2.

3 Empirical Review

1. Vijaya Kanaparthi's (2024) examination of the transformative effects of blockchain,

artificial intelligence (AI), and machine learning (ML) on financial accounting showcases the

significant strides towards efficiency and accuracy. This study delineates the progressive

integration of advanced technologies in streamlining financial processes, heralding a new era

of digital finance. The analysis pivots around the quantifiable benefits and strategic

implications of these integrations, underscoring a paradigm shift towards automated and

intelligent financial reporting systems. However, Kanaparthi’s research skirts the direct

implications for the Nigerian financial context, an area ripe for exploration. The findings

pave the way for a deeper inquiry into localized impacts and adaptation strategies, suggesting

a fertile ground for extending this dialogue to encompass Nigeria's unique financial

ecosystem.

2. Khoa Lam, Benjamin Lange, et al. (2024) present a seminal framework in "A

Framework for Assurance Audits of Algorithmic Systems," paralleling the rigor of financial

audits in the algorithmic realm. This proposition introduces a structured methodology to

instill transparency and accountability within AI systems, a necessary evolution given the

increasing reliance on automated decision-making in finance. Their work serves as a

cornerstone for establishing standardized audit protocols for AI, contributing significantly to

the discourse on AI governance. While the framework is universal in application, its

relevance to the Nigerian financial audit landscape signifies an uncharted territory, offering a

blueprint for integrating AI audits into existing financial practices.

3. Oluwagbade et al. (2024), through their study "Challenges and Opportunities of

Implementing Artificial Intelligence in Auditing Practices: A Case Study of Nigerian

Accounting Firms," dive into the dichotomies presented by AI in auditing practices within

Nigeria. This localized exploration sheds light on the nuanced challenges and burgeoning
opportunities within the Nigerian context, anchoring the discourse in practical realities faced

by firms. Their findings underscore the dual-edged nature of AI adoption, highlighting the

imperative for skill development and robust data security measures. The study’s geographical

specificity provides critical insights but also beckons broader applicability and comparative

studies across different Nigerian regions and beyond.

4. Khoa Lam, et al. (2024) in "A Framework for Assurance Audits of Algorithmic

Systems" sets out to carve a new niche in audit methodologies, particularly in the AI

dominion, bridging traditional audit practices with modern algorithmic demands. Through

rigorous proposal and discussion, the team pioneers a criterion-based framework aimed

squarely at enhancing AI systems' transparency and accountability. This fresh lens on

auditing uncovers a pathway mirroring traditional financial audit virtues, yet tailored for the

AI era, suggesting a new audit paradigm intertwining technical and ethical threads. Despite

its groundbreaking approach, the study’s scope remains broad, missing a direct lens on

Nigerian financial environments. This gap echoes a broader call for localized insights, where

the current research could extend these global frameworks into Nigeria's unique financial

landscape, thus offering a tailored audit blueprint for AI in Nigerian financial systems.

5. Oluwagbade et al (2024)’s "Challenges and Opportunities of Implementing

Artificial Intelligence in Auditing Practices: A Case Study of Nigerian Accounting Firms"

delved into the AI auditing terrain, particularly within Nigeria, offering a lens into the local

accounting milieu. Employing a survey research design peppered with questionnaires, the

study navigates through the nuanced landscape of AI in auditing, highlighting a dichotomy of

significant benefits alongside formidable challenges, such as data security and the requisite

for upskilling. This local vantage point presents a dual-edged sword, where AI's potential is

palpable, yet tethered by tangible hurdles. The study, while rich in local flavor, primarily

orbits around Lagos, sketching a potential research avenue for a broader Nigerian
perspective. Herein lies an opportunity for the current study to expand this narrative,

exploring AI auditing's contours across Nigeria's diverse financial ecosystem, thereby

broadening the empirical lens beyond the metropolitan confines of Lagos.

