FAR3

The term big data is known to be the data collections, whether sorted or unorganized.
The data are frequently defined in terms of the four Vs which are volume, variety, velocity,
and veracity (Gepp et al, 2018). Volume is data sets that are sufficiently big that standard
systems are insufficient. Variety represents many data types, including text-based, hybrid,
quantitative, as well as photos, video, and other media. In addition, velocity measures the rate
at which new data is made public, which is increasing significantly. Depending on the quality
and importance of the data, its validity may change dramatically over time. The auditing
profession has access to a sizable and expanding collection of data that is becoming more
diverse and reliable. Quantitative and qualitative data, as well as accounting and non-
accounting data, are all included in big data and are made available in vast quantities, in a
variety of forms, and in real-time (Bag et al., 2020). Big data can enhance auditing as well as
management accounting, financial accounting, and financial reporting procedures (Werren et
al, 2015, Yoon, Hoogduin, & Zhang. 2015). In this sense, the terminology big data also refers
to inference-drawing techniques and technology. These techniques usually seek to extract
causal relationships and non-linear correlations from data that frequently has very little
information. Due to the form of the data, these methods usually impose none or very minimal
distributional constraints.

The accounting industry has a number of incredible growth potential because of big
data. Big data predictive models may enhance risk management, budgeting, and the
effectiveness of auditing tasks. Big data accounting research is still in its early stages at the
moment. The usage of big data in accounting is mostly theoretical, and there is a dearth of
practical data to support it. Some accounting issues that were opted by Ibrahim, Elamer &
Ezat (2021) are financial reporting, performance evaluation, audit evidence, risk
management, corporate budgeting, and activity-based methods as there appears to be a
synergy between big data and these methods. Predictive analytics might be useful and
beneficial in this situation because other methods, like budgeting, may rely on prediction.
Cost estimation is a key budgeting process that might be made better by using predictive
analytics. Furthermore, financial reporting is another illustration where enterprises must
provide information on a variety of financial and non-financial elements of their operations.

Nevertheless, other potential connections between big data and accounting,

are SWOT analysis, target costing, the influence of the organisational environment, cost
estimation, and Six Sigma (Ibrahim, Elamer & Ezat, 2021). Before utilizing target costing,
businesses must conduct consumer research to comprehend the reasonable pricing and
different product qualities that buyers need. Since SWOT analysis requires the gathering and
assessment of internal and external data, big data solutions should be enhanced. How Six
Sigma could be more efficient when used in a big data context is an intriguing topic.  A
fascinating research on the application of Sig Sigma in big data situations is presented by
Koppel and Chang (2020). They think that Six Sigma used in a large data setting might offer
a competitive advantage. As a matter of fact, Big data approaches may be used in
accounting in a variety of ways, especially when they are paired with traditional audit
methods and professional judgement. There are options for accountants to obtain fresh
information and insight, manage risks, and predict future results due to the fad of big data
analytics in accounting, which is achieved by expansion in computing power, the capabilities
to acquire data, and utilisation of various kinds of data from multiple outlets. Knowing how
big data affects accounting decisions might provide helpful information that could help
businesses use big data. By showcasing the decision-making choices provided by big data
analytics in accounting, businesses and accountants are encouraged to begin utilising big data
to assess their current financial performance and find solutions to problems pertaining to their
businesses.

Conclusion

From this article, we can conclude that, the expansion of accounting enhances the
productivity of accountants based on IT tools that influenced the economic life to work
smarter and efficiently as the software used are time-saving. Improvements in company
performance, corporate accounting system development, and the introduction of AI in
accounting were all made possible by IT advancement. Additionally, AI may assist in
automating monotonous and normal operations and procedures as well as delivering services
with a specific emphasis more proficiently and efficiently. On the other hand, b ig data may
revolutionize audit and forensic accounting by enhancing company, as well as awareness of
market circumstances, proactive planning, and risks.

