial intelligence into auditing. Data privacy, algorithmic bias, ethical ramifications, and the requirement for legislative frameworks to keep up with technical advancements are among the main issues. To properly use these technologies while retaining professional skepticism and judgment, auditors also need to develop new competences in data science, AI ethics, and IT controls. Since auditors must The ramifications for audit firms, clients, and regulatory agencies are also covered in this paper, emphasizing the necessity of making calculated investments in personnel development, technology infrastructure, and change management..In summary, automation and artificial intelligence (AI) are strategic enablers that have the ability to completely transform the audit profession rather than just being instruments for increasing operational efficiency. A forward-thinking attitude among stakeholders, ongoing innovation, and ethical considerations are necessary for their successful integration. Adopting these technologies will be essential as the auditing landscape changes in order to maintain relevance, resilience, and trust in a data-driven future.

Keywords: Artificial Intelligence (AI), Automation, Auditing Transformation

| DOI: 10.17148/IARJSET.2025.12506