Rethinking financial reporting in the digital era: A review of emerging issues and challenges

Abstract

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.

Keywords: {'name': 'Financial Reporting'}, {'name': 'Digital Transformation'}, {'name': 'Cloud Computing'}, {'name': 'Artificial Intelligence'}, {'name': 'ESG'}

Authors & affiliations

Musammat Tahmina Khanom
Leading University

Mohammad Zahed Hussain
Leading University

Deposited references

Supplied references, not a list of publications citing this article.

DOI: 10.3390/joitmc8010038

DOI: 10.56830/IJAMS04202302

DOI: 10.1016/j.ijinfomgt.2020.102199

DOI: 10.14505/tpref.v16.2(34).17

DOI: 10.53771/ijstra.2024.7.2.0061

DOI: 10.32479/irmm.17854

DOI: 10.3390/jrfm18010004

DOI: 10.26458/1941

Boampong, E. (2024). Examining cloud computing security: A look at how risks and threats affect cloud adoption decisions (Order No. 31140212). ProQuest Dissertations & Theses Global. https://www.proquest.com/dissertations-theses/examining-cloud-computing-security-look-at-how/docview/3047806990/se-2

DOI: 10.2478/hjbpa-2025-0008

DOI: 10.3846/jbem.2025.23054

DOI: 10.3390/fi16070244

DOI: 10.1080/23270012.2020.1731721

DOI: 10.3390/jrfm18050245

DOI: 10.37394/23207.2025.22.5

DOI: 10.30574/gjeta.2024.21.2.0213

DOI: 10.15330/jpnu.10.2.45-58

DOI: 10.3390/informatics9010019

DOI: 10.2139/ssrn.4423902

DOI: 10.1016/j.accinf.2022.100598

DOI: 10.54648/EULR2025006

Hsieh, S.-R., Chang, S., & Su-han, C. (2024). FinTech governance challenges and solutions: A critical review and research agenda. Pacific Asia Journal of the Association for Information Systems, 16(3). https://doi.org/10.17705/1pais.16303

DOI: 10.1080/09639284.2022.2057195

DOI: 10.1142/9789811296475_0012

Khanom, M. T. (2023). Business strategies in the age of digital transformation. Journal of Business, 8(1), 28–35. https://doi.org/10.18533/job.v8i01.296

DOI: 10.9734/acri/2024/v24i6811

DOI: 10.26668/businessreview/2023.v8i9.3771

DOI: 10.1145/2963175.2963179

DOI: 10.2308/isys-52626

DOI: 10.1108/PAR-06-2021-0105

DOI: 10.2478/sbe-2025-0006

DOI: 10.1016/j.accinf.2021.100513

DOI: 10.3390/jrfm18050250

DOI: 10.1016/j.techfore.2019.119751

DOI: 10.35631/AIJBES.621006

DOI: 10.15240/tul/001/2024-1-008

Panguluri, N. R. (2024). Cloud computing and its impact on the security of financial systems. Computer Science and Engineering, 14(6), 121–128. https://doi.org/10.5923/j.computer.20241406.01

DOI: 10.32996/jefas.2025.7.2.5

DOI: 10.3390/electronics13142684

DOI: 10.31341/jios.44.1.6

DOI: 10.1108/JAOC-01-2024-0028

DOI: 10.1109/ICITCOM62788.2024.10762375

DOI: 10.2308/isys-51494

DOI: 10.52783/jisem.v10i2s.332

Sheikh, F. (2024). Challenging accounting fraud and the corporate psychopath accountant through blockchain technology (Order No. 31868981). ProQuest Dissertations & Theses Global. (3171100639). https://www.proquest.com/dissertations-theses/challenging-accounting-fraud-corporate-psychopath/docview/3171100639/se-2

DOI: 10.30574/gjeta.2024.18.2.0027

DOI: 10.2478/picbe-2021-0070

DOI: 10.1080/01559982.2020.1783047

DOI: 10.69554/LOVN3543