The responsibilities of an accountant have altered as a result of technology's

significant influence on accounting. Accounting specialists can now focus on data analysis to
assist their clients in developing improved business choices and achieving their strategic
goals because formerly time-consuming tasks can now be accomplished fast and easily.
Online data is now accessible to everyone, making industry analysis a simple and
easy process. Because of improvements in accounting software and apps, accountants' work
has become more skilled. Companies can now avoid tax fines and other issues thanks to
modern, smarter software's capacity to ensure correctness and reduce errors. The accounting
sector has undergone a radical transformation as a result.

Reference

Ibrahim, A. E. A., Elamer, A. A.. & Ezat, A. N. (2021). The convergence of big data and
accounting: Innovative research opportunities. Technological Forecasting and Social
Change. Retrieved from
https://www.researchgate.net/publication/354100049_The_convergence_of_big_data_a
nd_accounting_Innovative_research_opportunities/download

file:///C:/Users/dell/Downloads/Acceptedversion24.08.2021.pdf

Bag, S., Pretorius, J. H. C., Gupta, S., & Dwivedi, Y. K. (2020). Role of institutional
pressures and resources in the adoption of big data analytics powered artificial
intelligence, sustainable manufacturing practices and circular economy capabilities.
Technological Forecasting and Social Change, 120420. Retrieved from
https://doi.org/10.1016/j.techfore.2020.120420

Gepp, A., Linnenluecke, M. K., O'Neill, T. & Smith, T. (2018). Big Data in Accounting and
Finance: A Review of Influential Publications and a Research Agenda. 4th Forensic
Accounting Teaching and Research Symposium. Retrieved from
https://www.researchgate.net/publication/316616708_Big_Data_in_Accounting_and_Fi
nance_A_Review_of_Influential_Publications_and_a_Research_Agenda

Warren, J. D., Moffitt, K. C. & Byrnes, P. (2015). How Big data Will Change Accounting.
Accounting Horizons 29 (2):397-407.

Yoon, K., Hoogduin, L. & Zhang, L. (2015). Big data as Complementary Audit Evidence.
Accounting Horizons 29 (2):431-438.
The adoption of IT tools to carry out accounting responsibilities and activities is one of the
most significant developments in information technology (IT). It is apparent that the
accounting industry has seen significant transformation in the last few generations,
particularly in the wake of the advancements in information technology (IT) tools like
artificial intelligence and related technologies. In reality, one of the most recent innovations
in technology that has had a significant influence on the industry is the employment of
contemporary IT tools to carry out financial reporting and accounting responsibilities. The
conventional accounting system, which was formerly characterized by a succession of
document operations that took far longer times, has been transformed by advanced
technologies into a completely new IT-based structure that accomplishes the task more
successfully, efficiently, and promptly.

As a result, even something as simple as order placement for production-related substances

can now be done electronically with the help of IT. This has digitalized the inventory tracking
system, and as a result, machines can now independently make purchases at predetermined
re-order levels with or without regular intervention.

In this article, we analyze how the accounting field has been impacted by IT. We stated that
the compilation of financial statements is the traditional responsibility of accountants, and as
a result, many duties are performed as part of that job. Accountants in the IT era are indeed
able to generate and existing economic accounts more promptly and precisely because to the
development of sophisticated IT technologies. The accessibility of the web has also improved
outside users' capability to access financial information. This report also makes the case that
future accountants and accounting procedures are expected to be virtualized, interact with and
use artificial intelligence machines, invest in big data, and how blockchains impacts
accounting in general.

Accounting is crucial towards the economies of the nation's today since it is the technique
that connects money across borders. Accounting stands apart from other disciplines most
significantly by responding to changes more quickly than others. Whether the globalization-
produced standards are implemented globally or arrangements are made for their
implementation. As from least developed to the most advanced nations around the world,
accounting does indeed have a common framework owing to its widely accepted standards,
norms, and objectives. This strategy manifests in actuality with values that simply result from
specific globalization criteria, as can be seen (Ay, 2017). One of the only factors that has
influenced the performance of those countries' globalization is the worldwide acceptance of
accounting standards like IFRS and GAAP.

