AI-Driven Fraud Detection Enhancing Financial Auditing Efficiency and Ensuring Improved Organizational Governance Integrity

• Author(s): Omoize Fatimetu Dako ; Temilola Aderonke Onalaja ; Priscilla Samuel Nwachukwu ; Folake Ajoke Bankole ; Tewogbade Lateefat
• Paper ID: 1710454
• Page: 556-577
• Published Date: 31-05-2019
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 2 Issue 11 May-2019

Abstract

The rapid evolution of artificial intelligence (AI) has significantly transformed financial auditing practices, particularly in the area of fraud detection, where traditional methods often fall short in addressing the complexity and speed of modern financial transactions. This study examines the role of AI-driven fraud detection in enhancing auditing efficiency and strengthening organizational governance integrity. By leveraging advanced machine learning algorithms, natural language processing, and anomaly detection models, AI systems can process vast volumes of structured and unstructured financial data with unprecedented accuracy and speed. These systems not only identify irregularities and hidden patterns that human auditors may overlook but also adapt continuously to evolving fraudulent schemes, thereby ensuring proactive rather than reactive fraud management. The integration of AI into auditing workflows enhances efficiency by automating repetitive tasks, reducing human error, and freeing auditors to focus on higher-level analytical and strategic functions. Moreover, AI-driven insights contribute to more reliable risk assessment, robust internal controls, and improved transparency, which collectively reinforce corporate governance practices. Importantly, AI-supported fraud detection fosters accountability and ethical compliance by providing real-time monitoring, predictive analytics, and evidence-based decision-making tools. While challenges such as data privacy concerns, algorithmic bias, and the need for regulatory alignment remain, the potential benefits for organizations, regulators, and stakeholders are transformative. This paper argues that AI-driven fraud detection does not replace human judgment but complements it, creating a synergistic framework where auditors and intelligent systems collaborate to strengthen organizational resilience. Ultimately, adopting AI technologies in auditing serves not only as a strategic imperative for fraud prevention but also as a cornerstone for sustainable governance integrity in an increasingly digitized financial ecosystem. The findings highlight the necessity of aligning AI adoption with ethical standards, training, and governance frameworks to ensure trustworthiness, accountability, and long-term success in financial auditing.

Keywords

Artificial Intelligence, Fraud Detection, Financial Auditing, Machine Learning, Governance Integrity, Anomaly Detection, Risk Assessment, Organizational Accountability, Predictive Analytics, Corporate Governance.

Citations

IRE Journals:
Omoize Fatimetu Dako , Temilola Aderonke Onalaja , Priscilla Samuel Nwachukwu , Folake Ajoke Bankole , Tewogbade Lateefat "AI-Driven Fraud Detection Enhancing Financial Auditing Efficiency and Ensuring Improved Organizational Governance Integrity" Iconic Research And Engineering Journals Volume 2 Issue 11 2019 Page 556-577

IEEE:
Omoize Fatimetu Dako , Temilola Aderonke Onalaja , Priscilla Samuel Nwachukwu , Folake Ajoke Bankole , Tewogbade Lateefat "AI-Driven Fraud Detection Enhancing Financial Auditing Efficiency and Ensuring Improved Organizational Governance Integrity" Iconic Research And Engineering Journals, 2(11)