The current review aims to provide a theoretical framework for financial accounting and to understand the role of artificial intelligence in financial firms. This review synthesizes a body of empirical and theoretical research published in leading accounting and financial technology journals. The study adopted a theoretical literature review methodology following the PRISMA 2020 protocol, analyzing key empirical and theoretical studies published in English between 2020 and 2026, extracted from databases including Scopus, Clarivate, and Google Scholar. The analysis focused on the impact of AI techniques, such as machine learning and robotic process automation (RPA), neural networks, large language models, and blockchain, on financial accounting and auditing functions. The review concludes that AI is driving a paradigm shift in financial accounting; however, it remains an enhancing tool rather than a substitute for human judgment. The research recommends updating educational curricula and issuing regulatory and ethical frameworks, and adopting a hybrid methodology that integrates automation with human oversight to ensure responsible and sustainable use of AI.