AI in accounting and auditing: A transformational paradigm

Artificial Intelligence (AI) has become a fast-growing technology and a key component for many businesses to provide better customer services, improve operational efficiency and effectiveness, and gain a competitive advantage. Accounting and auditing play a vital role in running a business. Accounting provides information about the financial position, profitability and performance of a company, while the purpose of auditing is to determine whether the financial information provided by accounting is accurate or reliable. The accounting and auditing field is also not untouched by the use of AI and its technology. The “Big 4” accounting firms—Deloitte, Ernst & Young (EY), PricewaterhouseCoopers (PwC) and KPMG, the largest service providers in the accounting industry—have an AI strategic approach and framework. The accounting and auditing profession is going through a transformational evolution with AI. This article attempts to examine the role of AI and related technologies in accounting and auditing using secondary data. Technological advancement and changes bring both positive and negative aspects. The article studies what are the opportunities and challenges of adopting AI in accounting and auditing.