The Relationship Between AI and Audit Planning in Emerging Economies: Does Audit Firm Size Matter?

Abstract

This study investigates the influence of artificial intelligence (AI) adoption on the effectiveness of audit planning in the dynamic Egyptian business environment, with a focus on the moderating role of audit firm size. Using a 2 × 2 factorial experimental design, we conducted a field experiment with a purposive sample of 130 auditors, comprising 65 participants from Big 4 firms and 65 from non-Big 4 firms. Our findings confirm a significant positive association between AI adoption and audit planning effectiveness, which was measured across dimensions such as risk identification, efficiency, and clarity. The results further reveal a significant moderating effect of audit firm size, where the positive impact of AI on planning effectiveness is notably more pronounced in large audit firms. These findings, corroborated by sensitivity analyses, provide empirical support for Contingency Theory and the UTAUT. The study contributes to the literature by offering evidence from an emerging economy. It provides critical implications for regulators, audit firms, and accounting educators regarding the integration and governance of AI in auditing.