With the Mediation of Internal Audit, Can Artificial Intelligence Eliminate and Mitigate Fraud?
Ali Rehman · Advances in finance, accounting, and economics book series · 2022
The purpose of this study is to determine artificial intelligence (AI)-supported Omani publicly listed organisations' attitudes towards fraud elimination and mitigation (FEM) concerns from the lens of agency theory with internal audit (IAF) serving as the mediator. A descriptive cross-sectional survey was conducted by involving Omani publicly listed companies as the unit of analysis. Data were gathered using an internet-based tool and analysed via PLS-SEM and SPSS. For results, AI displayed an insignificant but direct impact on FEM, whereas IAF exhibited a significant and direct effect on FEM. Apparently, AI exerted a significant and direct impact on IAF, while IAF mediated the correlation between AI and FEM. This study serves as a guidance to regulators, professional bodies, and organisations in amending their codes of corporate governance and organisational policies by initiating AI as a governance agent working for the principal, as well as operating towards eradicating fraud and fraudulent practices.