The Role of Artificial Intelligence in Accounting: A Comprehensive Study of AI Integration in Bookkeeping, Auditing, and Fraud Detection

Author(s)	Mr. Ambresh M Kumbar, Dr. C S Munnolli
Country	India
Abstract	This study analyses the AI-driven structural transformation of Accounting Information Systems (AIS) across transactional bookkeeping, financial assurance auditing, and forensic fraud detection. Integrating RPA, ML, NLP, Deep Neural Networks, and Generative AI, modern AIS automates routine document processing, bank reconciliations, and journal entries, elevating human capital toward strategic advisory. In financial auditing, AI advances assurance from periodic sampling to continuous, 100% population testing using unsupervised algorithms (Isolation Forest, LOF, Auto encoders, LSTM) to detect complex, non-linear anomalies. In forensic accounting, intelligent systems deconstruct the Fraud Triangle via real-time control monitoring and sentiment analysis, backed by Explainable AI (SHAP, LIME) to maintain legal defensibility. Finally, the paper addresses governance imperatives under PCAOB standards, SOX Section 404, and the COSO Generative AI framework. Grounded in the AAQ-QAI interaction model, the study positions AI as a strategic catalyst complementing human expertise, advocating for modernized accounting curricula and adaptive regulatory oversight.
Keywords	AIS, RPA, COSO, AIS, LOF
Field	Business Administration
Published In	Volume 8, Issue 4, July-August 2026
Published On	2026-08-14
DOI	https://doi.org/10.36948/ijfmr.2026.v08i04.85774

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