The influence of AI on financial reporting quality: A critical review and analysis
1 Barclays Bank, United Kingdom.
2 Independent Researcher, Lagos, Nigeria.
3 City Power, Johannesburg, South Africa.
Review Article
World Journal of Advanced Research and Reviews, 2024, 22(01), 679–694
Publication history:
Received on 05 March 2024; revised on 11 April 2024; accepted on 13 April 2024
Abstract:
In an era where the confluence of Artificial Intelligence (AI) and financial reporting is reshaping the contours of financial analysis and accountability, this paper ventures into the heart of this transformation. With a purposeful gaze, it examines the burgeoning role of AI in enhancing the quality, accuracy, and timeliness of financial reporting. The study, anchored in a qualitative research methodology, meticulously explores the integration of AI technologies within the financial reporting landscape, aiming to illuminate the pathways through which AI can augment traditional reporting practices. Through the lens of this inquiry, the paper traverses the evolution of financial reporting, the foundational principles of AI, and the symbiotic relationship between AI applications and financial analytics, culminating in a nuanced understanding of AI's potential to revolutionize financial reporting.
The main findings reveal that AI significantly enhances reporting accuracy, analytical depth, and efficiency, while also presenting challenges related to ethical considerations, regulatory compliance, and the potential for biases. These insights pave the way for a set of carefully articulated recommendations, advocating for the standardization of AI systems in financial reporting, the development of comprehensive regulatory frameworks, and the promotion of AI literacy among financial professionals.
Conclusively, the paper posits that the strategic integration of AI into financial reporting is not merely an option but a necessity for the advancement of the field, urging stakeholders to embrace this technological evolution with a balanced approach that harmonizes innovation with ethical and regulatory imperatives. This scholarly endeavor not only contributes to the academic discourse on AI in financial reporting but also serves as a beacon for practitioners navigating the complexities of this digital transformation.
Keywords:
Artificial Intelligence; Financial Reporting; Qualitative Research; Regulatory Framework; Analytical Depth; Technological Integration
Full text article in PDF:
Copyright information:
Copyright © 2024 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0