Smart Tax Auditing Systems for Efficient and Accurate Compliance Monitoring
Abstract:
Engaging
Tax-payers, detecting fraud, and compliance monitoring are gradually changing
as a result of the digital transformation in tax administration. Artificial
intelligence (AI), machine learning (ML), and modern data analytics fuels audit
solutions. These solutions enable tax authorities to transition from a
labor-intensive, reactive audit to a more automated, reactive, and risk-based
compliance systems. This change has resulted in an overall higher operational
effectiveness, and higher revenue collection, but it also introduced new
challenges in governance, privacy, cybersecurity, and algorithmic
accountability. This study offers a thorough fact-based roadmap for tax
authorities, ICT governance experts, and auditors. This aligns with the most
recent global recommendations from the OECD, IMF, World Bank, etcetera. A case
study from Australia, UK, Kenya, and best practices in IT governance that uses
tools such as COBIT, ISO, ISACA, to guide supervision, operational design, and
policies. The final report shows emphasis on the benefits of privacy, ethics,
and secure data sharing. At every stage of the lifecycle of a smart audit
system, it encompasses factors such as explainability, fairness, and ongoing development
to data integration and a risk score is embedded.
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