IMPACT OF ARTIFICIAL INTELLIGENCE IN ACCOUNTING AND AUDITING

Abstract

Artificial Intelligence (AI) is fundamentally reshaping the accounting and auditing profession, moving practitioners away from manual, transaction-level work toward analytical, judgment-intensive roles. This paper examines the emergence and application of AI technologies—including machine learning, natural language processing, robotic process automation (RPA), and deep learning—across core accounting and auditing functions such as bookkeeping, financial reporting, fraud detection, risk assessment, and continuous auditing. Drawing on a review of academic literature, industry reports, and practitioner surveys, the paper evaluates the benefits AI offers in terms of accuracy, efficiency, real-time insight, and enhanced audit quality, while also critically examining challenges including data quality dependencies, algorithmic explainability (the “black box” problem), regulatory uncertainty, cybersecurity risk, and the widening skills gap among accounting professionals. The paper further discusses how global accounting bodies and audit firms are adapting through AI-enabled audit platforms and continuous assurance models. Finally, it outlines future research directions, including explainable AI (XAI) in assurance work, blockchain-AI integration, and the evolving competency framework for accountants and auditors in an AI-augmented profession. The paper concludes that AI should be viewed as a complement to, rather than a replacement for, professional judgment, with human oversight remaining central to maintaining trust, ethics, and accountability in financial reporting.