6. Carsten Maple, Lukasz Szpruch, et al. (2023) in "The AI Revolution: Opportunities

and Challenges for the Finance Sector," dissect the multifaceted impacts of AI on the finance

sector at large. Their comprehensive review oscillates between the transformative potential

and the impending challenges, laying a balanced viewpoint that catalyzes regulatory and

ethical introspection. While casting a wide net on the global finance sector, the insights

offered beckon a tailored examination within the Nigerian financial reporting sphere,

suggesting an alignment of global trends with local practices.

7. Qinghua Lu, Yuxiu Luo, et al. (2023)'s "Developing Responsible Chatbots for

Financial Services" ventures into the ethical realms of AI, proposing a Responsible AI

Pattern Catalogue tailored for financial services. This study transcends conventional

applications, venturing into the moral fabric of AI deployments, a critical examination given

the rising autonomy of AI solutions. Their pattern-oriented approach furnishes a scaffold for

ethical AI, a framework that, while not directly addressing financial reporting, echoes the

broader ethical considerations pertinent to AI's financial applications, including those in

Nigeria.

8. Carsten Maple, et al. (2023) examined "The AI Revolution: Opportunities and

Challenges for the Finance Sector". This 2023 collaborative piece steers through the

tumultuous waters of AI within the finance sector, charting both groundbreaking

opportunities and lurking challenges. The study, through meticulous analysis and spirited

discussion, unfolds the narrative of AI's transformative potential while casting a spotlight on

the imperative for robust regulatory frameworks. Here, Maple and team distill insights that,

while globally tuned, echo the universal call for balance between innovation and oversight.
The narrative, though expansive, skims over the peculiarities of the Nigerian financial

tableau. This oversight serves as a springboard for the current research, urging a dive into

how these global revelations sit within, and potentially shape, Nigeria’s finance sector,

thereby filling the contextual void with empirical evidence and localized interpretation.

9. Qinghua Lu, Et al. (2023) - "Developing Responsible Chatbots for Financial

Services: A Pattern-Oriented Responsible AI Engineering Approach":In 2023, Qinghua Lu

and associates embark on a mission to infuse ethical DNA into financial service chatbots,

championing a pattern-oriented responsible AI engineering approach. Their study introduces

a novel Responsible AI Pattern Catalogue, geared towards sculpting AI systems that are not

only efficient but ethically attuned. This foray into responsible AI development, while

pioneering, narrows its focus to chatbot technology, partially sidelining broader financial

reporting mechanisms. Nonetheless, the principles laid out could serve as ethical cornerstones

for broader AI applications in finance. This provides a unique intersection for the current

study to explore, particularly in evaluating how such ethical frameworks can be adapted and

integrated into Nigeria’s financial reporting landscapes, hence offering a bridge between

ethical AI constructs and financial reporting praxis.

10. Danielsson and Uthemann's 2023 analysis "On the use of artificial intelligence in

financial regulations and the impact on financial stability" ventures into the regulatory

landscapes shaped by AI's ascendancy in finance, probing its multifaceted impacts on

financial stability. Through analytical rigor, the study unveils a nuanced blueprint proposing

critical criteria for AI's prudent regulation, spotlighting inherent risks to financial ecosystems.

While its purview extends globally, the discourse skirts around the nuances particular to

Nigeria's regulatory environs, presenting a canvas ripe for exploration. This lacuna beckons a

tailored investigation within the current study, pondering how these global regulatory
paradigms could be recalibrated to fit Nigeria's financial stability narrative, thus bridging

global insights with local exigencies.

11. Lars Hillebrand et al. (2023) "Improving Zero-Shot Text Matching for Financial

Auditing with Large Language Models” endeavor marks a significant leap towards enhancing

auditing's precision through AI, specifically via advanced text-matching techniques

empowered by large language models. This novel approach promises to elevate the auditing

process, underscoring significant efficiency gains. Although centered on auditing, the study’s

implications for financial reporting, particularly in harnessing AI to bolster accuracy and

efficiency, are unmistakable. However, its direct application within Nigerian contexts

remains uncharted. The current research could seize this opportunity to transpose these

advancements onto Nigeria's auditing and reporting terrain, potentially revolutionizing local

practices with global AI innovations.

