Auditors’ Decision-Making Accuracy: The Impact of Big Data and Artificial Intelligence
Keywords:
Auditing, Auditors’ decision, making accuracy, big data, artificial intelligence, financial transparencyAbstract
Objective: This study aimed to determine the effects of big data and artificial intelligence on auditors’ decision-making accuracy and their ability to detect fraud in the financial statements of companies listed on the Iraq Stock Exchange.
Methodology: This applied study employed a quantitative descriptive–survey design. The statistical population comprised independent auditors, internal auditors, and financial managers working in companies listed on the Iraq Stock Exchange. Questionnaires were distributed through a census approach, and data obtained from 154 valid questionnaires were included in the final analysis. Data were collected using a 42-item questionnaire developed from standardized instruments and researcher-designed items. The instrument used a five-point Likert scale and measured the application of big data, the use of artificial intelligence in auditing, the quality of auditors’ judgments, and auditors’ decision-making accuracy. Content validity was evaluated and confirmed by academic and professional experts in accounting, auditing, and data analytics. Internal consistency and construct reliability were assessed using Cronbach’s alpha and composite reliability coefficients. The data were analyzed through correlation analysis, regression analysis, and partial least squares structural equation modeling.
Findings: Structural equation modeling demonstrated that artificial intelligence had a positive and statistically significant effect on auditors’ decision-making accuracy (β=0.76, p<0.001). Big data also exerted a positive and statistically significant effect on auditors’ decision-making accuracy (β=0.81, p<0.001). The t-values associated with the hypothesized relationships exceeded the critical value of 1.96, confirming the study hypotheses. The coefficient of determination was R²=0.72, indicating that artificial intelligence and big data jointly explained 72% of the variance in auditors’ decision-making accuracy. The model demonstrated an acceptable fit, as indicated by CFI=0.96, TLI=0.94, and RMSEA=0.051.
Conclusion: The application of big data and artificial intelligence can substantially improve auditors’ professional judgments, anomaly identification, and financial fraud detection. Integrating these technologies into the Iraqi auditing system may enhance audit quality, financial transparency, and investor confidence. Effective implementation, however, requires appropriate technological infrastructure, reliable and integrated financial data, specialized auditor training, human oversight of algorithmic decisions, and regulatory frameworks protecting data security and confidentiality.
Downloads
References
Akbari, S. (2023). Investigating the Mediating Role of Neural Networks in Financial Fraud Detection on Auditors' Empowerment in Predicting Variables. Ninth National Congress of New Findings in Management and Industrial Engineering with Emphasis on Capability and Competitive Intelligence, Tehran.
Azarsaeid, Y., & Rostami, S. (2023). Artificial Intelligence and Ethical Decision-Making in Accounting and Auditing: An Analysis of Related Challenges. https://civilica.com/doc/1754581
Bao, Y., Hilary, G., & Ke, B. (2022). Artificial Intelligence and Fraud Detection. In Innovative Technology at the Interface of Finance and Operations: Volume I (pp. 223-247). https://doi.org/10.1007/978-3-030-75729-8_8
Bose, S., Dey, S. K., & Bhattacharjee, S. (2023). Big Data, Data Analytics and Artificial Intelligence in Accounting: An Overview. In Handbook of Big Data Research Methods (pp. 32-51). https://doi.org/10.4337/9781800888555.00007
Dashti, M., & Mirzaei, A. (2023). A Study of Methods for Improving the Accuracy of Financial Auditors' Decision-Making. Seventh National Conference on New Horizons in Humanities, Economics, and Entrepreneurship, Tehran.
Ershadi Chahardeh, S., Seadatee Shamir, A., & Zabihi, R. (2024). The Effectiveness of Lumosity-Based Cognitive Empowerment on Maher Fluid Intelligence and Cognitive Functions in Elementary School Boys. International Journal of Education and Cognitive Sciences, 5(3), 86-93. https://doi.org/10.61838/kman.ijecs.5.3.11
Ghadimpour, J., Behkish Noushahr, N., & Mirzaei, A. (2023). Auditors' Decision-Making Accuracy in Financial Transactions Using Performance Analysis and Data Mining Methods. Seventh National Conference on New Horizons in Humanities, Economics, and Entrepreneurship, Tehran.
