Hashid, A., & Almaqtari, F. A. (2024). The Impact of Artificial Intelligence and Industry 4.0 on Transforming Accounting and Auditing Practices. Journal of Open Innovation: Technology, Market, and Complexity, 100218. https://www.sciencedirect.com/science/article/pii/S219985312400012X
According to Hashid & Almaqtari (2024), auditing and accounting are essential roles that foster an entity’s credibility, reliability, and financial stability. While most auditing and accounting functions were traditionally dependent on manual processes, the advent of IT has proved pivotal in enhancing the efficiency and quality of auditing and accounting tasks. The implication is that novel technologies like artificial intelligence continue to develop the auditing and accounting sector through the automation of repetitive tasks, blockchain technology, incorporation of AI tools, and predictive analytics. Considering that AI offers insights while enhancing the decision-making processes, it increases the accounting professional’s perceived usefulness. It also adds to the usability of the different accounting applications and frameworks. However, the rise of AI in accounting also raises numerous concerns linked to job displacement, particularly in repetitive tasks. Nevertheless, this highlights the essentiality of ongoing professional development and adaptation. Educational and organizational entities are critical in preparing accountants for this crucial transition.
This source will investigate the effect of AI on the accounting sector and profession. Specifically, the findings will show how leveraging AI can enhance auditing and accounting practices leading to efficient financial auditing and reporting practices.
Li, C., Haohao, S., & Ming, F. (2020, April). Research on the impact of artificial intelligence technology on accounting. In Journal of Physics: Conference Series (Vol. 1486, No. 3, p. 032042). IOP Publishing. https://iopscience.iop.org/article/10.1088/1742-6596/1486/3/032042/pdf
Li et al. (2020) stipulate that the recent development of AI has fostered numerous changes in contemporary accounting. In this regard, their study focused on the effect of AI on accounting business, theory, and personnel ability. The findings indicate that AI replaces basic financial work, which leads to accountants being freed from large amounts of low-tech yet repetitive tasks. Moreover, it makes accounting entities automated, leading to accurate yet authentic data, which consequently aids in mitigating accounting fraud. Still, AI has facilitated the development of novel accounting theory. This has unique implications for accounting professionals and institutions, and they must strive to adapt to the changing landscape. For instance, integrating AI into accounting requires higher financial expertise and a multidisciplinary background. Overall, it obliges enterprises and institutions to collaborate in fostering the transformation and upgrade of financial personnel and the industry.
This piece will come in handy in analyzing the effect of AI on accounting businesses, theory, and professionals. Therefore, it will assist in discussing the contemporary tools, theories, and curriculums that can aid in the transition to the digital age. It is an ideal source that covers AI’s broad impact and coverage in the accounting sector.
Stancu, M. S., & Duţescu, A. (2021). The impact of Artificial Intelligence on the accounting profession, a literature assessment. In Proceedings of the International Conference on Business Excellence (Vol. 15, No. 1, pp. 749-758). https://sciendo.com/pdf/10.2478/picbe-2021-0070
According to Stancu & Dutescu (2021), artificial intelligence acts as a novel technology in the accounting field. Professionals are already leveraging AI in their daily tasks, for instance, when it comes to enhancing results and reducing the time spent. For instance, the first step adopted by accounting entities in paving the way for AI revolves around robot process automation. While there has been concern about losing critical human control, the authors assert that this is a myth for accounting professionals. The reason is that AI presents itself as a complement to human intelligence. The implication is that professionals should strive to develop new abilities and skills. The article offers an extensive review to comprehend better how AI impacts the accounting profession.
This source will be utilized to discuss how AI integration in the auditing and accounting field is set to foster numerous opportunities for professionals to work in more challenging yet interesting environments. The implication is that personnel with the right mindset will have better chances for career development. Adapting to the new status quo is essential for accounting entities and professionals.
Tandiono, R. (2023). The Impact of Artificial Intelligence on Accounting Education: A Review of Literature. In E3S Web of Conferences (Vol. 426, p. 02016). EDP Sciences. https://www.e3s-conferences.org/articles/e3sconf/pdf/2023/63/e3sconf_icobar23_02016.pdf
Tandiono (2023) asserts that AI is rapidly revolutionizing numerous industries, including accounting. In this light, the big four accounting firms, including Deloitte, EY, PwC, and KPMG, are heavily invested in AI. Therefore, this study aims to delve into the perspectives of accounting stakeholders on the effect of AI on accounting education. The findings indicate that the evolving landscape of accounting obliges a shift regarding the focus of business institutions and higher education policymakers toward the development of new competencies and reframing existing ones. Moreover, several prevalent themes include a significant interest in expert systems, exploration of AI applications in accounting education, and the urgent call for accounting education reforms. Overall, the study concludes that educators must strive to adapt their teaching frameworks to equip students with the ideal knowledge of the changing industry. Still, the opportunities and challenges must be explored exhaustively.
