Abstract: This examines the usage of artificial intelligence (AI) in enhancing audit quality and lowering income management inside Saudi-listed corporations from 2015 to 2024. The study uses 680 corporation-accounting period observations sourced from the Bloomberg and DataStream databases, employing correlational and panel regression analyses (OLS and FGLS) to analyze the relationships amongst AI adoption, audit quality, and earnings management, with employer traits functioning as independent variables. The empirical findings display a strong negative correlation between AI use and profit control, suggesting that advanced incorporation of AI in auditing diminishes discretionary accruals and improves financial transparency. Audit is wonderful; moreover has a large, terrible impact on income manipulation, which shows that it plays a role within the interplay between AI and income manipulation. Control variables like the length and leverage of an employer have a significant impact on income management, while profitability has a negative effect. In particular, the outcomes show that AI-pushed audit techniques make governance more potent, make it less complicated to find out issues, and inspire moral reporting. The studies offer to the frame of expertise via imparting empirical statistics from a developing market, providing realistic guidance for regulators, audit agencies, and policymakers aiming to make use of AI to enhance audit effectiveness and company accountability in accordance with Saudi Vision 2030.

Keywords: Artificial Intelligence (AI), Audit Quality, Earnings Management, Financial Reporting Transparency, Corporate Governance, Digital Transformation, Auditing Technologies

Pages: 863-876