Volume 13 - Issue 74
/ February 2024
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http:// www.amazoniainvestiga.info ISSN 2322- 6307
DOI: https://doi.org/10.34069/AI/2024.74.02.27
How to Cite:
Yarmoliuk, O., Abramov, A., Mulyk, T., Smirnova, N., & Ponomarova, N. (2024). Digital technologies in accounting and reporting:
benefits, limitations, and possible risks. Amazonia Investiga, 13(74), 323-333. https://doi.org/10.34069/AI/2024.74.02.27
Digital technologies in accounting and reporting: benefits, limitations,
and possible risks
Las tecnologías digitales en la contabilidad y la elaboración de informes: ventajas, limitaciones y
posibles riesgos
Received: January 5, 2024 Accepted: February 23, 2024
Written by:
Olena Yarmoliuk1
https://orcid.org/0000-0002-0876-457X
Anton Abramov2
https://orcid.org/0000-0001-8514-6217
Tetiana Mulyk3
https://orcid.org/0000-0003-1109-2265
Nadiya Smirnova4
https://orcid.org/0000-0003-0816-9348
Nataliia Ponomarova5
https://orcid.org/0000-0002-4076-246X
Abstract
Digital technologies are the need of the hour in
the accounting field in the current 4th industrial
revolution. Digital transformation positively and
negatively affects all areas of business. The new
technologies are disrupting the accounting field.
Digital transformation is pressuring accounting
practitioners and graduates to learn digital skills
but despite the emergence of new technologies in
the accounting field, it is unfortunate that not
much is known concerning the impact of digital
technologies in the accounting field. This paper
critically examines the contribution of digital
technologies in accounting and reporting
focusing on its advantages, limitations, and
possible risks. A systematic literature review
methodology, inductive approach and thematic
analysis was adopted. Despite the limitations of
digital technologies in accounting like poor data
governance systems, cyber-attacks, and
1
PhD in Economics, Associate Professor, Department of Accounting, Taxation and Audit, Faculty of Information Technologies, Accounting
and Finance, Polissia National University, Zhytomyr, Ukraine. WoS Researcher ID: ABG-5343-2021
2
PhD in Military Science, Department of Economics and Financial Support, Institute of Logistics and Troop (Forces) Support,
National Defense University of Ukraine, Kyiv, Ukraine. WoS Researcher ID: KFQ-5848-2024
3
PhD in Economics, Associate Professor, Department of Analysis and Audit, Faculty of Accounting, Finance, and Audit, Vinnytsia
National Agrarian University, Vinnytsia, Ukraine. WoS Researcher ID: L-5677-2018
4
PhD in Economics, Associate Professor, Department of Audit, Accounting and Taxation, Central Ukrainian National Technical
University, Kropyvnytskyi, Ukraine. WoS Researcher ID: JCN-9618-2023
5
PhD in Economics, Assistant Professor, Department of Accounting, Audit and Taxation, Faculty of Economics and Management,
Khmelnytskyi National University, Khmelnytskyi, Ukraine. WoS Researcher ID: KAL-9446-2024
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infringement of privacy, it emerged that digital
technologies play a significant role in the
provision of real-time accounting data and
information, automation of routine accounting
activities, visualization of accounting
information, augmenting big data analysis, and
eliminating errors as well as improving
efficiency in accounting. Digital technologies
are transforming the accounting arena by
boosting efficiency and effectiveness. We
recommend accounting professionals,
practitioners and policy makers should invest in
new digital technologies.
Keywords: Accounting practices, digital
technologies advantages, limitations, risks.
