The impact of AI-powered Fraud Detection Enhancing Accuracy &Transparency in Financial Reporting

Asso. Prof. Amira Hasaneen Mohamed

Abstract

In recent years, the prevalence of financial fraud has posed significant threats to the reliability and transparency of corporate financial reporting. Scandals such as Enron, WorldCom, and Wire card highlight the shortcomings of traditional audit procedures in identifying fraudulent behavior. As technology evolves, Artificial Intelligence (AI) has emerged as a transformative tool that can assist in detecting anomalies and patterns indicative of fraud. This research explores the integration of AI in detecting fraud within financial reporting and its implications for auditors and regulatory bodies.

This study explores the critical role of Artificial Intelligence (AI) in detecting fraud within financial reporting, addressing the insufficiency of traditional methods in the face of increasingly complex financial transactions and evolving fraud techniques. The research aims to assess the effectiveness of AI-powered models compared to traditional fraud detection methods. It analyzes various financial fraud techniques and investigates the impact of AI in detecting these frauds