This source will be utilized to discuss how AI affects accounting education and the profession. In this regard, the need to reform the accounting framework has been a subject of advocacy. Nevertheless, integrating AI in accounting education can foster enhanced learning outcomes and better equip professionals for the changing demands of the industry.
Chukwuani, V. N., & Egiyi, M. A. (2020). Automation of accounting processes: impact of artificial intelligence. International Journal of Research and Innovation in Social Science (IJRISS), 4(8), 444-449. http://eprints.gouni.edu.ng/3577/1/AUTOMATIONOFACCOUNTINGPROCESSESIMPACTOFARTIFICIALINTELLIGENCE.pdf
According to Chukwuani & Egiyi (2020), the 21st century is significantly marked by automation, and the accounting field is at the forefront. In this regard, accounting automation covers the total lifecycle of the accounting process. For instance, accounting is handled through Robotic Process Automation. The processes linked to RPA include purchase-to-pay, internal performance reporting, and record-to-report. The implication is that automation through AI and RPA will foster notable changes in the accounting sector. In this light, smart accounting entities should strive to proactively integrate AI into their activities, leading to a competitive advantage. Besides, professionals should not perceive AI as a threat as it seeks to complement their skills while enhancing speed and efficiency.
The source will be utilized to examine the effect of AI on the accounting sector with respect to the level of advancement in accounting process automation. The core technologies, such as expert systems, robots, neural networks, and fuzzy logic, are covered in detail. Moreover, the piece will come in handy in illustrating how the contemporary professional can leverage AI into their tasks.
Leitner-Hanetseder, S., Lehner, O. M., Eisl, C., & Forstenlechner, C. (2021). A profession in transition: Actors, tasks, and roles in AI-based accounting. Journal of Applied Accounting Research, 22(3), 539-556. https://www.emerald.com/insight/content/doi/10.1108/JAAR-10-2020-0201/full/pdf
Leitner-Hanetseder et al. (2021) strive to illustrate how the accounting profession is transitioning due to artificial intelligence. In this regard, the authors focus on the actors, tasks, roles, and related skills in the context of AI-linked accounting. The current developments in accounting tasks and the integration with AI are bound to foster what is dubbed a Fully Autonomous Accounting System. To reach such levels, accounting is bound to be subject to changes in the utilization of big data and smart technologies that will oblige varying tasks alongside upgrading qualifications. The implication is that the rise of AI in accounting will also oblige highly skilled workers. Nevertheless, it is also bound to craft numerous job opportunities even as it replaces some. The collaboration between humans and AI as an actor will supplement decision-making.
This source will aid in assessing the net impact of AI on the accounting profession. The reason is that it illustrates the rise of a new machine-human symbiosis. In this regard, early anticipation of the possible changes alongside investing in the necessary skills is critical.
Akhter, A., & Sultana, R. (2018). Sustainability of the accounting profession at the age of the Fourth Industrial Revolution. International journal of Accounting and Financial reporting, 8(4), 139. https://www.academia.edu/download/84449245/pdf.pdf
Akhter & Sultana (2018), the constant rise of artificial intelligence in the accounting sector is evolving the profession alongside the necessary competencies accountants need to survive the future. In this regard, AI and robotics are free from man-error and possess higher processing speeds and power. This poses the risk of eroding the conventional accounting job. However, the authors set out to illustrate how the accounting profession can be sustainable in the age of AI. For instance, AI assists accountants in enhancing their efficiency by adding new job responsibilities that require intense technological knowledge and critical thinking. The implication is that professionals must collaborate and become more strategic. Overall, technology is not a threat as it is especially fit for low-skill jobs such as those requiring repetition. Integration into the sector will ensure that the professionals get more time, more creative, and judgmental analysis as workloads are significantly reduced.
This source will aid in discussing how the accounting profession can be sustainable amid technological advancements in the sector. For instance, the source offers adaptability insights and incorporates technical, critical thinking, and communication skills. Overall, the source illustrates how AI will not vanish accounting but reshape it for the better.
