Impact of Artificial Intelligence and Auditing Practices in Nigeria: A Case Study of Champion Breweries in Uyo, Akwa Ibom State Establishment
Chapter One
Objective of the study
The main objective of this study is to examine the impact of Artificial Intelligence (AI) on auditing practices in Nigeria, using Champion Breweries Plc, Uyo, as a case study.
The specific objectives are to:
- Assess the extent to which Artificial Intelligence is adopted in the auditing practices of Champion Breweries Plc.
- Evaluate the impact of AI tools on the efficiency and accuracy of audit processes within the company.
- Identify the challenges faced by Champion Breweries Plc in implementing AI technologies in auditing.
- Determine the perceived benefits of AI adoption by auditors and management in Champion Breweries.
CHAPTER TWO
REVIEW OF RELATED LITERTURE
Artificial Intelligence
Artificial Intelligence (AI) refers to the simulation of human intelligence in machines that are programmed to think, learn, and solve problems. These systems are designed to mimic cognitive functions such as learning, reasoning, problem-solving, perception, and decision-making, allowing computers to perform tasks that typically require human intelligence (Russell & Norvig, 2021). In recent years, AI has emerged as a transformative force across various sectors, including healthcare, education, manufacturing, and more recently, accounting and auditing.
AI encompasses a broad set of technologies such as machine learning, natural language processing (NLP), robotic process automation (RPA), and expert systems. These tools have the capability to process vast amounts of data at high speed and with high precision, allowing for improved decision-making and operational efficiency (Haenlein & Kaplan, 2019).
In the field of auditing, AI plays a crucial role in enhancing the efficiency, accuracy, and reliability of audit processes. According to the International Auditing and Assurance Standards Board (IAASB), AI technologies have the potential to automate routine audit tasks, detect anomalies, assess risk areas, and improve fraud detection mechanisms (IAASB, 2020). For instance, machine learning algorithms can be used to analyze financial transactions in real time and flag unusual patterns that may indicate fraud or misstatements.
The adoption of AI in auditing also enables the use of predictive analytics, where historical data is used to forecast potential risks and irregularities, thus improving audit planning and execution (Yoon, Hoogduin & Zhang, 2015). Furthermore, robotic process automation (RPA) allows auditors to automate repetitive tasks such as data extraction and reconciliation, which not only speeds up the process but also reduces human error (Appelbaum, Kogan & Vasarhelyi, 2017).
Despite its numerous benefits, the implementation of AI in auditing is not without challenges. These include high implementation costs, lack of technical expertise, data privacy concerns, and resistance to change within organizations (Sutton, Holt & Arnold, 2016). In Nigeria, the challenges are compounded by infrastructure deficits and limited awareness or understanding of AI capabilities among stakeholders.
Nonetheless, as businesses become more data-driven and regulatory expectations for real-time financial monitoring increase, the relevance of AI in auditing is expected to grow. Companies such as Champion Breweries Plc can benefit significantly from AI adoption by enhancing the speed, scope, and quality of audits, which in turn strengthens corporate governance and investor confidence.
Artificial Intelligence is redefining how audits are conducted by enabling smarter, faster, and more accurate auditing practices. For Nigerian firms, embracing AI is not just a matter of innovation, but a strategic necessity in a rapidly evolving global business environment.
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CHAPTER THREE
METHODOLOGY
This section outlines the research design, data collection methods, and data analysis techniques used to examine the impact of Artificial Intelligence (AI) on auditing practices at Champion Breweries Plc, Uyo, Akwa Ibom State. The study focuses on understanding the extent of AI adoption in auditing and its impact on the efficiency and accuracy of audit processes.
Research Design
This study adopts a descriptive research design, as it aims to provide an in-depth understanding of the extent of AI adoption and its impact on auditing practices at Champion Breweries Plc. A case study approach is employed, which is appropriate for investigating specific phenomena within a particular organization. The research is quantitative in nature, and the data collected will be analyzed using appropriate statistical tools to answer the research questions.
