Despite the increasing global popularity of AI tools for financial statement auditing, auditors in India are still in the early stages of embracing and using them. Small-scale audit practitioners in India have gotten less attention than the Big Four accounting firms. This study employs a survey research design to assess how AI influences audit practice in India. This study contains 50 accounting businesses in Kerala State that were chosen using purposive sampling. The data was gathered using a well-structured questionnaire, and the average score on the Cronbach Alpha test was 70%. Based on the descriptive and correlation analysis conducted, a substantial correlation between machine learning, data mining, image recognition, and audit procedures was found in Kerala. The study revealed that AI can help auditors anticipate trends and make more sophisticated decisions, thus boosting audit practice. The report suggests training accountants and auditors in data mining techniques, investing in machine learning tools, and employing image recognition to classify items.