12. Barry Quinn (2023) "Explaining AI in Finance: Past, Present, Prospects"

retrospective navigates through AI's evolutionary trajectory in finance, spotlighting the

burgeoning role of Explainable AI (XAI). By dissecting historical trends and simulating

future trajectories, Quinn emphasizes XAI's criticality in fostering trust and responsible

decision-making in finance. Though the study casts a wide historical net, its direct relevance

to Nigeria's financial sectors and reporting standards is not delineated, positing an exploratory

avenue for the current research to investigate XAI’s potential and applicability within

Nigeria’s financial ecosystem, thereby enriching the local discourse on AI transparency and

accountability.

13. Germà Coenders & Núria Arimany Serrat (2023) "Accounting statement analysis

at industry level: A gentle introduction to the compositional approach" introduces an

innovative compositional data analysis method for financial statement analysis. This tutorial-

style exploration not only sheds light on financial ratio analysis issues but also paves the way
for new methodological approaches in financial reporting. While the study provides valuable

insights into data handling and interpretation, its application to the Nigerian financial

reporting landscape is not directly addressed, presenting an opportunity for the current study

to adapt and apply these compositional analysis techniques within the Nigerian financial

services sector, offering a fresh perspective on financial statement analysis.

14. Neha Garg and Neetu Jain's (2023) study, "Artificial Intelligence Technology in

Banking Sector: A Systematic Literature Review," delves into the widespread adoption and

impact of AI technologies in banking. The study, based on a systematic literature review of

research from 2007 to 2022, highlights AI's significant role in enhancing customer service,

employee productivity, and overall organizational performance within banks. The research

encompasses a range of AI applications from fraud detection to customer relationship

management, showcasing AI's transformative potential in the sector. However, the study also

points out the prevalence of AI application studies in developed countries, marking a

limitation and suggesting a broader scope for future research.

15. Nur Azira Norzelan, et al. (2023) - "Technology acceptance of artificial

intelligence (AI) among heads of finance and accounting units in the shared service industry"

delve into the AI technology acceptance among finance and accounting leaders in the shared

service sector. Through a survey of 75 heads or representatives, they illuminate the

significant influence of performance expectancy, attitude, skill, and technical capability on AI

technology acceptance. While shedding light on the shared service industry's disposition

towards AI, the findings' applicability to broader financial services, particularly in Nigeria,

remains untapped. This gap invites the current research to consider how these factors might

similarly or differently affect AI acceptance in Nigerian financial service firms, enriching the

understanding of AI’s integration into local business practices.

 16. Yi Han et al.'s (2023) study, "The Impact of Artificial Intelligence on the

Financial Services Industry," conducted at Shandong University of Science and Technology,

explores AI's burgeoning role across various financial services sectors. The study illuminates

AI's capabilities in enhancing investment decisions, risk assessment, fraud detection, and

customer service through advanced analytics and 24/7 virtual assistance. While AI's

integration promises substantial efficiency and customer satisfaction improvements, it also

introduces challenges regarding data privacy, security, ethics, and the potential for job

displacement. The research advocates for a multi-level, in-depth discussion on technology,

policy, and ethics to navigate the opportunities and hurdles AI presents effectively. Future

research directions suggested include deeper exploration into AI's specific applications within

financial services and the formulation of strategies to balance AI benefits against potential

risks.

17. Eno Gregory Ukpong's (2022) research, titled "Integration of Artificial

Intelligence Applications for Financial Process Innovation by Commercial Banks in Nigeria,"

explores the adoption and impact of AI technologies by Nigerian commercial banks. The

study aims to assess how AI applications can innovate financial processes, focusing on credit

risk management, personalized banking experiences, and implementation challenges. By

setting specific objectives and hypotheses, the study uses a mixed-methods approach to

gather insights from the Nigerian banking sector. Although detailed findings are not provided

in the snippet, the research likely offers valuable conclusions on AI's role in enhancing

banking operations and customer service in the Nigerian context. It contributes to the

understanding of AI's potential and challenges in emerging markets, though it may benefit

from comparative analyses with other regions to enrich its conclusions.

