Accounting Automation and Financial Reporting Quality in Nigeria
TL;DR
The positive impact of automation on audit independence, particularly program, investigative, and reporting independence, as well as the enhanced accuracy, efficiency, and transparency associated with digital accounting platforms are highlighted.
Abstract
Purpose: This opinion paper critically examined the relationship between accounting automation and financial reporting quality in Nigeria, emphasizing the evolving dynamics introduced by digital technologies in the accounting profession. Design/methodology/approach: Drawing from a rich array of empirical studies, institutional reports, and theoretical insights, the paper explored how Automated Accounting Systems (AAS) such as the Integrated Payroll and Personnel Information System (IPPIS), Treasury Single Account (TSA), and Government Integrated Financial Management Information System (GIFMIS) have transformed financial reporting in both public and private sectors. Findings: It highlighted the positive impact of automation on audit independence, particularly program, investigative, and reporting independence, as well as the enhanced accuracy, efficiency, and transparency associated with digital accounting platforms. Limitations and Research implications: The paper acknowledged critical concerns such as job displacement, increased risks of cyber fraud, and the widening skills gap among accounting professionals, suggesting the need for continuous system improvement and human capacity development. Practical Implications: Automation must not compromise auditor independence or public trust in financial reports. Ethical safeguards, training, and technological upgrades are essential for sustainable financial reporting quality. Originality/value: Grounded in the Technology Acceptance Model (TAM) and Agency Theory, this paper contributes to scholarly and policy debates on digital transformation in accounting and its implications for accountability, transparency, and sustainable development.