ACCOUNTING


Artificial Intelligence in Auditing: How Auditor AI Use


Can Mitigate Legal Liability Current Issues in Auditing, 19 (2), November 2025 LINK TO PAPER


ROBERT LIBBY


DAVID A. THOMAS PROFESSOR IN MANAGEMENT EMERITUS


Samuel Curtis Johnson Graduate School of Management


Cornell SC Johnson College of Business Cornell University


Co-authors • Robert Libby David A. Tomas Professor in Management Emeritus, Samuel


Curtis Johnson Graduate School of Management, Cornell SC Johnson College of Business, Cornell University


• Patrick D. Witz, University of Wyoming


Summary Audit firms are investing billions of dollars into artificial intelligence (AI) tech-


nology. Tese investments have the potential to transform the audit landscape and to improve the efficiency and effectiveness of audit processes. Tey might also result in wider benefits for audit firms, which can leverage this technolo- gy to reinforce perceived objectivity and trust in the audit.


Tis article summarizes a recent study that finds that the use of AI can help mitigate auditor liability by limiting the effects of the appearance of auditor independence conflicts on juror negligence assessments. Tis article discuss- es how these findings indicate a potential solution to a long-standing dilem- ma that audit firms have faced, in which they may desire to invest in favorable relationships with their audit clients while also being seen as performing objective and unbiased audit work.


CONTENTS TO MAIN


| RESEARCH WITH IMPACT: CORNELL SC JOHNSON COLLEGE OF BUSINESS • 2025 EDITION


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