Ghadimpour, J., Safari, A., & Mirzaei, A. (2023). Analysis of the Fraud Triangle in Detecting Fraudulent Financial Statements Using the Fraud Score Model. Seventh National Conference on New Horizons in Humanities, Economics, and Entrepreneurship, Tehran.
Haghi, S. (2024). Investigating the Determinants of Whistleblowing and Its Effect on Reducing Fraud in Financial Reports. First International Conference on Industrial Engineering, Management, Economics, and Accounting,
Handoko, B. L., Mulyawan, A. N., Tanuwijaya, J., & Tanciady, F. (2020). Big Data in Auditing for the Future of Data Driven Fraud Detection. International Journal of Innovative Technology and Exploring Engineering, 9(3), 2902-2907. https://doi.org/10.35940/ijitee.B7568.019320
Heydari Heratmeh, M., & Araei, V. (2023). Decision-Making and Policy Influenced by Audit Committee Recommendations and Characteristics. https://civilica.com/doc/1756478
Kalaharipour, Z., Hajiha, Z., & Shirvani, J. (2023). Identifying Fraud Factors in Financial Reporting of Banks Listed on the Stock Exchange. Eighth International Conference on Management, Accounting, Economics, and Social Sciences, Hamedan.
Kılıç, B. İ. (2020). The Effects of Big Data on Forensic Accounting Practices and Education. In Contemporary Issues in Audit Management and Forensic Accounting (pp. 11-26). Emerald Publishing Limited. https://doi.org/10.1108/S1569-375920200000102005
Li, J. (2022). E-Commerce Fraud Detection Model by Computer Artificial Intelligence Data Mining. Computational Intelligence and Neuroscience, 2022. https://doi.org/10.1155/2022/8783783
Nazifi, Z., Mehrazin, A., Masihabadi, A., & Zendehdel, A. (2023). Ego Depletion in Auditing: Auditors' Judgment Quality and Decision-Making. Fourth International Conference on Innovation in Business Management and Economics, Tehran.
Nemati, B. (2022). A Study of Supervision, Managers' Decision-Making, and Auditors' Professional Commitment on Audit Quality. https://civilica.com/doc/1842229
Rahdar, P., & Ghasemi Alvari, A. (2023). Using Big Data Analytics to Detect Patterns of Fraud and Financial Abuse. Seventh International Conference on Third Millennium Knowledge and Technology in Iranian Economics, Management, and Accounting, Tehran.
Rezaee, Z., Wang, J., & Lam, B. (2018). Toward the Integration of Big Data into Forensic Accounting Education. Journal of Forensic and Investigative Accounting, 10(1), 87-99.
Salimian Ziri, M. (2023). The Effect of Accounting Ethics on Fraud Prevention in the Banking System. Sixteenth International Conference on New Research in Management, Economics, Accounting, and Banking,
Seadatee Shamir, A. (2023). Comparison Short Term Memory, Reading Performance and Academic Achievement of Early Bilingual and Monolinguals. Journal of Psychological Dynamics in Mood Disorders. https://www.sid.ir/fileserver/je/39911-284242-x-1363725.pdf
Seadatee Shamir, A. (2024). The Effectiveness of Teaching Math Skills on Increasing the Crystallized Intelligence of Secondary School Students of Shahed Schools. Journal of Psychological Dynamics in Mood Disorders. https://sid.ir/fileserver/je/39911-284245-x-1363769.pdf
Seadatee Shamir, A. (2025). Standardization of the Five-Factor Model of the Maher Multifaceted Fluid Test of Intelligence (MMFTI) for Fourth to Sixth-Grade Students (First Version) Based on Metacognition Theory. International Journal of Body, Mind and Culture, 12(1), 188-200. https://doi.org/10.61838/ijbmc.v12i1.408
Seadatee Shamir, A., & Mousavi Fazl, A. I. (2022). The Effectiveness of Teaching Perceptual Skills and Skilled Attention Skills in Reducing Attention Disorders in Students with Attention Disorders. Quran and Medicine, 7(3), 181-196. https://sid.ir/fileserver/jf/3004014010321.pdf