18. Md Mahfuzur Rahman et al.'s (2021) study on the adoption of artificial

intelligence (AI) in banking services within Malaysia, titled "Adoption of artificial

intelligence in banking services: an empirical analysis," aims to understand the significance

and hurdles in incorporating AI in the banking industry. It explores factors influencing

Malaysian banking customers' intention to adopt AI in banking services. The research utilizes

both qualitative and quantitative approaches, including in-depth interviews and a survey of

302 banking customers. Findings suggest AI's critical role in fraud detection and risk

prevention, while identifying regulatory, privacy, skills, and infrastructure challenges. The

study reveals that attitudes towards AI, perceived usefulness, risk, trust, and subjective norms

significantly influence adoption intention. This work highlights the importance of AI in

enhancing banking operations and customer service but notes the lack of emphasis on the

ease of use and awareness in driving adoption. It contributes to understanding the drivers of

AI adoption in banking, offering insights for policy and strategy development but lacks a

broader geographical and demographic exploration, suggesting areas for further research.

19. Md Mahfuzur Rahman et al.'s (2021) research, "Adoption of Artificial Intelligence

in Banking Services: An Empirical Analysis," examines the adoption of AI in the banking

sector, focusing on the impact of AI technologies like machine learning and deep learning on

banking services. The research covers how AI contributes to the banking industry, enhancing

customer engagement and operational efficiency. It employs a comprehensive methodology,

including both qualitative and quantitative analyses, to delve into the adoption rates, benefits,

and challenges associated with AI in banking. The study highlights the transformative effect

of AI on the banking landscape but also notes the need for future research to address the

emerging trends and challenges in AI adoption within the sector.

20. M. U. Okeke's (2020) investigation, "The Effectiveness of Internal Control

Measure and Accountability in the Management of Public Resources in Nigeria," examines

the impact of internal audit on managing public resources in Nigeria. This study aims to

understand the role of internal audit, identify hindrances to effective public resource
management, and determine the extent to which integrity, ethical values, and compliance

contribute to efficient policy implementation. Using a combination of questionnaires,

personal interviews, and documentation review, the research finds that an effective internal

control system is crucial for detecting misstatements, preventing fund diversion, and ensuring

resource accountability. Recommendations include the establishment of an audit committee

and continuous training for internal auditors to enhance governance and transparency within

public institutions.

21. Luisa Kruse, Nico Wunderlich, and Roman Beck's (2019) work, "Artificial

Intelligence for the Financial Services Industry: What Challenges Organizations to Succeed,"

analyzes the critical drivers and inhibitors to AI adoption within the finance industry. Despite

the high interest and potential for AI to revolutionize the finance sector, actual

implementation remains limited to pilot projects. The study, informed by 22 semi-structured

interviews with finance AI experts, utilizes the Technology-Organization-Environment

(TOE) framework to structure its findings. It highlights the importance of AI-specific role

models and process competencies as pivotal for successful AI adoption, pointing towards a

future where AI operates autonomously, devoid of human intervention and ethical concerns.

22. Xiaolin Zheng et al.'s (2018) study, "FinBrain: When Finance Meets AI 2.0,"

discusses the intersection of AI and finance, emphasizing the transformative impact of AI

technologies on the financial sector. This study articulates the evolution of financial

technology (Fintech) into its current, AI-driven state, highlighting advancements in wealth

management, risk management, financial security, consulting, and blockchain technologies.

The paper outlines the FinBrain framework, proposing a comprehensive approach to

integrating AI in finance, covering data analysis, model development, and practical

applications. It suggests future research directions, including explainable AI, risk

management, and multi-agent systems, to further advance the field. Despite its
comprehensive framework and future outlook, the study's broad scope might limit in-depth

exploration of specific AI applications in finance, presenting an opportunity for further

focused studies.