Artificial Intelligence and Digital Assets in Financial Reporting: Implications for Transparency, Accuracy, Auditability, and Reporting Quality

References

[1] S. O. Abbas, A. Arotayo, D. Oduro, P. D. Ayanrinno, and G. O. Ikudehinbu, “Explainable artificial intelligence and data governance in US financial reporting: A scoping review of reporting quality, regulatory accountability, and decision transparency,” Journal of Scientific Research and Reports, vol. 32, no. 7, pp. 147–167, 2026.

[2] A. Alassuli, N. S. Thuneibat, A. Eltweri, K. Al-Hajaya, and K. Alghraibeh, “The impact of accounting digital transformation on financial transparency: Mediating role of good governance,” Journal of Risk and Financial Management, vol. 18, no. 5, Art. no. 272, 2025. MDPI

[3] H. M. Al-Hattami, “AI, blockchain, and cloud accounting in smart governance: How real-time audit reporting enhances transparency and decision quality,” Array, Art. no. 101091, 2026.

[4] A. H. J. Alhazmi, S. M. N. Islam, and M. Prokofieva, “The impact of artificial intelligence adoption on the quality of financial reports on the Saudi Stock Exchange,” International Journal of Financial Studies, vol. 13, no. 1, Art. no. 21, 2025. MDPI

[5] A. M. Bamhdi, “Analysis of intangible assets reporting standards and automation in KSA within an Islamic context – a case study,” Journal of Islamic Accounting and Business Research, vol. 17, no. 7, pp. 2036–2064, 2026.

[6] S. A. Bin-Nashwan, J. Z. Li, H. Jiang, A. R. Bajary, and M. M. Ma'aji, “Does AI adoption redefine financial reporting accuracy, auditing efficiency, and information asymmetry? An integrated model of TOE-TAM-RDT and big data governance,” Computers in Human Behavior Reports, vol. 17, Art. no. 100572, 2025.

[7] Bogdan, C.-D. Hațegan, R. M. Török, R.-G. Blidișel, D.-N. Popa, and R.-I. Pitorac, “Driving sustainable value. The dynamic interplay between artificial intelligence disclosure, financial reporting quality, and ESG scores,” Electronics, vol. 14, no. 16, Art. no. 3247, 2025. MDPI

[8] V. Bogdan and D. N. Popa, “Artificial intelligence for enhanced integrated reporting in Romania,” in Artificial intelligence in finance, accounting and business administration. Contributions to Finance and Accounting, C. D. Sabău-Popa, Ed. Springer, Cham, 2026.

[9] D. Darmawati, N. I. Jaafar, R. Hs, H. K. Baja, A. J. Purisamya, A. M. W. Yolanda, ... & M. R. P. Juanda, “The role of artificial intelligence in improving the efficiency and accuracy of local government financial reporting: A systematic literature review,” Journal of Risk and Financial Management, vol. 18, no. 11, Art. no. 601, 2025. MDPI

[10] S. Farrokhi, M. Zareian, and K. S. Mobasser, “The role of artificial intelligence adoption in transforming accounting practices, audit quality, and financial reporting transparency: A multi-framework empirical analysis,” Creative Economy and New Business Management Approaches, pp. 45–64, 2026.

[11] M. Gutierrez-Bustamante and L. Espinosa-Leal, “Natural language processing methods for scoring sustainability reports—a study of Nordic listed companies,” Sustainability, vol. 14, no. 15, Art. no. 9165, 2022. MDPI

[12] Hackim Musah, Thilina Gamagedara, Estehad Pathan, Amos Afugu, Atish Ghosh, Suk Kyoung Lee, Zhen-Fei Liu, Aaron S. Rury, and Wen Li, “Generating long-lived highly excited carriers in undoped perovskite nanostructures by two-photon upconversion,” Nano Letters, vol. 26, no. 32, pp. 10762–10769, 2026. ACS

[13] M. M. Husin, “Artificial intelligence in financial reporting: Enhancing transparency, auditability and trust,” 2026. IntechOpen

[14] R. K. Jena, “Preparing financial reporting professionals for virtual asset disclosure and assurance: Stakeholder readiness for metaverse-based accounting systems,” International Journal of Financial Studies, vol. 14, no. 5, Art. no. 126, 2026. MDPI

[15] Johri, “Impact of artificial intelligence on the performance and quality of accounting information systems and accuracy of financial data reporting,” in Accounting Forum, vol. 49, no. 5, pp. 1096–1120, Routledge, Oct. 2025.

[16] H. Juma’h, M. Chuang, and A. Harfouche, “Integrating AI into financial reporting and investment: Multi-layered framework,” Journal of Decision Systems, vol. 35, no. 1, 2026. Taylor & Francis

[17] F. Khan, S. Ullah Jan, and H. M. Zia-ul-Haq, “Artificial intelligence adoption, audit quality and integrated financial reporting in GCC markets,” Asian Review of Accounting, vol. 33, no. 3, pp. 464–495, 2025. Emerald

[18] S. U. Lee, H. Perera, Y. Liu, B. Xia, Q. Lu, L. Zhu, J. Cairns, and M. Nottage, “Integrating ESG and AI: A comprehensive responsible AI assessment framework,” AI and Ethics, vol. 5, pp. 5121–5148, 2025. Springer

[19] T. G. Majekodunmi, “Embedding AI in ESG-financial reporting systems to enhance non-financial disclosure integrity, assurance, and investor decision relevance,” International Journal of Advanced Research and Publication Reviews, vol. 2, no. 6, pp. 464–484, 2025.