Introduction
Modern digital technologies like Artificial
Intelligence (AI) and Industry 4.0 have
revolutionilised the accounting and auditing
profession tremendously (Munoko et al., 2020;
Al-Sayyed et al., 2021; Han et al., 2023;) as
confirmed by surmountable antecedent literature
evidence (Lasi et al., 2014; Tjahjono et al., 2017;
Loureiro et al., 2021; Jamwal et al., 2021; Polak,
2021; Enholm et al., 2022). In the current 4th
industrial revolution, digitalisation of the
accounting process, like what social capital is to
institutional change (Hrytsaienko et al., 2022), is
the trending topic that demands that accounting
professionals acquire digital skills and
knowledge. Digitalisation has transformed all the
elements of the value chain and accounting is not
an exception (Odat et al., 2023; Ramayani et al.,
2023). Despite the acknowledged benefits of
digitalization in accounting, from the antecedent
literature point of view, there remains a
significant gap in understanding its holistic
impact on accounting accuracy, efficiency, and
the role and relevancy of accountants in a
digitized environment. Also, there still exist a
void in extant literature particularly on providing
a compressive environmental scanning of
strengths, weaknesses, opportunities, and threats
(SWOT) analysis of digital technologies in the
accounting field using systematic literature
review approach. As we are living in an
interconnected world dominated by artificial
intelligence, robots, deep learning, and machine
learning, it is no surprise that these technologies
are automating the accounting processes of both
small and big companies around the world
(Sanakuiev, 2022). It is within this context that
advanced technologies are forcing accounting
professionals to move away from manual routine
tasks to automated processes (Kumala et al.,
2021; Odat et al., 2023). Digital technologies like
macroeconomics variables (Gunanto, 2023) have
a potential of increasing profitability of
accounting firms and their clients.
The paper-based accounting has been associated
with myriad of challenges and limitations such as
errors. In modern accounting, it is deemed
necessary for organizations to digitalise their
accounting process so as to speed up the
dissemination of accounting information in an
organization. Digitisation of accounting
profession perform wonder similar to what post-
socialist transformation did to the EU and Polish
economy (Ladonko et al., 2022). This study
specifically focuses on the adoption of AI, robots
and machine learning in automating accounting
tasks and its consequent effect on the
productivity, efficiency and accuracy of financial
reporting. In light of the above, it is necessary to
automate routine accounting activities whereby
the invoices are digitalized. Like what AI does to
does to study and research tasks (Sanakuiev,
2022), with the adoption of automated
accounting workflows, there is assurance of
better accounting record management
(Yigitbasioglu et al., 2023). Accounting field has
undergone tremendous changes over a period of
time. Starting from a pre-computer epoch to a
period of modern accounting which is anchored
on tech-savvy society. Gone are the days in
which bookkeepers depended on manual
accounting. In this modern era, digitalized
accounting eliminates human errors and then
boosts productivity (Ratmono et al., 2023). By
definition, accounting is the process of
collecting, analyzing, interpreting, and reporting
financial-related information. With the adoption
of artificial intelligence, accountants are
changing the way they analyze data and make
evidence-based decisions.
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With increasing competition, globalization, and
technological development, the accounting
profession is changing drastically (Hilali et al.,
2020; Ratmono et al., 2023). Similar to what
neuromarketing does to brand engagement and
marketing profession (Hurzhyi et al., 2023), for
accountancy professions, there is a big risk of
automation which can lead to high
unemployment for accountants as compared to
other professions. However, the auditors' work
has not been tremendously affected by the
emerging digital technology, but the
technologies only affected how they
communicate and document accounting
information (Kumala et al., 2021; Saad et al.,
2022). It is with this context that auditors’
efficiency has significantly improved due to their
anti-crisis management and abilities to offer
solution and prospect to morden organisational
challenges in real time (Rybalchenko et al., 2022;
Hurzhyi et al., 2023; Sembiyeva et al., 2023).
These highlights related to the accounting
profession concurs with evidence that adoption
of digital technologies like what mortgage
lending does to the construction industry
(Abdullayeva & Ataeva, 2022), is a double-
edged sword (Gutsalenko et al., 2018;
Vdovichena et al., 2022; Otonne et al., 2023).
