Principles of accounting Assignment

Principles of Accounting 1
PRINCIPLES OF ACCOUNTING
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Principles of Accounting 2
PRINCIPLES OF ACCOUNTING
Executive summary
Technological advancement is currently taking control of every sector. These
technological advancements are quickly reshaping the world extending to accounting sector.
Accounting work has over the time been more accurate and simple based on computerization and
various artificial intelligence models.However, technology advancement is likely to increase in
the future leading to massive change in accounting sector such as change of ethics and
operational environment. Furthermore, the technological advancements will present accountants
with various challenges and opportunities which should be looked into by the relevant
stakeholders. The content of this paper is a report on the in impact of future technological
advancement on accounting ethics, skills and career opportunities. The paper discusses the three
key aspects accounting skills, ethics and career opportunities ending with two key
recommendations and a short conclusion.

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Table of Contents
Executive summary.....................................................................................................................................3
Introduction.................................................................................................................................................3
Future technological innovation impact on accountant skills......................................................................4
The impact of future technologies on career opportunities in accounting....................................................7
Opportunities...........................................................................................................................................7
What does future advanced technology mean for the accounting career profession a part from the
opportunity?............................................................................................................................................9
Changes necessary for accountants to remain relevant in the future with the advancing future
technology.............................................................................................................................................10
The impact of future technological advancement on accounting ethic......................................................11
Impacts of technology on ethics and standards..........................................................................................12
Recommendation.......................................................................................................................................13
Reassessment of accounting ethics and operational environment..........................................................13
Integration of accounting with IT..........................................................................................................13
Conclusion.................................................................................................................................................14
References.................................................................................................................................................15

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Introduction
Accountants have constantly enjoyed technological advances to push them to finish their
projects all the more precisely, rapidly or simply: from the incised clay tablets of the Sumerian
scribes, through the calculators of the nineteenth century, to the current machines and computers
of the twentieth century. In any case, all of these innovation improvements were basic
propositions by comparison with the various advancements that are now quickly reshaping the
worlds of business and bookkeeping (Grabski et al. 2011). Heading into the 21st century
innovation extends into the cloud, enormous information, versatile and social coordinated effort
are merging to change the manners by which we store data and get information innovation assets,
share learning and encounters, and access items and administrations. In the meantime, these
patterns are likewise supporting and impacting improvements in digital security, advanced
benefit conveyance, apply autonomy, increased what's more, virtual reality, and counterfeit
knowledge. This paper reports on the several impacts that the technological innovations will pose
on the accountants’ skills, ethics and consequently career opportunities.
Future technological innovation impact on accountant skills
It is a possibility that the future can be predicted with any extent of certainty. Through
seeking information about new technologies as they come or evolve, giving consideration to
them as they emerge, and then evaluating or examining their impacts on the finance
professionals, the people they serve and empower. Accountants can get ready to reduce the
burdens and maximize on the profits or the benefits for their respective organizations through the
proper application of these advancing technologies (Hancock et al. 2009). Otherwise, they utilize
these technologies and potentially impact the scope of what they consider or mean to be an
accountant, or otherwise the skills. In the 21st century and the coming periods the trending

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technological advancements in this context are; mobility, cloud, digital service delivery, big data,
social integration, digitized payment systems for instance, the block chain technology, cyber
security, robotics, augment and virtual reality, and subsequently the artificial intelligence. All
these are seen to be technological advancements in the 21st century and beyond, posing influence
on the accountant skills to be more specific (De Villiers 2010).
Let’s pursue in this section, such instances like the broadband mobile connectivity to the
internet. As it spread and the scope and the availability of resourceful factors like the software
also expands, the gadgets like the smart mobiles and tablets are seamlessly morphing integrated
devices that cannot be dispensed in the workplace (Buckley and Casson 2016). Accountants and
other business workforces get chance to lay their fingertips to communication and information
devices whenever and probably wherever place they need it. What does this tells us? It tells us
that their efficiency commitment to their duties are improved since they become reliable, they
can attend even to urgent balancing of ledger accounts while in their beds.
Furthermore, majority of the populace are increasingly interconnected in their
professional and personal lives and the aforementioned recent smart phones, tablets, phablets,
iPhones, and the phone pads poses the capability or the potential to revolutionize communication
and connectivity further in the scope of workplaces and the personal spheres without any
barricade of the geographical boundaries (Kleis et al. 2012). As a matter of fact this will enhance
the efficiency and the effectiveness of the accountants. Because of these social integration
beyond countries’ boundaries, the new mobile and internet connectivity, professionals get to
share through different platforms like the emails, face book, twitter et cetera, and their skills.
Through sharing of skills and knowledge in the field of financial accounting, the professionals

