IMPACT OF TECHNOLOGY CHANGES IN ACCOUNTING PROFESSION

 IMPACT OF TECHNOLOGY CHANGES IN ACCOUNTING PROFESSION   

CHAPTER 1: Introduction: IMPACT OF TECHNOLOGY CHANGES IN ACCOUNTING PROFESSION

 Accounting is the act of collecting, organizing. and interpreting financial data. The first financial statement is the income statement, which tells how much money was made or lost in a given time period. Next is the statement of retained earnings, which tells how much money that was made was reinvested into the company. The third statement is the balance sheet. The balance sheet is the financial statement that lists all the assets, liabilities, and owner's equity of the company. It's important to note here that the accounting equation is also known as the balance sheet equation. The last financial statement is the statement of cash flows, which tells how much money came in and was paid out in a specific time period.'(project topics   final year project topics )

Accounting or accountancy is the measurement, processing and communication of financial information about economic entities such as businesses and corporations. The modern field was established by the Italian mathematician Luca Pacioli in 1494. Accounting, which has been called the "language of business" ,measures the results of an organization's economic activities and conveys this information to a variety of users, including investors, creditors, management, and regulators. Practitioners of accounting are known as accountants. The terms "accounting" and "financial reporting" are often used as synonyms.

Accounting can be divided into several fields including financial accounting, management accounting, external auditing, and tax accounting. Accounting information systems are designed to support accounting functions and related activities. Financial accounting focuses on the reporting of an organization's financial information, including the preparation of financial statements, to external users of the information, such as investors, regulators and suppliers; and management accounting focuses on the measurement, analysis and reporting of information for internal use by management. The recording of financial transactions, so that summaries of the financials may be presented in financial reports, is known as bookkeeping, of which double-entry bookkeeping is the most common system.

Accounting is facilitated by accounting organizations such as standard-setters, accounting firms and professional bodies. Financial statements are usually audited by accounting firms, and are prepared in accordance with generally accepted accounting principles (GAAP). GAAP is set by various standard-setting organizations such as the Financial Accounting Standards Board (FASB) in the United Statesand the Financial Reporting Council in the United Kingdom. As of 2012, "all major economies" have plans to converge towards or adopt the International Financial Reporting Standards (IFRS).

  Technology is an asset to all businesses because of the enhanced communications skills it has provided. Technology has provided many tools that increase efficiency in any business, including accounting. Examples of these technological tools include computer-integrated manufacturing, image processing, the Internet, and expert systems (Journal of Accountancy, 1996). This enhanced efficiency within businesses allows accounting information to become dynamic, reflecting the current state (Journal of Accountancy, 1994b). This helps to fulfill management accountants’ objective of providing the most accurate and timely information.

Unfortunately, a technological asset to a business may result in a liability for the business’s accountant. The more timely and accurate information that is provided by the technological tools often costs the business accountability and confidentiality. There are many more opportunities for fraudulent activities due to the purely electronic audit trail accountants are often forced to deal with. These audit trails do not allow the accountant to trace many transactions to their origin. Internet transactions, as well as other methods, lead to confidentiality issues. Accountants’ dependency on computers has proven to be a disadvantage with the Year 2000 Problem. These are just some of the negative impacts that technology has had for today’s accountant.

Overall, technology has caused change in the accounting profession. Hiring trends, education needs, and the rise of the consulting side of accounting are just some of the impacts that technology has had on the accounting profession. These cannot necessarily be labeled as benefits or disadvantages. It is clear, however, that these impacts, as well as the advantages and disadvantages, are forcing a change in the accounting profession. In response, the accounting profession needs to conform to these changes, or the profession could be replaced by a rising generation of competitors. As one author for the Journal of Accountancy says, it is clear that the accounting profession ‘needs to upgrade its practices and skills to reflect where the world is going, not where it has been’ (Journal of Accountancy, 1994b).

1.1  Background of the Study: IMPACT OF TECHNOLOGY CHANGES IN ACCOUNTING PROFESSION

Thirty years ago, most financial accounting was done manually, leading to a great deal of paperwork. Currently, most accounting information is recorded via computers and wide area networks (The new finance. Journal of Accountancy. August (1994b) 73–76.Journal of Accountancy, 1994a). Technology has certainly changed the face of accounting over the years. While it is unclear whether technology’s impact on accounting has been positive or negative, it is clear that technology has drastically changed the accounting profession. Often a technological advance may be an asset to a business, but a liability to the firm’s accountant. For example, information can be provided in a timely and more accurate manner, but at the price of confidentiality. Some of the impacts of technology are neither positive nor negative; they are simply changes. So in essence, the impacts of technology on accounting have been positive, negative, and neutral, but each impact results in a demand on the profession to conform to the changes. The obvious advantage of technology is in the various tools that it has provided. Examples of these tools include computer-integrated manufacturing, communications technology, image processing, the Internet, and expert systems. These are a few examples of the many tools of technology whose purpose is to provide more detailed and accurate information in a timely manner. The research therefore seek to investigate the impact of Technology changes on the accounting profession.

