Artificial Intelligence Challenges and Its Impact on Detection and Prevention of Financial Statement Fraud

Abstract

The detection and prevention of financial statement fraud is a critical concern in maintaining the credibility and reliability of financial reporting. In response to this ongoing challenge, researchers are exploring innovative solutions that leverage artificial intelligence (AI) technology. This study investigates the potential application of AI techniques, such as machine learning algorithms, natural language processing, and data mining, in enhancing forensic accounting practices for detecting and preventing financial statement fraud. Furthermore, the research examines the inherent challenges and limitations involved in implementing AI systems within forensic accounting. The findings of this research contribute valuable insights to organizations, regulatory bodies, and forensic professionals, assisting them in their efforts to combat financial fraud and promote the accuracy of financial reporting systems.