Algorithmic Accountability and Corporate Governance: A Cross-Cultural Analysis of Digital Democracy and the Rule of Law in Accounting Information Systems

Abstract

In the rapidly evolving landscape of modern finance, the integration of algorithmic tools into accounting practices represents a significant shift toward digital democracy, characterized by increased transparency and stakeholder engagement. This paper presents a systematic literature review of 25 studies to explore how corporate governance and the rule of law influence the quality of accounting information across different cultural settings. By employing the Gioia methodology for thematic analysis, the research identifies critical linkages between digital transformation, internal control mechanisms, and financial reporting standards. The findings indicate that while technology serves as a powerful enabler of transparency, its potential is fully realized only when supported by strong governance frameworks and strict regulatory compliance. Consequently, the study highlights the imperative for organizations to harmonize digital innovations with robust ethical standards to combat creative accounting and fraud, providing a roadmap for future governance practices in a globalized economy.