You can download the solution to the following question for free. For further assistance in accounting assignments please check our offerings in Accounting assignment solutions. Our subject-matter-experts provide online assignment help to Accounting students from across the world and deliver plagiarism free solution with free Turnitin report with every solution.
(ExpertAssignmentHelp do not recommend anyone to use this sample as their own work.)
Discuss the initiatives by the accounting profession and in particular the Big 4 accounting firms to respond to the impact of Robotics and the Internet of Things (IoT).” Please support your arguments with empirical evidence wherever possible.
The accounting profession and the industry are experiencing a myriad of changes at an astonishing pace with the evolution of the Internet of Things (IoT) and robotics (Wyner 2015). The fundamental ideas behind these technology implementations in accounting are robustness and connectedness of the business processes. The impact is twofold through the data insights which drive the profitability of clients as well as the practices. The key driver that is increasing the interests of the accounting firm to leverage technology is the enhanced productivity and the reduction in labour expenses. Another concern is the ease of fraud detection and progress in audit quality.
With the emergence of globalisation, complexities in business operations have increased with the international trade and regulations, tax laws and compliance mechanisms. This has a direct implication on accountants to utilise technology to assist in accessing trade data and support their practices (Cokins 2017). The implementation of robotic solutions is expected to influence processes such as invoice preparation, general ledger maintenance, auditing, managing period closings and outsourced processes.
This essay discusses the initiatives undertaken by IFAC, accounting professional bodies and big four accounting firms (Ernst & Young, KPMG, PwC and Deloitte) in terms of professional standards, training programs for accountants and client communication about the developments in accounting IoT and robotics.
This section discusses how IoT and robotics are influencing the accounting profession and its implications. Further, the measures undertaken by professional bodies and the top four accounting firms are outlined.
IoT and Its Implications on the Accounting Profession
IoT is believed to capture data across the accounting firm, thereby redefining the role of an accountant to be a monitor of the accurate configuration of the system. In collaboration with Artificial Intelligence (AI) this would further enhance as rule-based tasks are transitioned to a machine. The professionals have to utilise their analytical and problem-solving skills to manage complex data generated through IoT. The opportunities generated include the chance to enhance market knowledge, planning and risk mitigation, being effective, reduction in process costs and the transformation of auditing and accounting processes (McLean 2017). The challenges faces include the lack of skills pertaining to data mining and data interpretation, assessment and processing skills to obtain suitable data, data security, privacy compliance and technology-related regulatory norms. Such a scenario requires the accounting professionals to use their analytical and critical thinking skills to generate a wider scope for positive strategic implications, exploration of data management measures and auditing, data analytics and investigation of new approaches to evaluate cost and returns (Chua 2013).