Resolving the dichotomy of human and machine intelligence in auditing practices

Abstract

In a digitally empowered work environment, human machine interaction needs to dynamically adapt in order to create the appropriate fit between organizational policies and practices (fairness and transparency) and environmental conditions and goals (digitization and intelligence). Each form of intelligence has distinctive strengths and collaboration between the two forms will create synergy that promotes speed and accuracy in unpredictable environments. In this study, we examine the co-creation of value as coordination mechanisms between humans and machines defines meaningful interaction between the two partners, leveraging the capability of each to achieve higher organizational objectives. We consider the area of accounting audit as a prime application for the cooperation between humans and machines and identify new modalities of value creation based on observability, predictability and directability that promote positive interdependence and improve auditing outcomes. AMCIS 2021.