Accounting is traditionally the practise of gathering data related to money, transactions, and
events), categorizing it, summarizing it, presenting it, and then analyzing the findings to help
users make decisions (Dandago and Rufai, 2014). The concept of accounting includes a
systematized approach to gathering, analyzing, recognising, processing, and communicating
financial data concerning economic entities (Ballada and Ballada, 2011). The accounting
operation is performed in cycles, gathering data on transactions and occurrences via a variety
of papers sent and collected. These records, which are frequently known to as primary
sources, contain data that accountants gather and consolidate into year-end financial
statements which are helpful to internal stakeholder and external stakeholders for the purpose
of making decisions. (Hall, 2012). However, because organizational operations are ongoing
and the accounting method generally entails a large number of time-consuming duties, the
demands placed on accountants have increased.

However, improvements to the accounting system brought about by IT breakthroughs have

certainly changed economic life. Productivity has risen attributable to computers and other
technological IT tools that make it easier to transmit information quickly, collaborate with
colleagues in different locations, and gather and analyze data. Currently, the entire accounting
procedure is computerized. Accountants today rely on such technologies to supply the
necessary knowledge that will streamline the reporting system as from point of transaction,
recording, and analysis of regular data to compilation of final financial reports (Lim, 2013).
The use of new technologies by accountants nowadays allows them to do duties more
quickly, correctly, and successfully, or just (Imene at al, 2020)

Globalization has complicated the accounting environment and sparked discussion and debate
on issues of development, scope, and influence in the accounting industry. Understanding
these developments and how they affect accounting is crucial considering the shifts that
globalization brings forth.

In this era of modernization, the expansion of artificial intelligence in everyday life has
shown a growth to the extent where everything is making use of the AI (artificial intelligence)
such as speech recognition to language translation. Not only that, but artificial intelligence is
also said to be one of the technologies that can transform the whole process of accounting,
mainly bookkeeping like data entry and bank statement reconciliation (Gray, 2022). Artificial
intelligence can be defined as the ability of a digital computer or computer-controlled robot to
perform tasks commonly associated with intelligent beings (Copeland, 2022). This software
or technology helps both accountants and businesses in managing their tasks and perform
repetitive tasks efficiently compared to when a human being is trying to complete it. AI plays
such a huge role in acting as a supporting tool to save time especially for the mundane and
repetitive tasks (Gray, 2022). The system is basically used in the form of machine learning
where any data is given or key in using the software so they can learn from the data and
perform any required task selected.

Besides that, the use of AI has gradually dominated the entire population of accounting
transactions which is in improving audit quality and obtaining more audit evidence on a
larger scale. This system became a game changer for the auditor especially in finding and
providing audit evidence because with this system, it can provide audit evidence obtained
from examining 100 per cent of the transactions at the same time eliminating sampling risk
(Dhoraisingam, Subramaniam & Ramasamy, n.d.). The AI itself has been targeted explicitly
for data acquisition which could help the auditors to better perform their audits by focusing
on the important and useful evidence and unusual or suspicious transactions rather than
spending more time examining the fixed data. Plus, by focusing on specific issues on the
transactions, it allows the auditor to devote more time to areas that require higher-level
judgment. For example, AI has the feature of enabling full automation for time-consuming
tasks such as payment transaction testing which includes the process of extracting any
supporting data for further substantive testing. The software comes in handy by undertaking a
complete population analysis to investigate transactions that can be categorized as a risk of
material misstatement or deviation from planned materiality (Dhoraisingam, Subramaniam &
Ramasamy, n.d.).