Confirming evidence from the medical field
(Sofilkanych et al., 2023), despite the emergence
of new technologies in the accounting field, it is
unfortunate that not much is known concerning
the impact of digital technologies in the
accounting field. Furthermore, studies that
applied the SWOT analysis to assess the role of
digital technologies in revolutionising the
accounting profession using systematic literature
review approach are sparse. Therefore, this paper
is an attempt to critically examine the
contribution of digital technologies in accounting
and reporting with a special focus on its
advantages, limitations, and possible risks using
environmental scanning lenses (SWOT
analysis). Thus, tthe aim of this research is to
critically analyze the impact of digitalization,
particularly AI and Industry 4.0 technologies, on
the efficiency, accuracy, and roles within the
accounting profession.
In light of the main research aim, the specific
research question that the study seeks to answer
are:
1. What are the implications of digital
technologies on the accuracy of financial
reporting?
2. How does digitalization affect the role and
skills requirements of accounting
professionals?
The paper starts firstly provides a comprehensive
literature review overview to the highlighted
study gap with the aim of answering the specific
study questions. Secondly, the research
methodology used to achieve the research
objectives will be provided, third, the findings on
the advantages, weaknesses, and limitation of
digitation on the accounting profession will be
reported and analysed. lastly, conclusion and
policy implication arising from the study will be
proffered.
Theoretical framework or literature review
This study is informed by the Technology
Acceptance Model. This model was developed
by Davis et al. (1989). This model was
anchored on the need for the application of
technology in the 1980s by the Massachusetts
Institute of Technology and BM Canada. This
model is used as the theoretical lens with which
to assess the acceptance of new technologies as
proposed by Davis et al. (1989). It is within this
context that accounting history has evolved
owing to the emergence of digitalized
information and communication technology
(Ramayani et al., 2023). With the emergence of
digitalized technologies and tools, the
transformation of the accounting field has been
witnessed whereby timely and relevant
accounting information is shared with internal
and external stakeholders instantly.
Drawing from the insights of the Technology
Acceptance Model, it is not surprising to note
that digitalized information and communication
technologies offer more responsiveness in terms
of recording accounting data and information
(AlNasrallah, & Saleem, 2022; Ramayani et al.,
2023). The acceptance of digital technologies
like artificial intelligence and deep learning has
improved the quality of accounting information
and also augmented the level of disclosure and
transparency. The adoption of digital
technologies in the accountancy profession has
ensured efficiency in the provision and
dissemination of accounting information.
More interestingly, small and medium
enterprises are also adopting e-accounting in line
with the digitalization paradigm shift of the 21st
century (Kumala et al., 2021). E-accounting
offers a solution for the disclosure and
transparency of financial information. Despite
the importance of e-accounting to small and
medium enterprises, it is evident that they have
to consider many factors before adopting digital
technologies in the accounting field. These
factors are the availability of digital skills and
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competencies, the cost of the e-accounting
system, the culture of the organization, and the
limitations of e-accounting software.
Extensive literature evidence from existing
studies have shown that digital technologies are
useful to efficiency, effective service delivery
and customer satisfaction (Demirkan et al., 2016;
Tekbas & Nonwoven, 2018). For example,
Kozarkiewicz (2020) find that digital
technologies enable organizations to keep abreast
with ever changing customer needs, overcome
threats by creating new and better
competitiveness opportunities which brings
value for future sustainability. Moreover,
financial sustainability of accounting firms is
increased by digitisation of core business
functions and abandonment of cumbersome and
demanding manual processes towards operations
automation due to increased speed, accuracy, and
cost-effectiveness of performance and boosting
audit quality and efficiency (Payne & Curtis,
2017; Al-Htaybat et al., 2017; Clohessy et al.,
2017; Hilali et al., 2020; Verhoef et al., 2021).
