The Effect of Robotic Process Automation (RPA) on the Audit Efficiency of Selected Banks in Nigeria

Abstract

This study examined the effect of Robotic Process Automation (RPA) on audit efficiency in selected banks in Nigeria, with emphasis on fraud detection and risk management. Audit efficiency was measured using average audit report lag. The study adopted an ex post facto research design and relied on secondary data obtained from published financial statements, annual reports, and regulatory disclosures of 10 selected banks in Nigeria for the period 2010 to 2025. Descriptive statistics were used to summarize the data, while panel unit root tests were conducted to establish stationarity. Ordinary Least Squares (OLS) regression analysis was then employed to test the effect of RPA-related variables on audit efficiency. The findings showed that RPA in fraud detection had a significant negative effect on audit report lag, indicating that automation enhances audit efficiency by reducing the time required to complete audit engagements. Furthermore, RPA in risk management, proxied by the average nonperforming loan ratio, is statistically significant effect on audit efficiency. The study concludes that RPA contributes more strongly to audit efficiency when applied to fraud detection than to risk management activities. The study recommends that banks increase investment in RPA-driven fraud detection systems and improve the integration of automation tools into their risk management frameworks. The study adds to existing knowledge on digital transformation, audit automation, and technology-enabled auditing in emerging economies.