Designing and Testing a Model of the Impact of Intelligent Accounting Systems on Financial Reporting Quality: The Mediating Role of User Trust and Managerial Decision-Making Capability

Abstract

Objective: This study aims to design and empirically test a model explaining how intelligent accounting systems influence financial reporting quality through the mediating roles of user trust and managerial decision-making capability. Methods and Materials: A mixed-methods sequential exploratory design was employed. In the qualitative phase, thematic analysis of semi-structured interviews with experts in accounting, finance, and information technology was conducted to identify key dimensions and construct the conceptual model. In the quantitative phase, data were collected via a researcher-developed questionnaire from financial managers and professional accountants in Iran’s oil industry. Structural equation modeling using the partial least squares approach (PLS-SEM) was applied, and measurement reliability and validity were confirmed through Cronbach’s alpha, composite reliability, and AVE. Findings: The structural model revealed a strong and significant effect of intelligent accounting systems on user trust (β=0.865), a significant effect of user trust on financial reporting quality (β=0.425), and a significant effect of managerial decision-making capability on financial reporting quality (β=0.432). The results further indicated that the influence of intelligent accounting systems on reporting quality is largely indirect and transmitted through the mediating constructs. High coefficients of determination demonstrated the strong explanatory power of the model. Conclusion: The findings confirm that financial reporting quality in intelligent accounting environments emerges from the joint interaction of technological infrastructure, user trust, and managerial decision-making capability, and that technological advancement alone is insufficient without behavioral and managerial alignment.