These benefits accrue due to new avenues opened
by digital transformation like cloud computing,
which allows firms to use latest accounting
software and infrastructure (Trigo et al., 2014;
Pedrosa & Costa, (2014, 2020) as well reduced
forecasting errors Bin-Abbas & Bakry, 2014;
Tsai et al., 2015; Rezaee et al., 2002; Manita et
al., 2020; Erasmus & Marnewick, 2021;
Papagiannidis et al., 2023. Accounting
information production cost are significantly
reduced by digital technology usage and ensures
its timeous and continuous availability (Correia
et al., 2019; Sofilkanych et al., 2023), enabling
easy storage, processing, and analysis of large
volume of data critical for decision-making
(Maciejewski, 2017; Rippa & Secundo, 2019;
Sheng et al., 2020). Though the way auditors
communicate, and document accounting
information is adversely affected by the
emergency of digital technology (Kumala et al.
(2021) in contrast, efficiency and accuracy of
tasks, information reporting and interpretation, is
enhanced since all transactions are conducted in
an electronic environment (Begum, 2019;
Phornlaphatrachakorn & Kalasindhu, 2021) and
real-time accounting automated enable firms to
efficiently review their processes and procedures
and address loophole promptly. For example,
Begum (2019) finds that the use of blockchain
technology ensures the immutability of shared
records via decentralization of the digital ledger.
Additionally, evidence have shown that the
appetite to adopt digital accounting information
system, financial reports quality, and the
effectiveness of strategic decision-making is
much dependent on the speed of digital
transformation (Phornlaphatrachakorn &
Nakalasindhu, 2021; Al-Htaybat et al., 2017).
Digital technologies hae also a darker side. The
first risk is vulnerability to internet hackers
which endangers the whole organizations, clients
and individuals’ employees’ private and
confidential financial information and also
compromising the reliability of source data and
financial statements (Barta, 2018; Thottoli,
2021). Cloud computing-based technology for
example enforces certain threats like inadequate
data protection and confidentiality (Chou, 2015),
another risk include increase in structural
unemployment of accounting professionals due
to their perfect substitutability with digital
technologies which are much efficient, more
reliable, more precise and cost effective.
Interestingly, like evidence from the medical
field (Sofilkanych et al., 2023) and
neuromarketing (Hurzhyi et al., 2023), despite
the emergence of new technologies in the
accounting field, it is unfortunate that not much
is known concerning the quantifiable (monetary
value) of losses, unemployment compensation
claims and number of new jobs created due to
risks caused by digital technologies risks in the
accounting firms which have adopted AI, robots,
softwares and machine learning. This is
suggested as the new direction further studies
should pursue.
In conclusion, the digital transformation is a
catalyst for efficiency, accuracy, and innovation
in accounting. It enhances the role of
accountants, allowing them to focus on more
creative, non-routine tasks. For auditors, it
contributes to precise planning, analytical review
procedures, relative importance assessments,
internal control evaluations, and continuity
decisions (Herbert et al., 2016; Gulin et al.,
2019). The adoption of digital technologies is not
only beneficial for organizations but also
revolutionizes the roles and responsibilities of
accountants and auditors in the ever-evolving
digital landscape. But it also has a darker side.
Thus, in light of the SWOT analysis, digitisation
of accounting field has strength, weaknesses,
creates opportunities and threats. Surprisingly,
studies that applied the SWOT analysis to assess
the role of digital technologies in revolutionising
the accounting profession using systematic
literature review approach are sparse. Thus, this
study seeks to close this extant literature gap.
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Methodology
General background
The research is grounded in technological
acceptance theory, addressing a gap in the
literature concerning the impact of digital
technologies in the accounting field, and seeks to
contribute to the field by attempting to critically
examine the contribution of digital technologies
in accounting and reporting with a special focus
on its advantages, limitations, and possible risks.
The study adopted a series of scientific method
to answer the research questions.
