THE EXTENT TO WHICH ARTIFICIAL INTELLIGENCE TECHNOLOGIES

CONTRIBUTE TO SUPPORTING THE QUALITY OF PROFESSIONAL

PERFORMANCE OF ACCOUNTING AND AUDITING OFFICES

Prepared by:

Date:

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 TABLE OF CONTENTS

1. Introduction.............................................................................................................................3
2. Literature Review....................................................................................................................3
3. Research Objectives and Hypotheses.....................................................................................4
4. Methodology.............................................................................................................................4
5. Data Collection.........................................................................................................................5
6. Data Analysis...........................................................................................................................5
7. Financial Projections...............................................................................................................6
8. Expected Results......................................................................................................................6
9. Timeline....................................................................................................................................7
10. References............................................................................................................................7
11. Appendices...........................................................................................................................8

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 1. Introduction

Artificial Intelligence (AI) are man-made machines that perform functions that require

intelligence when performed by people ( Kurzweil, 1990) and hence appear to be intelligent. The

machine or the system is intelligent if it acts as if it is human(Turing,1950) e.g. extracting data from

invoices and financial documents the way a human accountant does or detecting anomalies in

transactions that may point to potential fraud the way a human auditor does. The rise of artificial

intelligence(AI) has made far reaching changes in various industries particularly in

manufacturing where AI driven robots have assisted in streamlining production processes and

in health care where AI has been used in disease diagnosis and in optimization of utilization of

health resources. The impact of AI in Accounting and audit practice is beginning to be felt given

that AI is a novel innovation. This research proposal aims to investigate the extent to which

AI supports quality of accounting and audit processes by professional accountants and

auditors and whether AI enhances efficiency, accuracy and reliability in accounting and

auditing.

2. Literature Review

The exciting new effort to make computers think (Haugeland,1985 ).The automation of

activities that we associate with human thinking, activities such as decision-making, problem

solving, and learning (Bellman, 1978).The art of creating machines that perform functions

that require intelligence when performed by people (Kurzweil, 1990 ).The study of how to

make computers do things which, at the moment, people are better(Rich and Knight,

1991)The study of mental faculties through the use of computational models (Charniak and

McDermott, 1985).Computational intelligence is the study of the design of intelligent

agents(Poole, 1998).AI can significantly improve audit quality than traditional methods

through identification of anomalies in transactions hence reducing risk of fraud(Agrawal et

al.,2019).AI and robotic process automation is used to automate repetitive and rule-based

accounting and auditing tasks such as data entry and reconciliation(Alles et al., 2020).Natural

Language Processing is used to analyse textual data in financial documents, contracts and

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emails improving risk assessment and compliance(Gupta et al., 2018).Artificial intelligence

in audit and accounting: development, current trends, opportunities and threats ( Zemankova,

A. 2019 ). Opportunities for artificial intelligence development in the accounting domain: the

case for auditing. Intelligent Systems in Accounting, Finance & Management (Baldwin et al.,

2006).Artificial intelligence and block chain in audit and accounting (Zemankova, A. 2019).

Artificial Intelligence (AI) in accounting & auditing (Hasan, A. R. 2021). The emergence of

artificial intelligence: How automation is changing auditing. Journal of emerging

technologies in accounting (Kokina, J., & Davenport, T. H. 2017). Accounting and auditing

with block chain technology and artificial Intelligence (Han, H., et al., 2023).Research ideas

for artificial intelligence in auditing: The formalization of audit and workforce

supplementation (Issa, H., et al., 2016). Blockchain technology, business data analytics, and

artificial intelligence: Use in the accounting profession and ideas for inclusion into the

accounting curriculum (Qasim, A., & Kharbat, F 2020). Artificial intelligence for audit,

forensic accounting, and valuation: a strategic perspective. (Naqvi, A. 2020). Artificial

intelligence: opportunities, issues and applications in banking, accounting, and auditing in

Nigeria. Asian Journal of Economics, Business and Accounting, (Ukpong, et al 2019). Is

artificial intelligence improving the audit process? (Fedyk, A., et al., 2022) .Automation of

accounting processes: impact of artificial intelligence. (Chukwuani, V. N., & Egiyi, M. A.

2020). Effect of artificial intelligence on the performance of accounting operations among

accounting firms in South East Nigeria. (Chukwudi et al 2018)

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 3. Research Objectives and Hypotheses

Research Objectives

Research Objective 1: To assess the current level of AI adoption in accounting and auditing practices

among various organizations in Kenya

Research Objective 2: To identify the factors influencing the adoption of AI in accounting and

auditing, including organizational size, technological readiness, and regulatory environment in Kenya

Research Objective 3: To examine the perceived benefits and challenges associated with AI adoption

in accounting and auditing, with a focus on improved accuracy, efficiency, and ethical considerations

in Kenya

Research Hypothesis 1

H0 (Null Hypothesis): There is no significant difference in the extent of AI adoption across different

industries within the accounting and auditing sector in Kenya.

H1 (Alternative Hypothesis): The extent of AI adoption varies significantly across different industries

within the accounting and auditing sector in Kenya

Research Hypothesis 2

H0: Organizational size has no significant impact on the adoption of AI in accounting and auditing in

Kenya

H1: Larger organizations are more likely to adopt AI in accounting and auditing due to their greater

resources and capacity for technology integration in Kenya

Research Hypothesis 3

H0: The perceived benefits of AI adoption in accounting and auditing do not significantly outweigh

the perceived challenges in Kenya

H1: Organizations perceive the benefits of AI adoption in accounting and auditing, such as increased

accuracy and efficiency, as outweighing the challenges in Kenya

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 4. Methodology

This research proposal will employ a mixed-methods approach, combining both quantitative and

qualitative methods to comprehensively assess the extent of AI utilization and its effects in the fields

of accounting and auditing.

