The Effect of Artificial Intelligence Utilization in Auditing on Financial Reporting Quality: The Moderating Role of Auditor Experience
Keywords:
Keywords, Artificial intelligence, auditing, financial reporting quality, auditor experience, moderator roleAbstract
This study aimed to examine the impact of artificial intelligence (AI) utilization in auditing on financial reporting quality and the moderating role of auditor experience. This applied research used a descriptive–correlational design. The statistical population included all auditors employed in the Audit Organization and audit firms certified by the Tehran Stock Exchange in 2025. The sample size was determined using Morgan’s table and selected through simple random sampling. Data were collected using a researcher-made questionnaire comprising three sections: AI use in auditing (7 items), financial reporting quality (8 items), and auditor experience (5 items), with validity and reliability confirmed. Data were analyzed using Pearson correlation and hierarchical regression with SPSS version 26. Results indicated a significant positive relationship between AI use in auditing and financial reporting quality (β=0.642, p<0.001), explaining about 41% of the variance. Auditor experience also had a significant positive effect on financial reporting quality (β=0.402, p<0.001). The moderating role of auditor experience was confirmed, showing that higher experience strengthens the positive effect of AI use (β=0.289, p<0.001). The final model explained 57% of the variance in financial reporting quality and demonstrated good statistical fit (F=68.45, p<0.001). The findings reveal that the use of AI in auditing enhances financial reporting quality, and auditor experience significantly strengthens this effect. Consequently, auditor training and professional development, along with investment in technological infrastructure, are essential to maximize the benefits of AI in auditing.
Downloads
References
Abu Huson, Y., Sierra-García, L., & Garcia-Benau, M. A. (2024). A bibliometric review of information technology, artificial intelligence, and blockchain on auditing. Total Quality Management & Business Excellence, 35(1-2), 91-113. https://doi.org/10.1080/14783363.2023.2256260
Al-Dahabi, Z. M. A., Hajjaj, R. Y., & Algazo, F. A. (2024). Attitudes of auditors about employing artificial intelligence in the auditing process: Jordanian auditing companies are an example. International Journal of Science and Research Archive, 11(2), 1765-1776. https://doi.org/10.30574/ijsra.2024.11.2.0679
Al-Htaybat, K., & von Alberti-Alhtaybat, L. (2017). Big data and corporate reporting: Impacts and paradoxes. Accounting, Auditing & Accountability Journal, 30(4), 850-873. https://doi.org/10.1108/AAAJ-07-2015-2139
Al-Omush, A., Almasarwah, A., & Al-Wreikat, A. (2025). Artificial intelligence in financial auditing: redefining accuracy and transparency in assurance services. EDPACS, 1-20. https://doi.org/10.1080/07366981.2025.2459490
Appelbaum, D., Kogan, A., & Vasarhelyi, M. A. (2017). Big data and advanced analytics in external audits: An empirical approach. The Accounting Review, 92(5), 1-27. https://doi.org/10.2308/ajpt-51684
Bhavsar, D. (2024). Policies on Artificial Intelligence Chatbots Among Academic Publishers: A Cross-Sectional Audit. https://doi.org/10.1101/2024.06.19.24309148
Cao, Y., & Li, Y. (2021). AI-powered audit: A literature review and future research agenda. Journal of Emerging Technologies in Accounting, 18(1), 1-17.
Farhadi Touski, O., & Doustian, R. (2025). Developing New Technologies in Internal Auditing with the Help of Artificial Intelligence: Deep Learning Enables Anomaly Detection in Financial Accounting Data. Investment Knowledge, 14(55), 597-612. https://doi.org/10.30495/jik.2025.23638
Fidyah, F., Usman, S., Pradita, A. E., & Setyawati, D. M. (2024). The Impact of Artificial Intelligence on Auditing Processes and Accuracy: A Future Outlook. Dinasti International Journal of Economics, Finance & Accounting (DIJEFA), 5(4). https://doi.org/10.38035/dijefa.v5i4.3224
Ghasemi, M. (2021). Data mining in auditing: Challenges and opportunities. Journal of Accounting Research, 12(3), 45-62.
