Business and Social Sciences
Business and social sciences | Online ISSN 3067-8919
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Volume 2 Number 1 2024
RESEARCH ARTICLE (Open Access)
Artificial Intelligence Enabled Auditing for Real Time Financial Reporting Enhancing Precision and Regulatory Compliance
Muslima Jahan Diba1*, Md. Rezaul Haque2, Mitu Akter3
Business and Social Sciences 2 (1) 1-8 https://doi.org/10.25163/business.2110492
Submitted: 07 July 2024 Revised: 07 September 2024 Accepted: 13 September 2024 Published: 15 September 2024
Abstract
Background: Artificial intelligence (AI) has taken over auditing operations through its ability to perform instant financial reporting and its capacity to produce exact results while maintaining compliance with U.S. financial institution regulations. Traditional auditing systems face problems with slow error detection and complex regulatory compliance requirements and manual limitations.
Methods: The study involved 240 finance professionals and auditors who worked at different financial institutions throughout the United States to analyze how AI auditing tools affect their performance. The survey examined three main areas which include reporting accuracy improvements and operational efficiency and regulatory compliance. The analytical methods used for fraud detection included anomaly detection and predictive analytics and regression-based risk modeling and clustering techniques.
Results: The data shows that 78% of participants experienced better reporting precision and 82% of them saw improved compliance monitoring effectiveness after they started using AI systems. The processing time for audits dropped by 27% because real-time anomaly detection enabled organizations to speed up their response to unexpected events. The findings from the statistical assessments indicated Precision=0.85 and Recall=0.87 and F1-score=0.86 and Accuracy=89% and p=0.05 which proves that AI-enabled auditing provides better performance measures and operational outcomes.
Conclusion: AI-enabled auditing provides a new age approach to financial reporting in providing accurate data delivery, as well as improving regulatory compliance and speed in conducting audit activities.
Keywords: Financial Reporting, Artificial Intelligence, Real-Time Auditing, Regulatory Compliance
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