[20] K. O. Mayegun and C. Nwanevu, “Harnessing big data and AI to revolutionize sustainability accounting and integrated corporate financial reporting,” International Journal of Computer Applications Technology and Research, vol. 14, no. 6, pp. 111–128, 2025.

[21] F. Mustafa, J. Smolarski, and A. Elamer, “The convergence of artificial intelligence and sustainability reporting: A systematic review of applications, challenges and future directions,” Business Strategy and the Environment, pp. 1–24, 2025.

[22] N. Neiroukh and D. Çağlar, “Information systems quality and corporate sustainability: Unpacking the interplay of financial reporting, artificial intelligence, and green corporate governance,” Systems, vol. 13, no. 7, Art. no. 537, 2025. MDPI

[23] J. Ni, J. A. Bingler, C. Colesanti-Senni, M. Kraus, G. Gostlow, T. Schimanski, D. Stammbach, S. A. Vaghefi, Q. Wang, N. Webersinke, T. Wekhof, T. Yu, and M. Leippold, “Paradigm shift in sustainability disclosure analysis: Empowering stakeholders with Chatreport, a language model-based tool,” SSRN Electronic Journal, 2023.

[24] M. R. Rabbani, “Impact of digital advancements on accounting, auditing and reporting literature: Insights, practice implications and future research directions,” Journal of Accounting & Organizational Change, 2024. Emerald

[25] N. Rane, S. Choudhary, and J. Rane, “Artificial intelligence-driven approaches to strengthening environmental, social, and governance (ESG) criteria in sustainable business practices: A review,” Journal of Academic Research, vol. 1, no. 2, 2024.

[26] A. Rajput and I. Katamba, “Leveraging artificial intelligence and big data in public accounting: Redefining audit practices and financial reporting,” International Journal of Research Publication and Reviews, vol. 5, no. 11, pp. 5516–5531, 2024.

[27] A. Rerung, E. S. Paranita, Ay. R. Agung, F. Salamah, and E. M. Tandililing, “The influence of fintech innovations, ESG reporting, and blockchain technology on financial transparency and accountability,” Journal of Academic Research, vol. 1, no. 2, 2024.

[28] P. Roszkowska, “Fintech in financial reporting and audit for fraud prevention and safeguarding equity investments,” Journal of Accounting & Organizational Change, vol. 17, no. 2, pp. 164–196, 2021. Emerald

[29] Sarker, “AI-based modeling: Techniques, applications and research issues towards automation, intelligent and smart systems,” SN Computer Science, vol. 3, no. 2, Art. no. 158, 2022. Springer

[30] C. Sawaya, F. C. Khalil, N. Jabbour Al Maalouf, and J. Kaspard, “Revolutionizing audit practice in emerging economies: The role of artificial intelligence in enhancing the audit of consolidated financial statements,” Cogent Business & Management, vol. 13, no. 1, 2026. Taylor & Francis

[31] K. Shatila, “Artificial intelligence capability and real-time financial reporting: The mediating roles of automation, integration, and data quality,” International Journal of Disclosure and Governance, 2026. Springer

[32] N. Shengelia, Z. Tsiklauri, A. Rzepka, and R. Shengelia, “The impact of financial technologies on digital transformation of accounting, audit and financial reporting,” Economics, vol. 105, no. 3, pp. 385–398, 2022.

[33] H. Tian, J. Wang, and Y. Cai, “Artificial intelligence adoption and corporate ESG performance,” Business Strategy and the Environment, 2025. Wiley

[34] S. Umair, “Assessing the implementation of sustainable development goals: Does integrated reporting matter?” Social and Environmental Accountability Journal, vol. 43, no. 2, pp. 190–191, 2023. Taylor & Francis

@article{1723434,
      author = {Jean-Pierre Sfeir},
      title = {Artificial Intelligence and Digital Assets in Financial Reporting: Implications for Transparency, Accuracy, Auditability, and Reporting Quality},
      journal = {Iconic Research And Engineering Journals},
      year = {2026},
      volume = {9},
      number = {12},
      pages = {3987-4003},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1723434.pdf},
      abstract = {The field of accounting and financial reporting is rapidly transforming with the advent of Artificial Intelligence (AI) and digital assets, which have brought automated processing, intelligent analytics, blockchain transaction records and a novel means of financial value. However, they also bring challenges through integration with regards to asset classification, valuation, disclosure, data quality, cyber security, compliance and professional oversight. This research explores how AI and digital assets impact financial reporting quality, focusing on aspects such as accuracy, transparency, timeliness, and auditability. The study is based on the Technology–Organization–Environment framework, Technology Acceptance Model, Agency Theory, and Institutional Theory to build an integrated conceptual framework between the adoption of AI and the digital-asset accounting capability and financial reporting outcomes. The key technological elements are automation, predictive analytics, identification of anomalies, integration with blockchain, measurement of digital assets and disclosure capabilities, and the regulatory compliance and cybersecurity are the important governance conditions. The study suggests that the successful application of AI and digital-asset technologies can help to bolster reporting accuracy, improve transaction traceability, improve transparency, speed reporting times, and enable continuous auditing. Meanwhile, the technology benefits are contingent on having proper controls, human supervision, accurate data and regulations. The study offers a holistic view of the evolving dynamics between the intelligent accounting systems and the digital-asset reporting process, and offers real world implications for accountants, auditors, financial institutions, regulators, and policymakers to create credible, transparent, and technology-driven financial reporting in digital finance.},
      keywords = {Artificial intelligence; digital assets; financial reporting; blockchain; accounting information systems; reporting quality; transparency; auditability; regulatory compliance.},
      month = {June},
  }