The Role of Artificial Intelligence in Developing the Accounting and Auditing Profession in Iraq

Abstract

In this study, we explore the effect of artificial intelligence (AI) in accounting and auditing domain in governmental and private banking institutions in Iraq. It also explores how to consider AI’s influence on quality of accounting practice and audit activity not just through organisation readiness, perceived usefulness, but also the perceived ease of use and governing mechanism as predictors of decision makers’ adoption and professional outcomes of AI. A comprehensive quantitative field survey was conducted using a well-organized questionnaire for Iraqi bank accountants and auditing officers. Data were analyzed using descriptive statistics, reliability analysis, correlation analysis, multiple regression and independent samples t-tests. The results reveal that the adoption of AI improves the quality of accounting processes, both in process and audit effectiveness. Aside from the behavioral components, the organisation readiness which companies are highly dependent on also has a significant impact on AI deployment. Governance mechanisms are additionally still focusing on the positive association between AI adoption and audit quality. Important contrasts were distinguished compared between the governmental and private banks, for which the private sector made more use of AI and thus better professional performances of AI in this regard with respect to the governmental banks. It shows (in short) that AI’s incorporation into accounting and the audit process is enabled not only by technology but also by expert and professional training, a system of sound governance structures and regulation. These findings may hold particular implications for banks' management, policymakers and professional organizations looking for financial reporting standards to put forward themselves and for the audit itself to implement through digital transformation to increase its performance.