Like similar studies Nurgaliyeva et al. (2022)
Sofilkanych et al. (2023), the study applies the
critical realism philosophy, induction, methods
of logical and structural analysis, deduction
narrative enquiry, systematic literature review,
comparison as well as concretisation and
formalisation. Guided by the technological
acceptance theoretical model and the study was
done considering the priority principles of
conducting comprehensive research, using a
systematic approach. Detailed procedure
followed to accomplish the task, as well as the
inclusion and exclusion criteria are addresses in
the section.
Instrument and procedures
The selection process was aided by bibliometrics
software, ensuring a thorough and replicable
search strategy. The review followed four
fundamental steps in line with the review
protocol adopted similar studies (Vdovichena et
al., 2022; Enholm et al., (2022) and Nurgaliyeva
et al. (2022). Firstly, framing the research
question and the search criteria for articles to be
reviewed (identification stage). Secondly, the
searching for relevant articles using search
criteria (Screening stage). The search terms used
are “advantages, risks and limitations of AI,
robots and machine learning in accounting and
reporting”. Thirdly, assessing the articles for
relevance to the study in line with inclusion and
exclusion criteria (eligibility stage). The
inclusion criteria were based on relevant
literature searches of global databases on the
research topic in professional journals,
monographs, and materials of scientific
conferences using the search words from step 2.
The searched data bases are Scopus, IBSS,
Google Sholar, Science Direct, and Web of
Science. Lastly, summarising the outcomes from
the review and interpreting the findings
(inclusion stage). The exclusion criteria
employed is exclusion of grey literature and
studies which that used other digital technologies
other than AI, robots and machine learning. The
analysis of the review findings was presented
using thematic analysis. The review process is
expanded in Figure 1. For example, Figure 1
illustrates the step-by-step process of our
systematic and inductive literature review,
detailing each stage from identification to
inclusion.
Figure 1. Systematic, deductive and inductive literature review process.
Source: authors' own development
Google scolar Scopus database search (n= 78)
Reviewing of titles and abstract and also based on recency
(2014 to date) to exclude old and irrelevant literature (n= 41)
Assessing of introduction to exclude articles found to be
irrelevant and from grey sources (n= 15)
Examination of full articles for inclusion or exclusion (n= 26)
Scopus articles included in the systematic review (n =26 Scopus
literature articles)
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Data analysis
The study applies the thematic analysis analysis
on three emerging themes from the four-step
systematic, deductive and inductive process. The
three emerging themes emanates from the search
words are “advantages of using AI, robots and
machine learning on accounting and practice”,
limitations of using AI, robots and machine
learning on accounting and practice” and “risks
of using AI, robots and machine learning on
accounting and practice”. There results will be
reported through the narrative and use of tables
approach as per the three emerging issues. Since
this is a qualitative study, we check for
trustworthiness of the systematic literature
reviewed by only using verifiable and articles
from accredited international referred journals
and exclude grey literature as well as data
triangulation. The methodology is not free from
shortfalls. For example, it does no segregate
advantaged and risks of digital technologies of
developing, developed and emerging economies
differently which require a case study approach
as well as quantitative design. Moreover, given
that it’s a qualitative study it cannot show the
extent of the impact of digitisation on accounting
profession based on hypothesis testing.
Results and discussion
The systematic, inductive, and thematic literature
review evidence on advantages, risks and
limitation of digital technologies on accounting
and reporting are summarised in Table 1. The
detailed narration in the context of body of
knowledge of the study finding follows the table.
Table 1.
Advantages, risks, and limitations of Digital technologies on accounting and practice
Themes
Advantages
* Digital technologies like leveraging AI, cloud computing, big data analytics, and deep
learning advancements can improve accounting and auditing practices. * Digital technologies like artificial intelligence (AI) boosting audit quality and
efficiency. * Digital technologies also lead to time saving in audit tasks and allows auditors to
allocate their time and effort effectively. * Digital technologies reduced audit costs and enhanced productivity and dependability
in accounting and reporting profession. * Digital technologies foster accuracy, precision, and data quality leading to better
financial reporting and analysis.
