Rethinking financial reporting in the digital era: A review of emerging issues and challenges
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The financial reporting environment is experiencing a profound transformation driven by digitalization, cloud computing, artificial intelligence (AI), blockchain technologies, environmental, social, and governance (ESG) integration, and growing cybersecurity threats. The objective of this study is to review and synthesize recent academic literature to identify emergent issues and challenges influencing contemporary financial reporting practices. This study adopts a thematic literature review approach, drawing on peer-reviewed research from accounting, finance, governance, and information systems disciplines. The scope of the review focuses on digital reporting infrastructures, AI-enabled analytics, sustainability disclosures, and technology-related governance risks. The findings indicate that digital and cloud-based reporting systems improve efficiency, accessibility, and data integration, but simultaneously increase dependence on third-party providers and algorithmic processes, raising concerns related to cybersecurity, concentration risk, and regulatory compliance. AI adoption enhances predictive accuracy and reporting quality but introduces ethical, disclosure, and accountability challenges. ESG reporting strengthens corporate accountability; however, inconsistent standards and measurement frameworks continue to limit comparability. Blockchain and FinTech innovations offer transparency and inclusion benefits but face scalability and governance constraints. Overall, the review demonstrates that financial reporting is at a critical juncture where technological innovation must be balanced with ethical governance, regulatory coordination, and professional judgment to sustain transparency, comparability, and stakeholder trust.