AI Revolution in Accounting & Auditing: A Comprehensive Literature Review

Abstract

The integration of Artificial Intelligence (AI) into the domains of accounting and auditing has ushered in a transformative revolution with profound implications. This comprehensive literature review delves into the evolution and impact of AI, shedding light on its historical roots, from ancient tales of mechanical marvels to its pivotal emergence in the 1940s. The narrative then seamlessly transitions into the contemporary landscape where AI has become an omnipresent force, significantly altering the way financial data is managed, analyzed, and reported. Within the preview of financial reporting, AI plays a pivotal role. It automates routine tasks, enabling professionals to shift their focus towards strategic endeavors. AI's data analysis capabilities bring to light intricate financial patterns and trends, enhancing risk assessment and fraud detection. Furthermore, AI's predictive analytics empowers businesses to make informed decisions, while its ability to generate financial statements with precision and ensure regulatory compliance is paramount. The paper, while elucidating the transformative potential of AI in accounting and auditing, also examines the attendant challenges, such as workforce adaptation and concerns about job displacement. It emphasizes the imperative of up skilling and fostering a clear vision for successful AI integration. Despite these challenges, the opportunities are substantial, encompassing enhanced efficiency, improved data quality, economic growth, risk control, and interdisciplinary collaboration. This paper concludes that the future of accounting and auditing is intricately tied to the embrace of AI, as professionals adapt, learn, and harness its capabilities. As AI reshapes the financial landscape, those who navigate this transformative journey stand to thrive in this dynamic AI revolution.