The role of artificial intelligence regulations in enhancing the quality of financial reports using accountant skills as a mediating factor

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Abstract

This study aimed to explore how the artificial intelligence (AI) contributes improving the quality of financial reports in Jordanian industrial firms, where accountants’ skills act as a mediator factor. The study used the descriptive analytical approach, quantitative and statistical analysis to achieve its objectives and assess its hypotheses. A structured questionnaire was developed, covering three main areas of AI — machine learning, expert systems, and the Internet of Things (IoT) — along with the quality of financial reports and accountants’ skills. The questionnaire was distributed to 390 employees working in industrial companies in Jordan. The tool’s reliability and validity were confirmed. The results showed that the quality of financial reporting was improved by AI in a statistically significant way. Among AI’s areas, the IoT showed the strongest effect, followed by machine learning, while expert systems had a relatively weaker effect. Accountants’ skills were found to serve as a partial mediator in this relationship, as AI directly improves the quality of financial reports and indirectly enhances them through developing the technical and analytical competencies of accountants. The study concluded that integrating AI technologies into financial reporting processes is essential to improve financial accuracy, reduce fraud, and ensure compliance with regulatory standards.

Keywords: Artificial Intelligence, Financial Reporting, Machine Learning, Internet of Things, Accountants’ Skills, Jordanian Industrial Companies

Authors’ individual contribution: Conceptualization — A.A.; Methodology — N.S.M.T.; Software — M.K.; Formal Analysis — A.E.H.; Investigation — A.A.; Resources — A.A.; Writing — Original Draft — A.A.; Writing — Review & Editing — A.A.; Visualization — A.E.H.; Supervision — A.A.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: L600, M15, M41, O31

Received: 26.02.2025
Revised: 07.05.2025; 28.05.2025; 01.10.2025
Accepted: 23.10.2025
Published online: 27.10.2025

How to cite this paper: Alassuli, A., Thuneibat, N. S. M., Khtatbeh, M., & Haddad, A. E. (2025). The role of artificial intelligence regulations in enhancing the quality of financial reports using accountant skills as a mediating factor. Journal of Governance & Regulation, 14(4), 176–188. https://doi.org/10.22495/jgrv14i4art17