Improving Audit Quality with AI : A Comparative Study of Regulatory andInstitutional Influences on Nordic SMAFs

Sammanfattning

The purpose of this study is to investigate how small and medium-sized audit firms (SMAFs) can improve audit quality through the use of AI technology, with a focus on how regulations in Sweden and Norway affect the organizational conditions for adapting to AI. The study uses a qualitative method with semi-structured interviews including eight practicing auditors in Sweden and Norway, as well as two stakeholder organizations in the two countries. The interviews were recorded, transcribed, and used as the empirical foundation for our analysis. Based on a structured coding process, the material was organized into recurring patterns and grouped into main themes. The results showed that auditors working in smaller audit firms find AI an effective and useful tool to improve audit quality, but that the adaptation to start implementing AI more broadly feels limited today. A lack of clear guidance from regulators and uncertainty about how to interpret regulations are common factors in the limited adoption. Institutional factors such as pressure from major audit firms and regulatory authorities, as well as the influence of professional networks, have also been shown to have an impact on how SMAFs perceive and adapt to AI.