Risks
* Cyber-security risk – digital technologies are vulnerable to internet hackers which
endangers the whole organizations, clients and individuals employees private and
confidential financial information and also compromising the reliability of source data
and financial statements. * Cloud computing-based technology like Gutsalenko et al. (2018) observed enforces
certain threats such as inadequate data protection and confidentiality. * Digital technologies lead to high structural unemployment of accounting professionals
due to their perfect substitutability with digital technologies which are much efficient,
more reliable, more precise and cost effective.
Limitations
* Shortages of technologically competent and experienced accounting professionals like
auditors in the job market. * Environmental factors like poor macroeconomic performance which affect the size of
a client's business since digital technologies yield economies of scale and scope on a
larger accounting clients and tasks. * Exorbitant cost of digital accounting softwares to perform computer-assisted auditing
tools and techniques (CAATs) hinders digital technologies in accounting profession.
For example, Pedrosa and Costa, (2014, 2020) find that computer-assisted data mining
techniques are still neglected or used by only a few practicing accounting professionals. * Unavailability of generalized audit software (GAS) in a variety of languages as
hinderances of digital technologies on effectiveness of accounting and reporting. * Inadequate computerised auditing training as well as limited understanding of special
functions of audit software by audit assistants. * Unreliable digital technologies complements like reliable internet connectivity and
electricity especially in developing economies
Source: authors' own development
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Theme 1. Advantages of digitisation on
accounting and reporting
Evidence from extant literature evidence show
that digital technologies like leveraging AI, cloud
computing, big data analytics, and deep learning
advancements can improve accounting and
auditing practices (Clohessy et al., 2017; Verhoef
et al., 2021) by boosting audit quality and
efficiency (Payne & Curtis, 2017; Hilali et al.,
2020). Similarly, Yigitbasioglu et al. (2023) find
the adoption of automated accounting workflows
results in better accounting record management
and Jain (2023) observes green innovation do to
catalyse investment perception and firm
performance. Digital technologies also lead to
time saving in audit tasks, which allows auditors
to allocate their time and effort effectively
(Thottoli et al., 2022), reduced audit costs and
enhanced productivity and dependability
(Correia et al., 2019; Sofilkanych et al., 2023) as
well as improving management effectiveness
(Hilali et al., 2020), accuracy, precision and data
quality (Bin-Abbas & Bakry, 2014; Tsai et al.,
2015; Rezaee et al., 2002; Manita et al., 2020;
Erasmus & Marnewick, 2021; Papagiannidis et
al., 2023). However, Kumala et al. (2021) find
the auditors' work has not been tremendously
affected by the emerging digital technology, but
the technologies only affected how they
communicate and document accounting
information. Thus, there is further which exact
aspects of accounting information and
documentations which were affected more.
However, the auditors' work has not been
tremendously affected by the emerging digital
technology, but the technologies only affected
how they communicate and document
accounting information (Kumala et al., 2021. It
is with this context that auditors’ efficiency in
these areas of accounting has significantly
improved, due to anti-crisis abilities and offer
solution and prospect to modern organisational
challenges (Rybalchenko et al., 2022; Hurzhyi et
al., 2023; Sembiyeva et al., 2023). Like evidence
from the medical field (Sofilkanych et al., 2023),
despite the emergence of new technologies in the
accounting field, it is unfortunate that not much
is known concerning the impact of digital
technologies in the accounting field.
Theme 2. Risks of Digital technologies on
accounting and reporting
Literature review evidence shows that like
similar in professions suck as marketing
(Hurzhyi et al., 2023), medical science
(Sofilkanych et al., 2023), government
department (Odat, 2023) and green energy sector
(Sembiyeva, et al., 2023), digitisation poses
dangers to accounting and reporting profession.