Sampling Strategy:

The population for the quantitative phase will consist of certified accountants, auditors, and finance

professionals actively working in diverse industries. A stratified random sampling technique will be

used to ensure representation across sectors and firm sizes.

A sample size of 300 respondents will be selected from the population.

Data Collection:

A structured questionnaire will be developed based on existing literature and expert input. This

questionnaire will assess the frequency and extent of AI adoption in accounting and auditing practices.

Data will be collected through online surveys, distributed through professional networks and

organizations. Semi-structured interviews will be conducted to gather insights into the effects of AI in

accounting and auditing, including changes in workflow, accuracy, and potential challenges.

Data Analysis:

Descriptive statistical analysis will be used to determine the frequency and extent of AI adoption

among respondents. Inferential statistical tests, such as regression analysis, will be employed to

explore relationships between variables, such as firm size and AI adoption. Qualitative Phase:

Ethical Considerations:

Informed consent will be obtained from all survey participants and interviewees. Data confidentiality

and anonymity will be maintained throughout the research process. Ethical approval will be sought

from the Institutional Review Board (IRB) to ensure compliance with ethical guidelines. Quantitative

and qualitative findings will be integrated during the interpretation phase to provide a well-rounded

understanding of the extent and effects of AI use in accounting and auditing.

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 5. Data Collection

A structured questionnaire will be developed based on existing literature and expert input. This

questionnaire will assess the frequency and extent of AI adoption in accounting and auditing practices.

Data will be collected through online surveys, distributed through professional networks and

organizations. Semi-structured interviews will be conducted to gather insights into the effects of AI in

accounting and auditing, including changes in workflow, accuracy, and potential challenges

6. Financial Projections

Researcher(s) salary and benefits : $25,000

Research assistant(s) salary and benefits : $10,000

Survey platform subscription : $1,000

Interviews : $2,500

Travel and accommodation for on-site interviews : $1,500

Participant incentives and rewards : $1,250

Statistical analysis software licenses (e.g., SPSS or R) : $1,500

IRB application fees (if applicable) : $500

Contingency fund (10% of total budget) : $4,250

Total Projected Expenses : $48,250

Funding Sources:

We intend to seek funding for this research from a combination of sources, including:

Internal University Funding: We will apply for research grants from our institution to cover personnel

costs, data collection expenses, and software licenses. External Grants: We will explore opportunities

for external grants and research funding from organizations and foundations specializing in AI and

accounting research.

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Expected Benefits:

The research is expected to contribute to the academic community's understanding of AI adoption in

accounting and auditing. The findings may have practical implications for firms and professionals in

the field. The research could lead to recommendations for policymakers and regulatory bodies

regarding AI usage in accounting and auditing. The study may identify areas for further research and

exploration in the intersection of AI and accounting and auditing.

7. Expected Results

This study anticipates that the quantitative phase will reveal varying levels of AI adoption in

accounting and auditing, while the qualitative phase will provide deeper insights into the reasons

behind these patterns and the effects of AI on the profession

8. Timeline

Month 1: Project Initiation

Define research objectives and questions.

Conduct an extensive literature review.

Assemble the research team, if necessary.

Develop the initial research framework.

Months 2-3: Research Design and Ethics

Determine the research methodology (quantitative and qualitative).

Draft the survey questionnaire and interview guides.

Seek ethical approval from the Institutional Review Board (IRB).

Secure access to necessary data sources.

Months 4-5: Data Collection Preparation

Finalize the research instruments (questionnaire and interview guides).

Pre-test and refine the data collection tools.

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Identify potential survey participants and interviewees.

Establish contact with professional organizations and networks for data collection.

Months 6-8: Quantitative Data Collection

Distribute online surveys to the selected sample.

Monitor data collection progress and response rates.

Send follow-up reminders to non-respondents.

Continuously assess data quality.

Months 9-10: Qualitative Data Collection

Conduct in-depth interviews with key informants.

Transcribe and organize interview data.

Perform preliminary content analysis.

Months 11-12: Data Analysis

Begin quantitative data analysis (descriptive statistics).

Continue qualitative data analysis (thematic content analysis).

Identify patterns and themes in the data.

Look for connections between the quantitative and qualitative findings.

Months 13-14: Integration and Interpretation

Merge quantitative and qualitative findings.

Interpret the results and findings in the context of research questions.

Develop hypotheses based on the data.

Months 15-16: Discussion and Conclusion

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Draft the research report, including discussion and conclusion sections.

Highlight the implications of the findings for the accounting and auditing fields.

Identify potential future research directions.

Months 17-18: Final Report and Review

Revise and finalize the research report based on feedback.

Prepare the research report for submission to academic journals or other outlets.

Months 19-20: Presentation and Dissemination

Present the research findings at conferences, seminars, or workshops.

Disseminate the results through academic and industry publications.

Engage with professionals, policymakers, and stakeholders to share insights.

Months 21-22: Wrap-up and Reflection

Evaluate the research process and outcomes.

Prepare final documentation, including appendices and supplementary materials.

Archive research data and materials.

Month 23: Conclusion and Reporting

Submit the research report to relevant stakeholders and funders.

9. References

As indicated in the literature review

10. Appendices

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