AI APPLICATION: THE KEY TO ENHANCING THE EFFECTIVENESS OF INTERNAL CONTROL AND ACCOUNTING FRAUD DETECTION

Abstract

This article delves into the increasingly important role of Artificial intelligence (AI) in revolutionizing internal control and combating accounting fraud. In the context of a rapidly developing digital economy, with an explosion in the volume of transactions and financial data, traditional audit and control methods have become inefficient and costly.

The research indicates that Machine learning algorithms and Big data Analytics can analyze millions of transactions in real-time, quickly identifying anomalies, suspicious behavioral patterns, and potential risks that are difficult for humans to detect. Instead of relying on random sampling, AI enables continuous and comprehensive control, helping businesses transition from a passive, reactive approach to proactive prevention.

Key applications of AI include: using predictive models to identify suspicious transactions, thereby narrowing the scope and providing early warnings; automating repetitive tasks, freeing up human resources to focus on more complex and strategic issues; and analyzing historical data to forecast and more accurately assess the level of internal control risk.

As a result, the integration of AI not only helps businesses minimize financial losses from fraud but also enhances operational efficiency, improves transparency, and strengthens the reliability of the control system. The article also emphasizes that the successful application of AI requires a tight combination of technology, high-quality data, and the professional competence of accounting and auditing teams.