Emerging technology and infrastructure changes in relation to accounting and auditing ‑ transformation, innovation, disruption
Accounting has always been transformed by emerging technologies, which have helped in accurate and quick completion of tasks, and in enhancing auditing function through the evaluation process. The past technologies and infrastructures were simple propositions when compared to the various developments that are currently shaping the accountancy field and business worlds. The various emerging technologies have been driven by the increased need for security, risk management and infrastructure management which are informed by privacy issues and Cybersecurity. These emerging developments continue shaping the accountancy films given the cases of data breaches and increasing concern by management about the need for efficiency, data security and privacy.
In the 21st century, changes in technology are changing the accounting field through big, data, cloud, social collaboration and mobile collaborations which are changing they ways in which information technology resources are being consumed , experience and knowledge are being shared and in accessing various products and services . Accountants and auditors are a major part of the present connected world will continue being an important part of any technological changes taking place globally. This fact is changing how communication and collaboration between accountants and auditors and the business world are working together and transforming the working patterns (Zhang, et. al 2012). These professionals are being provided with an opportunity to automate repetitive or time-consuming functions and focus on work that is of higher value. This consolidates their roles as advisers in business and finance. Since it is hard to foresee the future with any level of surety, the accounts and editors are increasingly acknowledging the need to keep informed about any evolution in technologies and infrastructure since they have big impact in the accountancy field. They will have to consider new technologies and then, access the kind of impact they have in finance profession, those being served and supported. This way accountants and auditors will be ready to maximize resulting benefits while minimizing any related burden (Zhang, et. al 2012). The profession will be able to exploit and embrace the emerging technology and transform the scope of the accounting field.
The connectivity of broadband mobile to the internet has been spreading while the scope of Information Technology resources like software is expanding while tablets and smartphones are seamlessly being integrated. These devices are becoming indispensible while carrying out various functions in the workplace especially in relation to accessing and sharing information. The communication process is also being enhanced by these devices and thereby enabling communication and breaking barriers in the workplace (ACCA, 2013). Accountants and auditors are using the devices in delivering efficiency and productivity gains while bringing business closer to clients through connectivity. Businesses are coming up with their own software applications so as to create publicity and attracting new client and improving services to their customers. The people entering the profession are being integrated in their workforce while mobility is offering firms with a tool or attracting customers and even talent. The accounting and auditing profession have to understand which services can be delivered best using such a move and any security concern in relation to loss of valuable information. They will have to implement the appropriate mobile technology at the right moment. This also means that working patterns will keep changing as the use of internet is being embraced more in the profession. As mobile technology is being identified as an important infrastructure in the coming years, accountants and auditors will need to embrace related actions. This include identifying and implementing effective and appropriate mobile solutions that can relate with changes in years ahead and managing the necessary transition to complete mobility in a safe and consistent way (Carcello, Hermanson, & Ye, 2011). They will also have to take into consideration the benefits offered through internet interconnections with mobile devices and other appliances or equipments in any given industry.
Digital services are causing transformation in businesses practices, government institutions and various third sector firms by using emerging technologies and IT architectures in delivering processes that are web-based, e-commerce and even cloud-based services and software. These involve both intranets and internets. Digital services comprises of major features like self-assessment solutions and utilize technologies like bots for handling enquiries and support requests and allows communication using social media platforms(ACCA, 2013). The digital services are being adopted by accountants to access resources and provide services. The accountancy and related practices are providing self-services features like online data-vaults which can be used by clients in accessing management and statutory reports. Auditors are therefore using digital services to provide their reports on financial assessments and evaluations. In fact services such as shopping, booking tickets and banking are being made efficient for clients and while reducing cost for providers. These services provide data to accountants and auditors in way that they can be accessed easily. In fact, regulatory services provisions are being done more digitally, while exploiting tools such as eXtensible Business Reporting Language to automate and streamline process by government institutions and authorities(ACCA, 2013). Accountants and auditors will be required to acquire new skills in order to exploit the various opportunities provided by these technological transformations. Such opportunities include the potential to achieve efficiency and hence customer satisfaction, automation of accounting and auditing models and minimizing public service delivery costs and compliance costs. As digital services become the norms in business practices especially in major situations, accountants will have to embrace the requirements that are associated. This involves recruiting accountants and auditors with the necessary digital skills or developing them and using effective tactics and strategies to offer competitive advantage. The accountancy profession will in future be required to consider the impacts of the digital services on business, regulators and advisers as they become more connected and automatic data exchange becomes the norm (Carcello, Hermanson, & Ye, 2011).
The growing adoption of mobile devices , social media and even cloud computing has brought about great security ,threat of security breaches and customer data misuse which has the potential to completely destroy company’s reputation . Internal auditing is increasingly being sort to help in management of the risks presented by such technologies. Many internal audit heads and senior executives are becoming aware of the major risks to data privacy and security presented by changing technologies and related accounting infrastructures (Carcello, Hermanson, & Ye, 2011). Organizations are seeing the need to emphasize the value of data, where the data is stored and the possible financial impact if such information was lost or stolen. As firms move online, information may be inside the systems, on devices owned by employees or those managed by providers of information technology services. There have been many cases of high-profile attacks on both small and large firms where the information is accessed by online hackers and criminals (Zhang, et. al 2012). The aim has been to access or remove sensitive information relating to intellectual property, customer data and financial data. Organizations are being forced to consider the existing control functions and whether they can segregate and secure important information so that it can be accessed by only those who need it. The internal audit departments are particularly concern with the existence of internal controls that can be adjusted for counter measure purpose. This also includes the availability of available plans for responding to any loss damaging or sensitive information (Zhang, et. al 2012). Accountants and auditors will have to adopt strategies that will make sure that organizations are on the right track with new risks management.
Presently it seems clear that emerging technology has brought about various changes in accounting and auditing infrastructure. These changes will continue having ka myriad of impacts on the accountancy as a profession and in practice. Different technologies are working together in creation of a new norm in the business environment and this means that accountants and auditors have to embrace the resultant benefits and deal with new risks. They will have to play a significant role in an ecosystem that is more and more connected and interconnected. Customers will have access to their business or accounting information due to prevalence of seamless devices, smartphones and even the internet. In future, with more changes expected in form of technologies, accountants and auditors will have to gain more skill to remain relevance in new roles as custodians of corporate information and data. The profession should develop new ways of valuing and measuring technological benefits and costs.
References
Carcello, J. V., Hermanson, D. R., & Ye, Z. (2011). Corporate governance research in accounting and auditing: Insights, practice implications, and future research directions. Auditing: A Journal of Practice & Theory, 30(3), 1-31.
Zhang, L., Pawlicki, A. R., McQuilken, D., & Titera, W. R. (2012). The AICPA assurance services executive committee emerging assurance technologies task force: The audit data standards (ADS) initiative. Journal of Information Systems, 26(1), 199-205.
ACCA, (2013).Technology trends: their impact on the global accountancy profession. Retrieved from: http://www.accaglobal.com/content/dam/acca/global/PDF-technical/futures/pol-af-ttti.pdf