This concur with evidence that adoption of
digital technologies like what mortgage lending
is to the construction industry (Abdullayeva &
Ataeva, 2022), is a double-edged sword
(Gutsalenko et al., 2018; Vdovichena et al., 2022;
Otonne et al., 2023). The first risk is vulnerability
to internet hackers which endangers the whole
organizations, clients and individuals’
employees’ private and confidential financial
information and also compromising the
reliability of source data and financial statements
(Barta, 2018; Thottoli, 2021). Cloud computing-
based technology for example enforces certain
threats like inadequate data protection and
confidentiality (Chou, 2015), another risk
include increase in structural unemployment of
accounting professionals due to their perfect
substitutability with digital technologies which
are much efficient, more reliable, more precise
and cost effective. Interestingly, like evidence
from the medical field (Sofilkanych et al., 2023)
and neuromarketing (Hurzhyi et al., 2023),
despite the emergence of new technologies in the
accounting field, it is unfortunate that not much
is known concerning the quantifiable (monetary
value) of losses, unemployment compensation
claims and number of new jobs created due to
risks caused by digital technologies risks in the
accounting firms which have adopted AI, robots,
softwares and machine learning. This is
suggested as the new direction further studies
should pursue.
Theme 3. Limitations of digital technologies
on accounting and reporting
Thematic analysis finds the limitations of of
digital technologies on accounting and reporting
are unreliable internet speed and connectivity as
well as reliable power supply especially in
developing countries. Environmental factors and
availability of technically competent accounting
profession also act as limitation to the
effectiveness of digital technologies on
accounting and reporting (Thottoli et al., 2022).
The main constraints towards adoption of
emerging digital technology tools for audit
software in the audit process are observed are
inadequate computerised auditing training as
well as limited understanding of special
functions of audit software by audit assistants
(Abou-El-Sood et al., 2015; Thottoli, 2021) For
example, Widuri et al., (2016) observe shortage
of technologically competent and experienced
auditors in the job market, environmental factors,
expectations, the size of a client's business, and
the unavailability of generalized audit software
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(GAS) in a variety of languages as hinderances
of digital technologies on effectiveness of
accounting and reporting. The cost of digital
accounting softwares to perform computer-
assisted auditing tools and techniques (CAATs)
is another limitation towards adoption of digital
technologies in accounting profession. For
example, Pedrosa and Costa, (2014, 2020) find
that computer-assisted data mining techniques
are still neglected or used by only a few
practicing accounting professionals. despite the
emergence this limitation it is unfortunate that
not much is known concerning the minimum
accounting firm size which can adopt these
technologies without imposing a heavy financial
burden on the firm and the comparative values
the firm will gain visa viz losses incurred it
adopts digital technologies like AI, robots,
softwares and machine learning. This is
suggested as the new direction further studies
should pursue.
Conclusions
The study seeks to identify advantages, risks and
limitations pf digital technologies on accounting
and reporting. It was found that digital
technologies are a double aged sword. It has both
the bright and darks sides. The bright side of
digital technology is improvement of accuracy,
speedy and efficiency of accounting and
reporting. It also reduces auding costs and
enhance efficiency, dependability, and
productivity accounting professionals. In
contrast, digital technology’s darker side
includes vulnerability of organisations,
employees, and client’s confidential financial
information through risks like hacking, which
also compromise the reliability of financial
statements. It also leads to structural
unemployment when accounting professional are
substituted by digital accounting information
systems. Lastly, there are limitations to
application of digital technologies to accounting
and reporting. such limitations include
inadequate training and preparedness of
accounting professionals to use digital
technologies. It is recommended that accounting
professionals and practitioners as well as policy
makers should massively invest in new
accounting digital technologies in the current 4th
industrial revolution. Also, more training of
accounting professionals is required for the to
keep abreast with highly evolving digital
accounting technologies. Lastly, cyber security
and firewalls of digital accounting system needs
to be upgraded to curb cyber threats like hacking.
Looking, forward, digitisation align well to the
philosophy of creation by destruction, where
some accounting roles will face extinction while
new ones are created. Overall, digitisation of
accounting profession has more strengths, create
more opportunities, is associated with weakness
and threats.
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