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.