AI-DRIVEN FINANCIAL REPORTING AND AUTOMATED AUDITS: A STUDY ON DIGITAL TRANSFORMATION IN ACCOUNTING AND AUDITING

The rapid advancement of digital technologies has significantly transformed accounting and auditing practices worldwide. Artificial Intelligence (AI), cloud computing, data analytics, and automation tools are reshaping traditional financial reporting systems and audit procedures. The emergence of AI-driven financial reporting and automated audit mechanisms has enhanced the efficiency, accuracy, transparency, and reliability of financial information.

This research paper examines the impact of AI-driven financial reporting and automated auditing on accounting and audit practices using primary data collected from accounting and auditing professionals. The study also incorporates secondary data from journals, professional reports, and regulatory publications. The findings reveal that digital tools reduce manual errors, improve audit efficiency, and enable continuous assurance models. However, challenges such as ethical concerns, data security, and skill gaps persist. The study concludes that digital transformation is redefining the accounting profession and highlights the need for ethical governance and continuous upskilling.