AI-driven auditing leverages artificial intelligence technologies to enhance the accuracy, efficiency, and scope of financial audits. By automating data analysis, anomaly detection, and pattern recognition, AI tools can identify potential financial risks more quickly and with greater precision than traditional methods. This enables auditors to uncover fraud, errors, and compliance issues early, reducing the likelihood of financial misstatements and regulatory penalties. Additionally, AI can continuously monitor transactions in real-time, providing dynamic risk assessments and improving overall audit quality. However, the integration of AI also introduces new challenges, such as algorithmic bias, data privacy concerns, and the need for auditors to develop skills in interpreting AI outputs. Overall, AI-driven auditing represents a transformative approach that strengthens financial risk management by providing deeper insights, enhancing decision-making, and increasing transparency in financial reporting.