The Impact of Artificial Intelligence on Accounting and Auditing Practices

Abstract

The study will examine how Accounting and auditing practices using Artificial intelligence (AI) adoption will influence the accounting and auditing work in the developing economy of Bangladesh. Based on the quantitative review of 60 traded companies of the Dhaka Stock Exchange in six years of research (2020-2025), the study will look at the effect of technological investments on audit reports. As the empirical result shows, the investments into AI and IT infrastructure considerably decrease the number of years before the audit report is issued and therefore promotes significant improvements in the efficiency. Also, the application of AI leads to a higher quality of the audit process through reducing discretionary accruals, which increases the ability to identify earnings management and fraud. The study however reveals a sharp digital divide in the industry that implies that Big 4 affiliate companies are gaining significantly more in technological advantages as compared to local companies. To ensure that AI reaches its full potential and reduce this gap, the proposed study advises that regulators must standardize the AI evidence and promote technology to be used by small companies, whereas educational institutions should promptly amend their education systems, incorporating data analytics and AI ethics.