Application of Machine Learning in Auditing Teaching: A Case Study of Predicting the Audit Report Type of China ST Listed Companies

Artificial intelligence is an important emerging technology in the accounting industry. Fear and hype associated with artificial intelligence and its impact on accounting and auditing jobs have pervaded the professional fields of accounting and auditing. It is important to develop AI competency in accountants and auditors. This paper presents a teaching case for a professor or lecturer to use for teaching machine learning to accounting students. The case is based on openly available data from the China Stock Market & Accounting Research database and aims to teach students how to predict the future audit report type of a China ST listed company. Through case teaching, students can learn skills related to computer-assisted auditing tools and machine learning (such as ACL) develop the confidence to apply artificial intelligence in their education and future work.