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get to understand the complex paradigms of accounting and they can now solve almost the
impossible problems in accounting.
The internet has developed from a stage that associates a huge number of computers, into
the system of intuitive processing stages now known as 'the cloud'. It can convey IT information
or store data, (for example, programming applications, processing power, and information
storage) adaptable and productively on the internet, as an administration (De Massis et al. 2013).
These assets can be scaled anywhere to meet a request, and got to whenever, anyplace, from
fixed and mobile gadgets. Various administrations are advertised from 'open clouds',
organizations are making their own 'private clouds' and these are developing into 'half and half
clouds' that take care of spikes in demand with open cloud services (Kaplan 2011). Accountants
and the associations they work with and for are exploiting the cloud - in business, software as a
service. Accounting frameworks were among the principal programming to turn into accessible
online where they (and their related information) have been joined by a developing scope of
business 'software as a service' (SaaS): from planning to spreadsheets (De Villiers 2010).
Utilizing cloud-based structures, for example, computers and data storage can give access
to boundless resources without the need for in advance investment, support or IT ability. Be that
as it may, the consumption based, pay-as-you-go approach is a blended gift in accountancy.
Digital services are changing business, practice, central and local authorities, foundations
and other third division associations, by exploiting new IT structures and innovations to convey
electronic business forms, internet business, portable trade, and cloud-based programming and
administrations utilizing the web and intranets (Palm and Bisman 2010). Numerous digital
services incorporate key highlights for example, self-improvement and self-evaluation answers
for benefit clients, and utilize advances, for example, talk bots, artificial intelligence) to deal with

Principles of Accounting 7
upcoming enquiries and solicitations for support (as opposed to, or notwithstanding, email), offer
intelligent live talk from sites and entrances, and impart utilizing web-based social networking
channels, for example, Facebook and Twitter (Frey and Osborne 2017).
Accountants are utilizing digital services to give resources and to get to resources.
Accounting practices are offering self- service features, for example, online information vaults
that customers can use to get to statutory and administration reports and other material the firm
has taken a shot at. Managing an account, shopping, booking flights and more is being made
more productive for clients and more cost effective for providers. Administrative services are
progressively conveyed carefully: the eXtensible Business Revealing Language (XBRL) is being
exploited to streamline and robotize forms by controllers extending from the Australian Federal
Government to the European Insurance and Word related Pensions Authority (Hortinha and
Lages 2011). In a nutshell, these innovations give the accountants the potential to improve
efficiency and clients’ satisfaction, to automate and streamline both business and their personal
services, bring about global standardization and finally to get the relevant skill for the reduction
of the cost of the public services and maximize on the benefits.
The impact of future technologies on career opportunities in accounting
In as much as it is difficult to correctly pinpoint what is likely to happen in the future, the
increasing use of technology in accounting acts as an indicator of what opportunities and impact
of future technologies in accounting (Russ 2009). According to various sources of information
show that accounting as a profession will confront huge changes within the upcoming three
decades thus expert accountants as well as their instructive organizations ought to react in order
to secure opportunities which will rise as a result of the technological advancement. The three
changes in the future technology that are likely to affect and present future opportunities to

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accountants include artificial accounting intelligence and accounting information technology and
technologies related new types of control (Qureshi and Syed 2014). Even though these
technological advancement may come with opportunities, they are additionally come with
significant difficulties for the profession. According to the research conducted by Association of
Chartered Certified Accountants (ACCA) have indicate some of the opportunities and essential
changes that are anticipated to be experienced by accountants in the year 2025 (Loeb 2015).
Opportunities
In the first place, the study research shows that certified public accountants will utilize
progressively advanced and savvy advances to improve their customary methods for working.
These advances may even supplant the conventional approach leading to the "The End of the
Accounting Profession as We Know It? Based on the quickness and the abilities of the advanced
technologies in accounting (Holtzblatt and Tschakert 2011). The profession is will also change
based on the keen programming frameworks that will bolster the pattern toward outsourcing
administrations leading to increased work load as experts will be expected to work base all the
more abroad outsourcing. However the communication accountants will have opportunities
where there will be a prominent utilization of online networking through shrewd innovation
leading to an enhanced cooperation, divulgence, commitment with partners and more extensive
groups (Lakes 2011). Online networking such as Twitter, Facebook, and Google search will
uncover more information than any corporate confirmation report and partners will utilize
devices to decipher enormous information and this is an opportunity for accountants to utilize.
Moreover, future advanced technologies will serve and support the accountants within the
financial sector by minimizing the burdens on accountants arising from traditional accounting
procedures. Through the future technologies, accountants will be presented with the opportunity

