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AI in accounting and auditing practice

Source article: ARTIFICIAL INTELLIGENCE IN ACCOUNTING AND AUDITING: TRANSFORMING FINANCIAL DECISION-MAKING AND PROFESSIONAL PRACTICES

Abstract: The emergence of Artificial Intelligence (AI) has significantly transformed accounting and auditing practices across organizations worldwide. The increasing availability of financial data, advancements in machine learning algorithms, and the demand for real-time financial information have accelerated the adoption of AI-driven technologies in accounting and auditing functions. Traditional accounting systems primarily relied on manual data processing and periodic reporting, whereas AI enables continuous…

By the Truvace desk1 min read1 sourcePeer-reviewedTRV-2026-1777· cite & verify
ARTIFICIAL INTELLIGENCE IN ACCOUNTING AND AUDITING: TRANSFORMING FINANCIAL DECISION-MAKING AND PROFESSIONAL PRACTICES
A Review of Bexar Metropolitan Water District's Projected Financial Data for Fiscal Years 2009 and 2010 by Texas. Office of the State Auditor; Keel, John. Public domain
Trace impact readingContested
P 71The P score combines the specificity and measured human impact of the grounded problem claim with the strength of this Trace’s cited sources.

Both sides are scored from claims and sources, not community votes.

G 71The G score combines the specificity and measured human impact of the grounded gain claim with the strength of this Trace’s cited sources.

In brief

A conceptual review of recent academic literature and professional reports examines how AI is changing accounting and auditing. It describes a shift from manual data processing and periodic reporting toward continuous monitoring, predictive analytics, automated transaction processing, and intelligent decision support.

The review matters because it frames AI as a complement to human expertise rather than a replacement, while also flagging governance and skills risks. Because the study is conceptual and not an empirical test, the size of the benefits and the severity of the risks in real firms remain unmeasured.

Main points

  1. The paper links AI adoption to growing financial data volumes, better machine learning algorithms, and demand for real-time financial information.
  2. Technologies covered include machine learning, natural language processing, robotic process automation, and generative AI.
  3. In auditing, AI is said to analyze structured and unstructured financial data to support fraud detection and audit quality.
  4. The paper reports that AI enhances efficiency, accuracy, and strategic decision-making while complementing human expertise.

The gain

AI-driven tools in auditing can improve fraud detection, risk assessment, and anomaly identification by automatically analyzing large volumes of financial data, supporting efficiency and accuracy.

The problem

AI adoption in accounting and auditing raises concerns about data privacy, algorithmic bias, transparency, ethical accountability, and workforce readiness.

The rundown

The paper contrasts traditional accounting systems, which relied on manual data processing and periodic reporting, with AI-enabled systems that offer continuous monitoring and predictive analytics. It says these tools have redefined professional roles and changed how financial information is generated, analyzed, and interpreted.

It also lists challenges that accompany adoption: data privacy, algorithmic bias, transparency, ethical accountability, and workforce readiness. The study evaluates both benefits and challenges and discusses implications for accounting professionals.

What this doesn’t fix

The study is conceptual and based on a literature and professional report review, so it does not provide original empirical measurement of AI's effects in accounting or auditing firms.

Sources

  1. Peer-reviewedRCHUB JOURNAL OF CONTEMPORARY TRENDS IN MANAGEMENT COMMERCE AND ECONOMICS (JCMCE)2026-10-13

The debate