Artificial Intelligence and Accounting Profession of Big 4 Audit Firms

Abstract

The study focused on artificial intelligence and accounting profession of Big 4 audit firms. Artificial intelligence was measured using machine learning, natural language processing and data analytics. However, accounting profession was measured using reporting accuracy of accounting information. Survey research design was adopted. The data were collected through questionnaire administration. The population of the study is made up of 200 staff of KPMG, Deloitte, PricewaterhouseCoopers and Ernst and Young while the sample size of 147 staff was derived using convenience sampling. The data collected were analyzed using ordinary least multiple regression analysis. The result revealed that machine learning and natural language processing have a significant effect on reporting accuracy of accounting professionals. However, data analytics has no significant effect on reporting accuracy of accounting professionals. Based on the findings, the study concludes that artificial intelligence affects accounting profession of Big 4 audit firms. Therefore, the study recommends that auditing firms should integrate machine learning algorithm in their accounting and auditing process to minimize human error and time wastages in order to enhance reporting accuracy. In years to come, the ability of technology to discover these rules and predictively plan will help to remove a significant component of the firms’ daily workload. Also, there is need for proactive collaboration among accounting professionals, auditing professionals, and AI experts to adapt to the evolving landscape (such as natural language processing) and secure the continued relevance of the accounting profession. Finally, the study recommended that educational institutions and professional bodies should collaborate to develop and offer comprehensive offer comprehensive AI education and training programs tailored to accounting professionals on the use of data analytics since computer is all about garbage in garbage out. Lack of training or incompetency on the use of data analytics will definitely result to negative effect on reporting accuracy.