Other roles that artificial intelligence has in the world of accounting which has given a
positive impact for this industry are artificial intelligence boosts productivity and output
quality even if there is a wide range of data or information that needs to be processed on time
which results in greater transparency and auditability (Aspire Systems, 2022). Besides that,
AI has the potential of providing a broad range of opportunities and minimizes the traditional
time-consuming responsibilities taken by manual hands from the accounting teams which
helps in analyzing more venues for business growth. Other than that, one of the biggest
advantages in using this system is the ability to examine and predict the future trends in
accounting transactions because AI helps in forecasting accurate financial statement in
addition with the machine learning, finance or accounting professionals can make use of the
information to predict trends based on historical data or records (Aspire Systems, 2022). The
teams under the accounting world should be grateful and appreciate the space that they have
now in contributing or building new business relationships, improve existing partnerships and
work from a position of strength which all thanks largely to AI systems or technology and the
resulting critical insights.

The term "big data" refers to data collections, whether organized or unstructured. The data are
frequently defined in terms of the four Vs which are volume, variety, velocity, and veracity
(Gepp et al, 2018). Volume describes data sets that are sufficiently big that standard systems
are insufficient. Variety represents many data types, including text-based, hybrid,
quantitative, and other formats, as well as photos, video, and other media. Besides that,
velocity evaluates how frequently new data is made available, which is happening more
frequently and at a much faster rate. As for the veracity of the data, it might alter significantly
over time depending on its quality and significance. The auditing profession has access to a
sizable and expanding collection of data that is becoming more diverse and reliable.
Quantitative and qualitative data, as well as accounting and non-accounting data, are all
included in big data and are made available in vast quantities, in a variety of forms, and in
real-time (Bag et al., 2020). Big data can enhance auditing as well as management
accounting, financial accounting, and financial reporting procedures (Werren et al, 2015,
Yoon, Hoogduin, and Zhang. 2015). Inference-drawing methods and technologies are also
referred to as big data in this context. These methods frequently aim to derive non-linear
correlations and causal effects from data that frequently contains very little information.
These methods frequently make no or very few distributional constraints due to the form of
the data.

The accounting industry has a number of incredible growth potentials because of big data.
Big data predictive models may enhance risk management, budgeting, and the effectiveness
of auditing tasks. Big data accounting research is still in its early stages at the moment. The
use of big data in accounting is mostly theoretical, and there is a dearth of practical data to
support it. Some accounting issues that were opted by Ibrahim, Elamer & Ezat (2021) are
financial reporting, performance evaluation, audit evidence, risk management, corporate
budgeting, and activity-based methods as there appears to be a synergy between big data and
these methods. Predictive analytics might be useful and beneficial in this situation because
other methods, like budgeting, may rely on prediction. Cost estimation is a key budgeting
process that might be made better by using predictive analytics. Furthermore, financial
reporting is another illustration where enterprises must provide information on a variety of
financial and non-financial elements of their operations.

Nevertheless, other possible areas of convergence between big data and accounting are
SWOT analysis, target costing, the influence of the organizational environment, cost
estimation, and Six Sigma (Ibrahim, Elamer & Ezat, 2021). Businesses must perform
consumer research to understand the reasonable costs and distinctive product attributes that
customers demand before using target costing. Since SWOT analysis requires the gathering
and analysis of both internal and external data, big data solutions should be enhanced. How
Six Sigma could be more efficient when used in a big data context is an intriguing topic. A
fascinating research on the application of Sig Sigma in big data situations is presented by
Koppel and Chang (2020). They think that Six Sigma used in a large data setting might offer
a competitive advantage. As a matter of fact, Big data approaches may be used in accounting
in a variety of ways, especially when they are paired with traditional audit methods and
professional judgement. There are options for accountants to obtain fresh information and
insight, manage risks, and predict future results thanks to the fad of big data analytics in
accounting, which is made possible by expansion in computing power, the capacity to acquire
data, and utilisation of various kinds of data from multiple outlets. Understanding how big
data impacts accounting decision-making offers useful facts that may aid firms in utilising
big data. Showcasing the decision-making options made possible by big data analytics in
accounting also motivates companies and accountants to start using big data to evaluate their
existing financial performance and discover solutions to issues about their business.

