THE ROLE OF AI IN TRANSFORMING FORENSIC AUDITING: OPPORTUNITIES, RISKS AND ETHICAL CHALLENGES

Abstract: The application of Artificial Intelligence (AI) in forensic auditing is a major technological revolution in the field of fraud detection, financial analysis, and regulatory compliance. This paper examines the revolutionary impact of AI in forensic auditing, focusing on the opportunities and risks, as well as the ethical issues associated with this emerging technology. The paper relies entirely on secondary research data obtained from professional peer-reviewed journals, accounting standards, and industry publications. The results of the study show that AI improves the accuracy of fraud detection, increases efficiency, and improves audit quality through real-time data analysis and automation. Nevertheless, issues of bias, cybersecurity threats, lack of transparency, and data privacy continue to pose major ethical challenges to the adoption of AI in forensic auditing. Keywords: Artificial Intelligence, Forensic Auditing, Fraud Detection, Audit Quality, Ethical Challenges, AI Governance.