1.2  Statement of the Problem

The accounting profession has definitely been influenced by the recent bombardment of technology within the industry. Some ‘business thinkers’ believe the accounting profession should be entirely revamped. It is true that some technological changes have made many of the current accounting practices no longer relevant. An example is the ledger account (Journal, 1994b). Previously, this account was very important as a historical record of transactions and was used to expedite the preparation of financial statements (Knapp, 1996, p. 82). With today’s timely information, the ledger account becomes less important. Computers have taken over as the record keeper for this type of information. According to a contributor to the Journal of Accountancy: ‘if the accounting profession doesn’t reinvent itself, it easily could … be replaced by a profession that has yet to emerge with an entirely different vision of how information, analysis and attest services should be provided’ Therefore the problem confronting this research is to determine the impact of technology changes on the accounting profession

1.3  Objective of the Study: IMPACT OF TECHNOLOGY CHANGES IN ACCOUNTING PROFESSION

1 To determine the nature of Technology changes

2 To determine the nature of the accounting profession

3 To determine the impact of Technology changes on the accounting profession

1.4  Research Questions

1 What is the nature of the accounting profession?

2 What is the nature of Technology changes in the Accounting Profession?

3 What is the nature of the impact of Technology changes in accounting profession?

1.5  Significance of the Study: IMPACT OF TECHNOLOGY CHANGES IN ACCOUNTING PROFESSION

The study proffers the new face of the accounting profession so as nurture and builds new entrants in the Accounting profession according to quality and new standard set by the profession in the face of global technology changes

1.6  Statement of Hypothesis

1 Ho The quality and standard of the Accounting Profession is low

   Hi The quality and standard of the Accounting Profession is high

2 Ho The level of Technology changes is low

    Hi The level of Technology changes is high

3 Ho The impact of Technology changes in the Accounting Profession is low

   Hi   The impact of Technology changes in the Accounting Profession is high

1.7        Scope  of the Study: IMPACT OF TECHNOLOGY CHANGES IN ACCOUNTING PROFESSION

The study focuses on the appraisal of the impact of technology changes in the Accounting Profession

1.8       Definition of Terms

Basic accounting equation: assets = liabilities + owner's equity.'

‘Assets are items that are owned, have value, and can be turned into cash. Bank accounts, CDs, cars, property, and machinery are all examples of assets.

Liabilities are what is owed. A loan to purchase an asset is a liability.

 Owner's equity is the amount of money that a person has invested into an organization. The investment may be in the form of a stock purchase or a capital investment made by buying into a company. The most important thing to remember is that both sides of the accounting equation must be equal. If they don't balance, then there is a problem.'

Financial accounting

Financial accounting focuses on the reporting of an organization's financial information to external users of the information, such as investors, regulators and suppliers. It calculates and records business transactions and prepares financial statements for the external users in accordance with generally accepted accounting principles (GAAP). GAAP, in turn, arises from the wide agreement between accounting theory and practice, and change over time to meet the needs of decision-makers.

Financial accounting produces past-oriented reports—for example the financial statements prepared in 2006 reports on performance in 2005—on an annual or quarterly basis, generally about the organization as a whole.

This branch of accounting is also studied as part of the board exams for qualifying as an actuary. It is interesting to note that these two professionals, accountants and actuaries, have created a culture of being archrivals.

Management accounting

Management accounting focuses on the measurement, analysis and reporting of information that can help managers in making decisions to fulfil the goals of an organization. In management accounting, internal measures and reports are based on cost-benefit analysis, and are not required to follow the generally accepted accounting principle (GAAP). In 2014 CIMA created the Global Management Accounting Principles (GMAPs). The result of research from across 20 countries in five continents, the principles aim to guide best practice in the discipline.

Management accounting produces future-oriented reports—for example the budget for 2006 is prepared in 2005—and the time span of reports varies widely. Such reports may include both financial and non-financial information, and may, for example, focus on specific products and departments.

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How To Write Chapter Three Of Your Research Project (Research Methodology)

  • Methodology In Research Paper


    Chapter three of the research project or the research methodology is another significant part of the research project writing. In developing the chapter three of the research project, you state the purpose of research, research method you wish to adopt, the instruments to be used, where you will collect your data, types of data collection, and how you collected it.

    This chapter explains the different methods to be used in the research project. Here you mention the procedures and strategies you will employ in the study such as research design, study design in research, research area (area of the study), the population of the study, etc. You also tell the reader your research design methods, why you chose a particular method, method of analysis, how you planned to analyze your data.

    Your methodology should be written in a simple language such that other researchers can follow the method and arrive at the same conclusion or findings.

    You can choose a survey design when you want to survey a particular location or behavior by administering instruments such as structured questionnaires, interviews, or experimental; if you intend manipulating some variables.

    The purpose of chapter three (research methodology) is to give an experienced investigator enough information to replicate the study. Some supervisors do not understand this and require students to write what is in effect, a textbook.

    A research design is used to structure the research and to show how all of the major parts of the research project, including the sample, measures, and methods of assignment, work together to address the central research questions in the study. The chapter three should begin with a paragraph reiterating the purpose of research. It is very important that before choosing design methods try and ask yourself the following questions: Will I generate enough information that will help me to solve the research problem by adopting this method?

    Method vs Methodology

    I think the most appropriate in methods versus methodology is to think in terms of their inter-connectedness and relationship between both. You should not beging thinking so much about research methods without thinking of developing a research methodology.

    Metodologia or methodology is the consideration of your research objectives and the most effective method and approach to meet those objectives. That is to say that methodology in research paper is the first step in planning a research project work.

    Design Methodology: Methodological Approach

    Example of methodology in research paper, you are attempting to identify the influence of personality on a road accident, you may wish to look at different personality types, you may also look at accident records from the FRSC, you may also wish to look at the personality of drivers that are accident victims, once you adopt this method, you are already doing a survey, and that becomes your metodologia or methodology.

    Your methodology should aim to provide you with the information to allow you to come to some conclusions about the personalities that are susceptible to a road accident or those personality types that are likely to have a road accident.

    The following subjects may or may not be in the order required by a particular institution of higher education, but all of the subjects constitute a defensible in metodologia or methodology chapter.

    Click here to complete this article - How To Write Chapter Three Of Your Research Project (Research Methodology)

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