The accounting world or any industry nowadays has been greatly impacted by digital
technology but most of it involves replacing analog tools with similar digital counterparts.
However, a different case with the blockchain because it is said to be changing how
accounting is done on a more fundamental level (Kunselman, 2021). The basic role of
blockchain in accounting is in maintaining a ledger of financial information and transferring
the ownership of assets in a safe and verifiable manner (Kunselman, 2021). A blockchain can
be defined as a digital ledger created to capture transactions conducted among various parties
in a network. If the blockchain is implemented appropriately, it can offer effective
unbreakable protection especially in all the transactions which can directly encourage less
fraud and more trust in the information provided. One of the concerns to why accountants
started using and implementing blockchain is because of the measurement and
communication of financial information and the analysis for all the information that should
be clear and managed efficiently (ICAEW, 2022). Other than that, the concern of ascertaining
or measuring the rights and obligations over property or planning how to best allocate
financial resources to avoid any unnecessary transaction made (ICAEW, 2022).

The impact of blockchain in accounting can be useful and threatening to the industry any
ongoing transaction in a certain organization. The useful impact of blockchain is that every
member in an organization has direct access to record entries in the ledger using their own
personal computers. One of the advantages is all transactions can be recorded offline and can
be updated anytime when required (OriginStamp, 2022). The distributed ledger from this
system can keep everyone updated with the entire ledger without needing to keep any
information in separate databases. Besides that, the blockchain allows automatic consensus
for transaction entries which can be controlled by different node levels (OriginStamp,2022).
This means that the degree of automation allows the organizations to set different control
levels for their staff members which sometimes other tasks can only be approved by active
nodes that belong to members with higher authority only. Furthermore, the biggest impact or
contribution that blockchain has is the accounting processes can still be continued and
performed even with a few computers down (OriginStamp, 2022). It saves many
organizations that require maintenance shutdowns which occasionally cause a break in
operation but with blockchain, the operation and processes does not affect.

However, there is also a negative impact that the blockchain has towards accounting
processes which are lack of familiarity and standardization. The basic knowledge that the
accounting teams have includes the traditional accounting systems, but blockchain systems
are still new to many users and staff as well (OriginStamp, 2022). The lesson required to
understand about the blockchain system like ledger entry processes and process codes should
be guided by intensive training experts. Plus, the organizations need to invest in skilled
programmers to customize the blockchain to their specific business requirements. Other than
that, it is quite risky to use blockchain since it will take only one malicious individual or a
small group to discover an exploit in the code which causes a significant loss of data and
funds in the organization (OriginStamp, 2022). Blockchains may not be suitable for certain
businesses and organizations as it is a complex technology to get used to, but it definitely
offers several advantages to accounting and auditing firms to deal with any shortcomings in
their operation. It is safe to categorize blockchain or distributed ledgers as one system that
will become the accounting books of the future.

From this article, we can conclude that, the expansion of accounting enhances the
productivity of accountants based on IT tools that influenced the economic life to work
smarter and efficiently as the software used are time-saving. Improvements in company
performance, corporate accounting system development, and the introduction of AI in
accounting were all made possible by IT advancement. Additionally, AI may assist in
automating monotonous and normal operations and procedures as well as delivering services
with a specific emphasis more proficiently and efficiently. On the other hand, b ig data may
revolutionize audit and forensic accounting by enhancing company, as well as awareness of
market circumstances, proactive planning, and risks.

The duty of an accountant has changed as a result of technology's increasingly significant

effect on accounting. Accounting professionals can now concentrate on data analysis to help
their customers develop improved business decisions and strategic goals because time-
consuming procedures can now be completed quickly and easily. Since everyone can access
and evaluate data online, industry analysis is now a simple procedure. The work of
accountants has become more skilled because to advancements in accounting software and
applications. With newer and more intelligent software's capacity to assure accuracy and
decrease errors, firms may now avoid tax fines and other problems. This has completely
changed the accounting industry.