Hashid, A., & Almaqtari, F. A. (2024). The Impact of Artificial Intelligence and Industry on Transforming Accounting and Auditing Practices. Journal of Open Innovation: Technology, Market, and Complexity.
Hemmati, A. (2024). The Impact of Blockchain and Artificial Intelligence on Auditing Quality. Journal of New Research Approaches in Management and Accounting, 8(28), 941-960.
Hossini, A. (2020). The role of training and experience in technology adoption by auditors. Iranian Accounting Review, 10(2), 101-123.
Kazemi Barhabicheast, F., & Bani Talebi Dehkordi, B. (2024). Investigating the Impact of Artificial Intelligence on Tax Compliance and Financial Regulations in Accounting, Auditing, and Financial Services Companies. The 14th International Conference on Management, Accounting, and Economic Development, https://civilica.com/doc/2221376
Khorsheed, H. S., Ismael, N. B., & Mahmod, S. H. O. (2024). The impact of artificial intelligence and machine learning on financial reporting and auditing practices. International Journal of Advanced Engineering, Management and Science, 10(6), 30-37. https://doi.org/10.22161/ijaems.106.4
Kokina, J., & Davenport, T. H. (2017). The emergence of artificial intelligence: How automation is changing auditing. Journal of Emerging Technologies in Accounting, 14(1), 115-122. https://doi.org/10.2308/jeta-51730
Kuenkaikaew, S., & Vasarhelyi, M. A. (2022). The impact of artificial intelligence on internal audit. Managerial Auditing Journal, 37(6), 757-774.
Lak, H. (2024). Application of Artificial Intelligence and Machine Learning in Continuous Auditing and Detecting Financial Fraud.
Li, H., Dai, J., Gershberg, T., & Vasarhelyi, M. A. (2018). Understanding usage and value of audit analytics for internal audits. Journal of Emerging Technologies in Accounting, 15(2), 69-87.
Mohammadi, P., & Tahmasbi, E. (2024). The application of artificial intelligence in auditing: Advantages and challenges. Management and Accounting in the Third Millennium, 28, 149-160.
Rosli, K. (2022). The role of AI in enhancing audit efficiency: Evidence from emerging markets. Asian Journal of Accounting Research, 7(1), 34-49.
Saadati, E., Ansari, Z., Farahmandnia, A., & Asadi Mehr, K. (2025). A strategy-oriented approach to the application of artificial intelligence technology in accounting: With reference to auditing and management accounting trends. Strategic Management Accounting Quarterly, 2(2), 1-20.
Shahbazbeigi, A. (2024). Application of Artificial Intelligence and Machine Learning in Accounting and Auditing. Transactions on Data Analysis in Social Science, 6(2), 21-30.
Sutton, S. G., & Arnold, V. (2018). Opportunities for AI in accounting. International Journal of Accounting Information Systems, 28, 1-2.
Takhtaei, N., Shalalnejad, A., & Mohammad, S. (2023). Artificial Intelligence and Blockchain in Accounting and Auditing. Accounting and Management Perspectives, 6(82), 224-229.
Thottoli, M. M. (2024). Leveraging information communication technology (ICT) and artificial intelligence (AI) to enhance auditing practices. Accounting Research Journal, 37(2), 134-150. https://doi.org/10.1108/ARJ-09-2023-0269
Zarei, H., Hajihia, Z., & Kiqbadi, A. R. (2024). Investigating the Impact of Artificial Intelligence on the Quality of Financial Audit Processes. Professional Auditing Research, 4(16), 64-79.
Zhang, J. (2020). Artificial intelligence in accounting: Opportunities and challenges. Journal of Accounting Literature, 44, 102-120.
Downloads
Published
Submitted
Revised
Accepted
Issue
Section
License
Copyright (c) 2025 Zeinab Armoonmanesh (Corresponding author); Hassan Pourkhorshid (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
