DIGITAL DISRUPTION OF ACCOUNTING INFORMATION AND FINANCIAL REPORTING QUALITY OF LISTED DEPOSIT MONEY BANK IN NIGERIA

Abstract

The integration of AI into accounting systems, despite advancing digital transformation, creates a critical problem of limited transparency and interpretability which undermines trust and may compromise faithful financial reporting when automated outputs are not fully understood or validated by professionals. This study addresses a critical gap in the literature by empirically investigating the specific impact of digital disruption of accounting information within the unique administrative context deposit money bank in Nigeria of focusing on two dimensions: faithful representation of financial reporting, relevance of financial statement. The study employed a survey research design targeting a population of 7484 accountants, internal auditors, finance and financial reporting staff across deposit money bank in Nigeria. A sample size of 380 was determined using yaro yamane sampling technique. Data were collected via structured questionnaires and the instruments reliability was confirmed with Cronbach’s Alpha coefficients ranging from 0.700 to 0.843 indicating excellent internal consistency. Data was analysed using descriptive and multiple regression analysis to test the hypothesized relationships. The results and findings show that digital disruption of accounting information had a positive and significant effect on Faithful Representation of Financial Reporting (FR) (p<0.05) . Digital disruption of accounting information had a positive and significant effect on Relevance of Financial Statement (RF) (p<0.05). From the findings and results, the study concluded that digital disruption of accounting information has a significant effect on Financial Reporting Quality of listed deposit money bank in Nigeria. The study however recommended that Banks should invest in scalable data infrastructure to improve financial reporting accuracy, ensure compliance and support better decision making