A Study on Artificial Intelligence's Impact on Accounting Processes

This report examines the significant impact of Artificial Intelligence (AI) on the accounting industry. It explores AI's applications in various areas, including auditing, management accounting, and accounting information systems. The report highlights how AI is automating labor-intensive tasks in auditing, assisting in data analysis, and aiding in decision-making processes. In management accounting, AI is shown to facilitate data consolidation, streamline procurement, and improve accounts receivable and payable processes. Furthermore, the report discusses the role of AI in enhancing accounting information systems by improving data storage, integration, and delivery. The rationale for the topic is rooted in the advancements in information technology and the need for economic societies. The report emphasizes the positive implications of AI in the accounting industry, such as increased productivity, improved accuracy, and cost reduction. The provided references support the analysis with academic literature and industry insights.

Running head: AUDITING
Accounting
Name of the Student
Name of the University
Author’s Note

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Table of Contents
Artificial Intelligence.................................................................................................................2
Importance of AI in Auditing.....................................................................................................2
Importance of AI in Management Accounting..........................................................................2
Importance of AI in Accounting Information System Areas.....................................................3
Rational for Topic......................................................................................................................3
Relation of the Topic to Accounting Industry............................................................................4
References..................................................................................................................................5

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Artificial Intelligence
AI can be considered as the accumulation of concept as well as technologies that
mean different things to the people such as self-driving cars, robots and others. In other
words, AI can be considered as the simulation of human intelligence processed by different
computer system and machines (Ghahramani, 2015). In the recent years, vast contribution of
AI can be seen in different dimensions of the amounting profession like auditing,
management accounting and other these are discussed below.
Importance of AI in Auditing
The main focus area of AI in auditing is to ensure the automation of labour-intensive
tasks. Analysis of numbers is considered as the main task in auditing and the large use of AI
can be seen in this area of auditing. Auditors are using the next level of AI in the analysis of
numbers for automating statistics as well as mathematical modelling. This has large
relevancy with the audit of large corporations when the auditors wish to increase the speed,
granularity and productivity of the date analysis modelling. Moreover, AI helps the auditors
in making the audit judgments while assisting the auditors to make better decisions by taking
into consideration the potential omission and biases that could have normally took place in
the manual delicious-making process in auditing (Kokina & Davenport, 2017).
Importance of AI in Management Accounting
In management accounting, the use of accounting information can be seen by the
organizational managers for better decision-making process. AI has a positive role to play in
management accounting. AI helps the management accountants by providing data from
different sources by consolidating and merging it for effective decision making process. After
that, AI assists the management accounting profession in the tracking and procuring method
in management accounting; and the use of AI makes the accounting procurement process

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easier as well as paperless. Accounts receivable and payable is considered as a crucial part in
management accounting. The inclusion of AI in the accounts receivable and payable process
makes it more streamlined in the presence of digital workflow. These roles of AI are helpful
in the processes of management accounting (Moudud-Ul-Huq, 2014).
Importance of AI in Accounting Information System Areas
The application of artificial intelligence continues to gain power in the areas of
accounting information system. In the early years, the interest was in designing science
approaches to use AI in the areas of accounting information systems. However, in the recent
years, AI includes the use as well as comparison of machine language capabilities in order to
explain past occurrences as well as future occurrences in accounting information systems. At
the same time, the accounting information systems in the presence of different AI mechanism
have been able in covering many accounting issues in different areas of accounting
information system such as storing financial and accounting information, integration of the
stored data, timely delivery of data, conversion of the stored data into meaningful information
and others (Sutton, Holt & Arnold, 2016). Therefore, it can be seen that AI has positive
influence on the areas of accounting information system.
Rational for Topic
In the presence of major development in information technology along with the need
of economic society, AI has stepped into the golden era. The application of AI technology
can be seen in different areas like accounting, entertainment, education, health, commerce,
transport and others. Companies all over the world are using AI in order to avail its key
benefits like better handing of information, solution of tough problems, conversion of
information to knowledge, ability to complete dangerous tasks without affecting hostile tasks,
replacing humans in tedious, laborious and repetitive tasks and others. In the presence of this

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significance of AI, the undertaken research topic would be helpful in exploring the role of AI
in different areas of accounting (Sutton, Holt & Arnold, 2016).
Relation of the Topic to Accounting Industry
The presence of a major change can be seen in the application of AI technology in
accounting fields and it is expected that this large use of AI will bring major changes as well
as development in the accounting industry. Now-a-days, business organizations are applying
new technologies for streamlining their business operations and accounting is considered as
one of the crucial business operations. The use of AI in the accounting industry provide
positive results like increase in productivity, improvement in accuracy and reduction of cost.
This indicates that AI has major relation with the accounting industry due to its application in
different area of accounting like auditing, management accounting and others (Sutton, Holt &
Arnold, 2016).

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References
Ghahramani, Z. (2015). Probabilistic machine learning and artificial
intelligence. Nature, 521(7553), 452.
Kokina, J., & Davenport, T. H. (2017). The emergence of artificial intelligence: How
automation is changing auditing. Journal of Emerging Technologies in
Accounting, 14(1), 115-122.
Moudud-Ul-Huq, S. (2014). The Role of Artificial Intelligence in the Development of
Accounting Systems: A Review. IUP Journal of Accounting Research & Audit
Practices, 13(2).
Sutton, S. G., Holt, M., & Arnold, V. (2016). “The reports of my death are greatly
exaggerated”—Artificial intelligence research in accounting. International Journal of
Accounting Information Systems, 22, 60-73.