Peng, Y., Ahmad, S. F., Ahmad, A. Y. B., Al Shaikh, M. S., Daoud, M. K., & Alhamdi, F. M. H. (2023). Riding the waves of artificial intelligence in advancing accounting and its implications for sustainable development goals. Sustainability, 15(19), 14165. https://www.mdpi.com/2071-1050/15/19/14165
Peng et al. (2023) delve into the role of AI in accounting, especially in aspects like auditing, reporting, and financial decision-making. In this regard, integrating AI into accounting aids professionals in enhancing their accuracy and efficiency while giving them decision support. The implication is that AI has a net positive impact on accounting as it has evolved the conventional methods and enhanced the overall effectiveness and accuracy of the sector. From conducting automated tasks to offering predictive capabilities, AI has revolutionized the accounting sector. Moreover, it fosters economic growth and contributes to the attainment of different SDGs through technology innovation, strengthening financial governance, and fostering collaborations. While adopting AI in accounting is bound to come with several issues linked to data privacy and bias, different stakeholders, like accountants and their firms, must address these responsibly.
The source will be critical in highlighting how AI has emerged as a disruptive force in accounting. It has evolved how accountants work by offering them an ideal opportunity to enhance their accuracy, efficiency, and decision-making. AI-linked automation has also been critical in the attainment of SDGs. The piece, therefore, has significant data that will come in handy, illustrating how AI can successfully be adopted and sustained in the accounting sector.
Askary, S., Abu-Ghazaleh, N., & Tahat, Y. A. (2018). Artificial intelligence and reliability of accounting information. In Challenges and Opportunities in the Digital Era: 17th IFIP WG 6.11 Conference on e-Business, e-Services, and e-Society, I3E 2018, Kuwait City, Kuwait, October 30–November 1, 2018, Proceedings 17 (pp. 315-324). Springer International Publishing. https://inria.hal.science/hal-02274162/file/474698_1_En_28_Chapter.pdf
According to Askary et al. (2018), the production of relevant yet reliable accounting data is the core mandate of accountants and auditors. In this regard, the relevance and reliability of data depend on a rigid internal control framework. Artificial intelligence has proved important in complementing internal control frameworks through tools like neural networks, multi-agency systems, particle swarm optimization, and genetic algorithms. AI acts as a mix of equipment and software, whereby it serves as a substitute for human intelligence when it comes to solving complex accounting problems. In the future of accounting, AI promises to reduce automotive tasks and simplify complicated auditing and accounting cases while producing more reliable financial data.
This source will illustrate how AI can assist accounting firms in strengthening their internal control frameworks. In this light, the piece offers practical insights into designing and developing a rigid internal control that fosters reliable accounting data. Moreover, the piece has insights into how AI tools can reduce data risk. Overall, the piece shows how firms and accountants can remove the weaknesses linked to internal frameworks. Luckily, AI has the capabilities to sense weakness, understand the problem, and engage in actions to resolve the issue.
Jędrzejka, D. (2019). Robotic process automation and its impact on accounting. Zeszyty Teoretyczne Rachunkowości, (105), 137-166. https://cejsh.icm.edu.pl/cejsh/element/bwmeta1.element.desklight-0c34373a-310d-460e-b153-a5ffd88109ca/c/11_B5_Jedrzejka.pdf
According to Jedrzejka (2019), the quest for efficient methods to conduct accounting tasks dates back to the 1950s. In this regard, process mechanization encompassed punched cards to store and retrieve transaction data. However, the arrival of computers redefined this by allowing cost and time savings. Since then, IT and accounting have become intertwined with recent developments offering unique capabilities through artificial intelligence and robotic process automation. Software bots and systems are easily programmed to perform repetitive, high-volume, and rules-based accounting tasks. Some accounting tasks and processes that benefit from automation include reporting, accounts receivable and payable, cash management, and period-end closing. However, the authors stipulate that RPA is advantageous over full automation as the deployment is less costly yet faster. Conversely, there are challenges linked to operational risks, organizational or cultural aspects, technology selection, cyber security, and regulatory risks.
This piece will illustrate how the increased technology adoption will evolve accountants’ roles into higher value yet complex tasks. The reason is that RPA and AI tools are bound to handle the low-skill tasks. The source has insights on how the work of contemporary accountants will need to go past conventional reporting and bookkeeping towards tasks that oblige more judgment, evaluation, and interpretation.
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