Artificial Intelligence and the Reliability of Accounting and Financial Information: A Literature Review

Abstract

The reliability of accounting and financial information remains a fundamental prerequisite for maintaining the confidence of investors, creditors, regulators, and other stakeholders. In an environment shaped by rapid digital transformation, artificial intelligence (AI) is increasingly redefining the way accounting and financial information is produced, processed, controlled, and audited. While existing research highlights the potential of AI to automate routine tasks, enhance data analysis, and improve anomaly detection, the literature has largely examined digital auditing, algorithmic governance, internal control, and explainable AI as separate streams of inquiry. As a result, limited attention has been devoted to understanding how these dimensions interact to influence the reliability of accounting and financial information. To address this gap, this paper develops a structured narrative literature review drawing on research in financial reporting quality, internal control, digital auditing, AI governance, and explainable artificial intelligence. The analysis shows that the contribution of AI to information reliability is inherently conditional rather than automatic. The benefits associated with AI adoption materialize only when data quality is effectively managed, models are adequately documented and supervised, organizational governance mechanisms are in place, and professionals possess the capabilities required to critically interpret AI-generated outputs. Building on these insights, the paper proposes a socio-technical conceptual model that integrates AI adoption, internal control, human competencies, and algorithmic transparency as complementary determinants of accounting and financial information reliability. Seven research propositions are derived from literature to support future empirical investigations involving accounting, auditing, internal control, and finance professionals.

Classification JEL: M41, M42, O33
Paper type: Theoretical Research