Artificial Intelligence (AI) in Accounting and Auditing: The Conceptual Framework

Abstract

This literature review explores the application of Artificial Intelligence (AI) in the fields of accounting and auditing. A semi-systematic or narrative review approach was employed to analyze relevant publications, including books and journals. In response to the disruptive technologies of Industry 4.0, the accounting and auditing professions must transform to adapt and evolve. Interdisciplinary collaboration is crucial for research in AI as it pertains to accounting and auditing. The wider adoption of AI in these fields promises increased efficiency, productivity, and accuracy but also poses challenges, such as income and wealth inequality, job displacement, and an unskilled workforce. Thus, educators, regulators, and professional bodies need to prepare for this paradigm shift by readying students, shaping policies, and training future professionals to navigate a world increasingly dominated by big data, blockchain, and AI. This shift will necessitate a reconceptualization of the accounting curriculum, revolutionary policy formulation, and the redesign of professional development programs. The emergence of professional hybrids is anticipated to lead the profession in the future. AI's development and implementation in accounting and auditing can be seen as a double-edged sword; while its ultimate impact remains uncertain, it is clear that the traditional accounting and auditing professions are poised for significant change.