HOW ACCOUNTANTS CAN SURVIVE INDUSTRY 4.

Some analysts call it Industry 4.0, claiming that this is the fourth Industrial Revolution and will change
every aspect of society. Others worry about the potential downsides such as security or how workers
will be impacted by new changes. But no matter the name, the last few years has witnessed an
explosion of new technology. The Internet of Things (IoT), Big Data, and automation will affect how
businesses work, and how CPAs (Certified Public Accountant) do their jobs. It is consequently critical that
accountants look at these technological trends, understand the resulting changes, and figure out what
role they can play in the new economy which will be created. Those new things will have major effects
for CPAs both directly and indirectly.

Directly, accountants will now have to prepare to face an incoming stream of real-time financial data
instead of periodically checking in with a bookkeeper. Auditing in particular will become much easier.
Accountants can catch financial fraud faster, minimizing the damage, and can also notice financial trends
and offer more real time advice.

But only CPAs who learn how to manage these large real time data flows will be able to take advantage.
They will thus have to learn the language of IT and IoT concepts in order to construct new accounting
and reporting structures. Once that is complete, accountants can then help their clients as well,
providing advice on how to build a business structure which takes full advantage of the IoT.

Providing advice will be the main way through which Industry 4.0 will indirectly change the accounting
profession. Automation and artificial intelligence are already changing the industry so that as Firm of the
Future states, the accountant’s role will evolve from reporting and compliance work to becoming
“forward-thinking small business advisors.”

Industry 4.0 will amplify that trend, especially because many businesses are unsure of how exactly to
embrace the IoT. It does have potential risks, like hackers using less protected devices to commit data
breaches or other criminal activities. Accountants will need to help their clients analyze the upsides and
risks of using the IoT with any particular device, get the maximum value out of data they collect, and
play a crucial advisory role.

Industry 4.0 will be about speed and as financial advisors with knowledge of technology, CPAs have a
crucial role to play in helping businesses and must ensure that their own firms are not swallowed in the
new technological storm.

1. What does Cpa stand for?

2. What are the major effects of industry 4.0 for CPAs?

3. What does the word “they” in paragraph 3 refer to?

4. Why do CPAs have to learn the language of IT and IoT concepts?

5. What will happen to the accountants based on Firm of the Future?

6. Explain why industry 4.0 is deserved to follow

1. Certified Public Accountant
2. Directly, accountants will now have to prepare to face an incoming stream of real-time financial
data instead of periodically checking in with a bookkeeper. Auditing in particular will become
much easier. Accountants can catch financial fraud faster, minimizing the damage, and can also
notice financial trends and offer more real time advice.
3. CPA (Certified Public Accountant)
4. they must learn the language of IT and IoT concepts to construct new accounting and reporting
structures.
5. the accountant’s role will evolve from reporting and compliance work to becoming “forward-
thinking small business advisors.”
6. Industry 4.0 provides many advantages for accountants in carrying out their work such as
auditing easier, catching fraud faster, minimizing damage, and also being able to view financial
trends and offer more real time advice. Not only that, Industry 4.0 will indirectly change the
accounting profession. Automation and artificial intelligence are already changing the industry
so that as Firm of the Future states, the accountant’s role will evolve from reporting and
compliance work to becoming “forward-thinking small business advisors.”
Great! Kenza and his friend are the brilliant students with the highest score in their class.

Noun Kenza, students, score, class

Adjective Brilliant, highest
pronoun His, their
Verb are
Adverb
Preposition With, in
Conjunction And,
interjection Great!