Artificial Intelligence in Forensic Accounting

Introduction

Today many industries are turning to Artificial Intelligence (AI) to perform tasks that were previously performed by humans. (Omoteso, 2012) When it comes to processing large amount of data, detecting fraud by identifying unusual patterns, communicating with customers online, and performing other important tasks, the financial service industry has embraced AI. For example, in facial reorganization, voice recognition, or Machine Learning (ML), there are a few excellent use cases. In addition to improving customer value propositions, new technologies also improve the efficiency and effectiveness of the organization.It has been a hot topic in recent years to predict AI applications that will be available in the financial services sector soon. Especially as blockchains and cryptocurrency acceptance increase, there is a high chance that transaction security and account security will improve. Due to reduced or eliminated transaction costs, the need for a intermediary is eliminated. All types of digital assistants and applications will continue to improve themselves using a cognitive computing. From debt repayment to tax adjustment, smart machines can plan and perform both short-term and long-term tasks (Sandhu and Saluja, 2023). A greater degree of transparency will result in more detailed, accurate and complete customer reporting, which can take hours to complete by humans. During Artificial Intelligence, general accounting officers left the accounting system to complete a few more complex tasks (Saluja et al.,2021). This will significantly improve job performance, reduce errors, increase corporate productivity, and allow the accounting industry to continue to transform the accounting field. The accounting industry has a long history of applying artificial intelligence (AI) applications, especially financial reporting and auditing. The recent development of AI products has contributed to the development of robots and robust infrastructure of experts in accounting software. So, this emerging technology has made a huge difference in the market environment and affected the business activity. (Berdiyeva et al, 2021) The advent of accounting software and the new AI developments have completely transformed accounting systems. Highly intelligent Artificial Intelligence Algorithms can meet the need for new power in the financial sector as computer computing power grows. (Kokina & Davenport, 2017) AI is widely used in investment management, algorithm trading, fraud detection, lending, and underwriting, to name just a few. Administrators will be able to determine illegal compliance using AI. This is the emergence of experience based on supervision of transaction and analysis of large amounts of data, while the required skills and knowledge of regulators will be discussed. Artificial intelligence depends on understanding the nature of human intelligence by creating computer programs capable of simulating human behavior and provide participants with the information they need to help them perform various decisions quickly and timely. This has led to the development of the concept of accounting in many areas, most notably the integration of accounting with the law, which has led to the emergence of what is known as Forensic Accounting, which crystallized in two terms (Accounting; Forensics); thus, the term accounting means the identification, recording, classification and summarizing of economic events in a logical manner (Wong & Venkatraman, 2015). The organization provides financial information to make economic decisions; with regard to the term Forensic, it is a term associated with the courts of law. A forensic accountant needs such technology-based programs and mimics the human mind. It also has great speed in providing the necessary information and power beyond human capabilities in terms of speed and accuracy. Therefore, this study has been helpful in showcasing the impact of artificial intelligence in the performance of a forensic accountant.