What is it about?
This study shows how artificial intelligence can help spot possible manipulation in company financial reports in Kenya. By analyzing financial data patterns, AI supports auditors and regulators in improving transparency, trust, and corporate accountability.
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Why is it important?
This study is unique and timely because it applies artificial intelligence to detect creative accounting within the Kenyan corporate context, where such empirical evidence is still limited. Unlike prior studies that rely mainly on traditional accrual-based models, this research demonstrates how AI can uncover complex and hidden patterns of earnings manipulation that conventional methods may miss. By combining AI with established models and explainable AI tools, the study offers a practical and transparent approach suitable for auditors, regulators, and firms in emerging markets. Its findings can directly influence auditing practices, regulatory oversight, and corporate governance reforms, making financial reporting more reliable and strengthening stakeholder confidence.
Perspectives
From my personal perspective, this publication reflects a strong belief that emerging technologies like artificial intelligence can meaningfully improve the credibility of financial reporting in developing economies. Having observed persistent concerns around creative accounting and limited enforcement capacity, I see AI not as a replacement for professional judgment, but as a powerful support tool for auditors and regulators. This work represents my commitment to bridging academic research with practical solutions that can strengthen transparency, accountability, and public trust in corporate reporting in Kenya and similar contexts.
Dr. Charles Guandaru Kamau
Technical University of Mombasa
Read the Original
This page is a summary of: Application of Artificial Intelligence in Detecting Creative Accounting Tendencies Among Corporations in Kenya, African Journal of Commercial Studies, December 2025, Journal of Commercial Studies,
DOI: 10.59413/ajocs/v6.i6.9.
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