The Impact of Digital Transformation on the Quality of Financial Reporting

Abstract

This study aims to examine the impact of digital transformation on the quality of financial reporting in Iraqi banks listed on the Iraq Stock Exchange, in light of the rapid developments in information and communication technologies. Digital transformation, through the use of electronic accounting systems, big data analytics, artificial intelligence, and other advanced technologies, contributes to improving the accuracy and reliability of financial information, as well as enhancing the qualitative characteristics of financial reporting such as relevance, faithful representation, and comparability. Moreover, digital transformation helps reduce human errors and limit earnings management practices. The study concludes that adopting digital transformation technologies, particularly big data and cloud computing, plays a significant role in improving the quality of financial reports and supporting the decision-making process for users of financial statements, emphasizing the necessity of providing adequate technical infrastructure.