Article Preview
Top1 Introduction
Digital transformation is “changes associated with the application of digital technology in all aspects of human society” (Schwertner, 2017). Technology has the power to significantly change the way that companies communicate with investors and other stakeholders, improving both the usability and timeliness of what is reported and providing new opportunities to engage (Barison et al., 2010). However, the use of technology in corporate reporting is not meeting its full potential. Information and Communications Technology (ICT) has been a major factor of efficient accounting information system and has been used to increase the reliability of accounting information (Lim, 2013). Accounting information systems include computer hardware and software fundamentals in recording accounting information. The practices show that there is a significant relationship between ICT and accounting information system (Taiwo, 2016). ICT is seen as one of the key drivers in changing the business environment, because it is integrated into almost all aspects of business. Whether professional accountants function as financial managers within a specific organisation, act as independent evaluators of the financial information and systems of organisations, or act as consultants advising organisations, they will have to interact with and be knowledge able about information technology which enables them to perform their jobs competently (Wessels, 2005). The use of ICT has been a challenge to some users and companies and has changed for still many aspects of accounting practices (Nwanyanwu, 2016).
Technology is constantly evolving and being applied. Today’s digital transformations must be built on the understanding that today’s technology will be progressively replaced with digital solutions that are currently non-existent (Sine, 2019). Rather than intimidate organizations, this fact should inspire team members to create and recommend new technology solutions, knowing that their organization is interested in constantly adapting to new tools that further its mission. This area is certainly a challenge for many organizations, especially those with complex legacy systems, but one that must be overcome (Langer, 2017).
The advances in computer technology and the maturation of the worldwide, competitive business environment mandate that virtually all types of businesses and educational institutions make significant changes. These changes are at the frontiers of what is variously known as ‘the second machine age’ (Brynjolfsson and McAfee, 2014) or ‘the fourth industrial revolution’ (Schwab, 2016). They represent a potentially transformative convergence of new and improved technological capabilities in a range of areas, including digitisation, data capture and storage, robotics and artiðcial intelligence (AI). A study by Holmes and Douglass (2021) provides insights from accounting professionals on the impact of artificial intelligence (AI) adoption and the associated risks on the accounting profession. It is imperative that accounting programs rise to the challenge of equipping students to be life-long learners in accounting to grow with the changes in the profession. Accountants maintained a distinct boundary between technology professionals and accounting practice. Blockchain is a digital ledger that records transactions conducted between different parties in a network. This technology has the potential to be very beneficial when it is applied practically to the accounting field (Parker, 2019).
The accountant profession is at the forefront of technological disruption, with accountants facing a serious threat of extinction in the next 10 years if they fail to innovate (McGuigan and Kern, 2016). Technological advancement is reshaping the way accountants engage through an automation of technical bookkeeping and compliance services, real-time financial reporting, freely available software for basic accounting practice and a renegotiating of innovative fee structures (Stokes, 2016).