Accounting Theory and Contemporary Issues: Opportunities and Threats of Artificial Intelligence

Running head: ACCOUNTING THEORY AND CONTEMPORARY ISSUES
Accounting theory and contemporary issues
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ACCOUNTING THEORY AND CONTEMPORARY ISSUES
Table of Contents
Part 2:.........................................................................................................................................2
Introduction:...............................................................................................................................2
Background:...............................................................................................................................2
Purpose:......................................................................................................................................2
Scope:.........................................................................................................................................3
Theoretical background:.............................................................................................................3
Discussion:.................................................................................................................................4
Advancement of technology:.....................................................................................................5
The way technology changed the accountants work in recent decades:....................................6
Opportunities from using Artificial intelligence in accounting profession:...............................7
Threats from using Artificial intelligence:.................................................................................9
Replacement of human and accelerating unemployment:.......................................................10
Increased maintenance and repair costs:..................................................................................10
Hampering ethical values and leading to irrelevant conclusions:............................................10
Conclusion and Recommendations:.........................................................................................11
References list:.........................................................................................................................14

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ACCOUNTING THEORY AND CONTEMPORARY ISSUES
Part 2:
Introduction:
Background:
Report on Artificial intelligence is prepared by conducting research using secondary
sources and gathering relevant information pertaining to the given topic. Conducting research
on Artificial intelligence make accounting as well as non-accounting professionals
understand the contribution of modern technology to work and task of accounts and the
benefits that clients receives from them. Study demonstrates arguing position and research
about contemporary issues in profession of accounting.
Purpose:
The report is prepared to explain importance of artificial intelligence in accounting
profession. Report explains the relevance of concept of artificial intelligence by explaining
opportunities and threats provided by that particular concept. A writing draft report is
required by managers on artificial intelligence to identify how advance technological
development is affecting the business practice of consulting firm. The objective of
generating information from preparing this report is to make the clients understand about
various marketing tools of accounting profession.
Scope:
It is identified accountants working at large consulting firm are inclined towards
knowing the possible opportunities provided by artificial intelligence along with the threats
(Wenger 2014). Many feel that there are possible business opportunities provided by
Artificial Intelligences. Contrary to this, it has been felt that the current business models are

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ACCOUNTING THEORY AND CONTEMPORARY ISSUES
threatened by artificial intelligence. Accounting professionals have embraced the waves of
automation brought by artificial intelligence for improving efficiency and effectiveness of
their work. Since 1950, AI has been a computer scientist’s aspiration and in recent years,
there have been a tremendous progress. Accountants are provided opportunities in the short to
medium terms for providing more insights, improving their efficiencies and delivering more
value to accounting business. Opportunities for more radical changes are brought by
application of AI in longer-term as decision-making task is taken over by system (). The
ultimate purpose of accounting profession is to improve the quality of investment decisions
and quality. It is required by business to incorporate technologies in transforming the
approach for solving the fundamental business problems.
Theoretical background:
This particular section explains about the historical development of the Artificial
intelligence and its evolvement. Initiation of artificial (AI) intelligence happened with
invention of computer in year 1943. The practice of artificial intelligence had waned since
late 1990s as drawn from practice of expert system (Wenger 2014). Intelligent behaviour was
stimulated with the availability of advance technology. Beginning of AI dates back to
philosophers, electronics, mathematicians, and people who theorize on principles that formed
the basics and foundations of AI. Link between human and machines was observed in the
early 1950s. Development of logic theorist is considered as first AI program that was
developed in late 1955 (Bond and Gasser 2014). It is a combination of physiology, computer
science, and philosophy with concepts of mathematics and several other disciplines. Machine
creation is common elements in field of AI. Case based reasoning, fuzzy logic, machine
learning, knowledge system, experts and pattern matching are some of the application of
artificial intelligence. AI and its application as a whole is one of the important aspect of