Seadatee Shamir, A., & Zahamatkesh, Y. (2022). Introducing a Test: Construction and Standardization of the First Version of Maher Multifunctional Fluid Intelligence Test (MMFIT) for Children Age 7 to 9 Years Old. Journal of Childhood Health and Education, 3(2), 57-84. http://jeche.ir/article-1-85-en.html
Shahbazi, Z., Karimi Bagh Malek, A., & Seadatee Shamir, A. (2023). Investigating the Affecting Scientific Factors on the Moral Education of Senior School Female Students and Presenting a Pattern. Iranian Journal of Educational Society, 9(2), 389-399. https://www.jedusocio.com/index.php/se/article/view/392
Shahnazari, E., & Baloochi, Z. (2023). Presenting a Model of Audit Quality and Decision-Making Judgment through Reflection on the Role of Digital Accounting Systems Success. First International Conference on Innovation, Growth, and Development in Management, Accounting, and Humanities,
Shalhoob, H., Halawani, B., Alharbi, M., & Babiker, I. (2024). The Impact of Big Data Analytics on the Detection of Errors and Fraud in Accounting Processes. RGSA: Revista de Gestão Social e Ambiental, 18(1). https://doi.org/10.24857/rgsa.v18n1-121
Shams, S., Seadatee Shamir, A., & Sadat Kazemi, A. (2025). Psychometric Properties and Standardization of the Maher Multiple Fluid Intelligence Test (MMFTI) in Students Aged 4 to 6. Quarterly of Experimental and Cognitive Psychology, 2(2), 106-131. https://doi.org/10.61838/qecp.408
Shaterdalal Yazdi, A., Seadatee Shamir, A., Asadzadeh, H., & Abolmaali Alhosseini, K. (2022). The Effectiveness of Positive Intelligence Training on Character Strengths and Life Meaning of the Elementary Teachers. Psychological Achievements, 29(1), 79-96. https://doi.org/10.22055/psy.2022.38108.2724
Shaterdalal Yazdi, A., Seadatee Shamir, A., Asadzadeh, H., & Abolmaali, K. (2022). Determining the Effectiveness of Positive Intelligence Training on Emotional Intelligence and Flow Experience of the Elementary School Teachers. Middle Eastern Journal of Disability Studies. https://sid.ir/paper/1124351/en
Shoetan, P. O., Oyewole, A. T., Okoye, C. C., & Ofodile, O. C. (2024). Reviewing the Role of Big Data Analytics in Financial Fraud Detection. Finance & Accounting Research Journal, 6(3), 384-394. https://doi.org/10.51594/farj.v6i3.899
Zayed, L. M. M., Nour, M. I., Al Attar, K., Almubideen, H., & Abdelaziz, G. A. M. (2024). Role of Artificial Intelligence in Accounting Information Systems in Detecting Fraud. In Artificial Intelligence and Economic Sustainability in the Era of Industrial Revolution 5.0 (pp. 397-409). Springer Nature Switzerland. https://doi.org/10.1007/978-3-031-56586-1_30
Zelli, M. H., Seadatee Shamir, A., & Kazemi, A. (2024). Effectiveness of Psycho-Educational Intervention of Maher Crystallized Intelligence on Increasing Socio-Cultural Intelligence in Elementary Second Period Students of Tehran City. Sociology of Education, 10(3), 275-288. https://doi.org/10.22034/ijes.2021.541983.1184
Zelli, M. H., Seadatee Shamir, A., & Kazemi, A. (2025). The Effectiveness of the Maher Crystallized Intelligence Educational-Psychological Intervention on Enhancing Fluid Intelligence and Socio-Cultural Intelligence. Mental Health and Lifestyle Journal, 3(1), 1-14. https://doi.org/10.61838/mhlj.3.1.3
Downloads
Publication Timeline
- Submitted
- Revised
- Accepted
Issue
Section
License
Copyright (c) 1404 Ebrahim Anwar Ebrahim Al-Khazarji, Ali Taghavi Moghadam, Ali Hossein Mahavash, Reza Gholami-Jamkarani, Mohsen Rahimi Dastjerdi (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
