Published Online:October 2025
Product Name:The IUP Journal of Accounting Research & Audit Practices
Product Type:Article
Product Code:IJARAP191025
DOI:10.71329/IUPJARAP/2025.24.4.370-383
Author Name:Safeeda K A and Ganesh R
Availability:YES
Subject/Domain:Finance
Download Format:PDF
Pages:370-383
The paper focuses on investors’ perception of artificial intelligence (AI) integration in accounting disclosures, in light of historical and contemporary accounting shenanigans worldwide. Investment decisions result from various analyses, such as fundamental analysis of corporate accounts. AI is widely used to create audit reports and financial statements. Investigating investors’ point of view regarding AI adoption brought novelty to the study. The paper concentrates on investors’ trust in AI-driven reports, the role of AI reports in fundamental analysis, and investors’ apprehensions about integrating AI into financial reporting and audit. Primary data were collected from 200 equity investors in Indian stock market through a well-structured questionnaire. According to the findings, investors’ attitude toward adopting AI in financial disclosures was generally favorable. AI adoption is regarded as beneficial by investors who prioritize fundamental analysis, as they believe it can mitigate the impact of accounting shenanigans. They trust AI-based reporting over traditional reporting. Young investors have a favorable perception of AI adoption, while senior citizens exhibit low trust in AI-based financial reporting. This finding is useful for policymakers and executives in their decision-making processes regarding the integration of AI into corporate disclosures. It is recommended that regulators establish policies and regulations that protect stakeholder interests from potential risks involved in AI implementation.
The ongoing instances of accounting shenanigans in the world remind us of the importance of lucidity and fidelity in financial disclosures.