Population of the Study
The target population for this study comprises the internal auditors, audit managers, and IT personnel involved in the auditing processes at Champion Breweries Plc. This group is knowledgeable about the audit procedures and the integration of AI technologies into the company’s operations. The total population size will be determined based on the available staff in these departments at Champion Breweries Plc.
CHAPTER FOUR
 Interpretations and Results of Data
This chapter presents the results obtained from the data analysis of the study on the impact of Artificial Intelligence (AI) and auditing practices at Champion Breweries Plc, Uyo, Akwa Ibom State. The chapter provides an interpretation of the findings based on the research questions and the statistical analyses conducted. The data collected through questionnaires and interviews were analyzed using descriptive statistics and inferential statistical techniques, including multiple regression analysis and t-tests. The findings are presented, followed by interpretations of the results.
CHAPTER FIVE
SUMMARY, CONCLUSION, AND RECOMMENDATIONS
Summary of Findings
This study examined the impact of Artificial Intelligence (AI) on auditing practices at Champion Breweries Plc in Uyo, Akwa Ibom State. It sought to evaluate the extent of AI adoption in the company’s auditing practices, the influence of AI tools on audit efficiency and accuracy, the challenges faced in implementing AI, and the perceived benefits from the perspective of auditors and management.
Two key research questions guided the study:
What is the extent to which Artificial Intelligence is adopted in the auditing practices of Champion Breweries Plc?
What is the impact of AI tools on the efficiency and accuracy of audit processes within the company?
Using a combination of questionnaire-based surveys and interviews, data were gathered from key personnel in the internal audit, finance, and IT departments. Descriptive and inferential statistics, including t-tests and regression analysis, were used for data interpretation.
The major findings of the study include:
AI adoption at Champion Breweries is still developing. A significant number of staff indicated that AI tools, such as data analytics and Robotic Process Automation (RPA), are used occasionally or regularly. However, advanced AI tools like machine learning and Natural Language Processing (NLP) have not been fully integrated.
The use of AI tools significantly enhanced audit performance, especially in terms of speed, accuracy, fraud detection, and error reduction. This was statistically supported by t-test results showing significant differences before and after AI adoption.
Conclusion
The study concludes that while AI adoption in auditing at Champion Breweries Plc is still evolving, it is already making a meaningful impact on audit processes. AI tools are enhancing audit efficiency and accuracy, especially in data analysis and fraud detection. However, full realization of AI’s benefits is hindered by internal and external constraints, particularly financial costs, knowledge gaps, and employee resistance.
It is evident that as manufacturing firms like Champion Breweries move toward more technology-driven audit environments, there is a need for strategic investments, capacity building, and change management initiatives to support sustainable AI integration into auditing processes.
Recommendations
Based on the findings and conclusion of this study, the following recommendations are made:
Champion Breweries should allocate more resources to acquire modern AI tools relevant to auditing, including machine learning and automated fraud detection systems.
Continuous professional development and training programs should be implemented to equip auditors and IT personnel with the skills necessary to operate AI systems effectively.
Management should actively engage staff in the AI integration process to address resistance. Creating awareness about the benefits of AI can help reduce fear and increase acceptance.
The IT, Finance, and Internal Audit departments should work closely to ensure seamless integration of AI tools with existing auditing processes.
The company should pilot the use of advanced AI solutions such as predictive analytics and Natural Language Processing (NLP) in smaller audit functions before full-scale implementation.
References
- Appelbaum, D., Kogan, A., & Vasarhelyi, M. A. (2017). Big data and analytics in the modern audit engagement: Research needs. Auditing: A Journal of Practice & Theory, 36(4), 1–27. https://doi.org/10.2308/ajpt-51684
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- Deloitte. (2020). AI-enabled auditing: Enhancing audit quality and insights. Deloitte Insights. Retrieved from https://www2.deloitte.com/
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- Â Ernst & Young (EY). (2018). How AI is revolutionizing the audit process. EY Global Report. Retrieved from https://www.ey.com/
- Â KPMG. (2021). The future of audit: Embracing AI and automation. KPMG Global Publications. Retrieved from https://home.kpmg/
