A Conceptual Framework for Assessing the Application of Artificial Intelligence for Financial Reporting

Abstract

Accountants have always been at the forefront of using new technologies to achieve high-speed data analysis, increased accuracy, and cost and time savings in accounting operations. Financial reporting, which is an essential component of financial accounting, has distinct characteristics and requirements, including regulatory compliance. Financial reporting involves large amounts of data and repetitive tasks that consume a significant portion of companies' financial and human resources. As a result, businesses have always striven to use technology to improve the efficiency and effectiveness of their business processes. In recent years, accounting professionals and the big four accounting firms have become increasingly interested in using the new and emerging technologies embedded in artificial intelligence (AI) for financial reporting. This paper seeks to examine the factors that influence the application of AI for financial reporting, as well as the opportunities and challenges that AI presents for its potential use in financial reporting in part or whole in the near future. This paper also proposes a conceptual framework to address these issues and facilitate future research in this field.

The role of AI integration and governance standards: Enhancing financial reporting quality in Islamic banking

“…The use of AI technology is very important in the context of Islamic banking, since it is necessary to guarantee compliance with Shariah rules and has the ability to improve accuracy and efficiency in financial reporting. Prior studies have shown that a strong propensity for using artificial intelligence (AI) may lead to the effective adoption and successful use of AI in enhancing financial reporting processes (Saxena, 2022).…”

“…Many major elements must be considered for the use of AI to Islamic financial reporting to be a success. Among them, one may find user-centric AI technologies' usability, institutional endorsement, and supplementary resources, in addition to an individual's natural tendency (Saxena, 2022). This emphasises the need of making sure AI technologies are available and customised to suit the unique requirements of Islamic financial reporting.…”