The Impact of Artificial Intelligence on Financial Reporting Accuracy and Auditor Independence: A Case Study from Indonesia
DOI:
https://doi.org/10.65440/jaa.v3i1.241Keywords:
Artificial Intelligence, Financial Reporting Accuracy, Auditor Independence, Auditing Ethics, Machine Learning, Robotic Process AutomationAbstract
Purpose – To quantitatively examine the impact of artificial intelligence (AI) adoption on financial reporting quality and auditor-related outcomes, considering how AI technologies transform financial reporting through improved data accuracy, processing efficiency, and fraud detection.
Design/methodology/approach – The study utilizes survey data from 145 finance professionals across multiple industries in Indonesia. It employs non-parametric correlation and multiple regression analyses to test the relationship between AI adoption and key dimensions of financial reporting quality (accuracy, timeliness, and fraud detection), as well as perceptions of auditor independence and professional quality.
Findings – The results reveal a critical dichotomy: AI adoption significantly enhances financial reporting quality (ρ=0.457, p<0.001; R²=0.371), while its relationship with auditor independence is statistically non-significant (ρ=−0.034, p=0.682). This indicates that AI strengthens reporting processes and efficiency without observable adverse effects on auditor independence within the sampled Indonesian population.
Research limitations/implications – Theoretically, this research extends the Technology Acceptance Model (TAM) and Information-Processing Theory to the emerging-market audit context, providing novel quantitative evidence on AI's impact. Practically, the study implies a need to strengthen governance mechanisms, promote AI-focused auditor training, and enhance transparency of AI-supported procedures to optimize AI’s benefits while maintaining audit integrity and advancing data-driven policymaking. (Note: The original text does not state explicit limitations, but limits its scope to the sampled Indonesian population).
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