Digitalization of Accounting Practices and Financial Reporting Quality: The Experience of Professional Accountants in Nigeria
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This paper examines the effect of digitalization of accounting practices on financial reporting quality in Nigeria. A web-based self-completing questionnaire (Google form) was used to gather primary data from a sample of 372 registered and active members of Institute of Chartered Accountants of Nigeria (ICAN) and the Association of National Accountants of Nigeria (ANAN). A survey research methodology was used. A total of 352 completed questionnaires were utilised for analysis. Software such as SPSS and SPSS AMOS were used to analyse the data. The findings showed that artificial intelligence significantly and favourably affects the quality of financial reporting. On the other hand, the study shows that blockchain technology has negative and insignificant impact on quality of financial reporting in Nigeria. This implies that in order for accountants to remain relevant in the accounting profession they must urgently abreast themselves with these emerging technologies. The paper recommends that entity managers should give top priority to implementing and incorporating of cutting-edge digital technology, such as artificial intelligence, into their accounting procedures. Accounting professionals are also encouraged to keep up with the latest developments in digital tools and technologies that can improve the quality of their work and financial reporting. Policymakers should create and enforce rules and regulations that promote the use of digital tools and technologies in accounting practices. Finally, stakeholders should continue to be receptive to the possibilities of block chain technology and stay up to date on any advancement that may affect its usefulness in financial reporting.
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