Principles of Accounting 9
to exploit technology and significantly change the nature of the profession (Anandarajan,
Anandarajan and Srinivasan 2012). Through future technological advancements, accountants are
will have more opportunities compared to the current situation. Apart from the above
opportunities, the accounting profession will experienced improved, communication, increased
speed and well as increased productivity as well as globalization (Ghasemi, Shafeiepour, Aslani
and Barvayeh 2011). These opportunities include:
 Increased communication speed and global accountant connection
 Efficiency gains and improved accounting productivity
 Advanced and improved client servicing
 Ease of data scalability, access as well data sharing and collaboration
 Enhanced financial decision making
 As well the capacity to improve personal and professional live among the accountants
What does future advanced technology mean for the accounting career profession a part from
the opportunity?
Accounting being a profession has been saturated with custom and encompassed by
structures and worry for administrative test over the decade will require a deliberate push to
grasp and proactively react to the openings and difficulties that will come with computerized and
mechanical upheaval accounting. A portion of the greatest obstacles will be around reacting in a
coordinated way and having a forward looking outlook that will link with these predicted future
technologies. According to some of the senior accountants who have expressed their concern
through various social media platforms, it is clear that innovation interruption isn't a far off
future state – it is without further ado (Holtzblatt and Tschakert 2011). On the off chance that
accountants will stay will stay important within the industry the profession needs to grasp

Principles of Accounting 10
various progressions which will enable the current accountants to stay within the industry. Also,
the pace of progress stays one of the greatest dangers to accounting as a career. In the event that
we are not proactive in our reaction to these innovation progressions then the customary review
administrations and review firms are totally open to challenge from the more lithe start up group
to the larger entities (De Villiers 2010). The reaction required is unpredictable and requires
communications from various partners. Every one of these partners is basic in guaranteeing the
capacity of the accounting profession to push ahead and the human workforce to remain
important.
Changes necessary for accountants to remain relevant in the future with the advancing future
technology
The accounting profession is changing massively based on the advanced technology
which is taking place such as big data, IT, artificial intelligences and clouding. These changes
come with various opportunities and challenges as already discussed in the above sections.
Critical changes are coming and there is high possibility that it will offer a vast open door for the
future accountants. In order to be more applicable and trusted than any other time in recent
memory. This prize will expect accountants to grasp change and to prepare and for the profession
to create individuals with an alternate scope of aptitudes and capacities relevant to the future
technologies (Buckley and Casson 2016). Based on the above, it is important for accounting as
profession to be integrated with computer programming so that accountants can be able to work
with the future advanced technologies being implemented in the sector. The forth coming
accountants should be taught in a way that while preparing that capability for the ACA gives an
important resources to the accounting graduates. Nonetheless, there is a hazard that accounting

Principles of Accounting 11
profession as currently organized there is yet a larger part to be extremely thin in its graduate
choice and required range of abilities (De Villiers 2010).
For the future, the blend of ranges of abilities is basic for accountants to achieve the
expectations of the future accounting technological advancements. In the coming three decades,
accounting as a profession will require individuals who have bookkeeping aptitudes and abilities
as well as those who are likewise amazingly Information Technology proficient and skills (De
Massis, Frattini and Lichtenthaler 2013). Systematic capacity moving and developing and going
to the fore leading to the need for the capacity to code and work with a scope of new
technological advancements in the coming future. According to the coming future technological
advancements, various organization in the world are meet these requirements through selection
of accountants in a more extensive and broader manner than they have done previously and this
pattern looks set to proceed (Frey and Osborne 2017).
Added to this is the possibility to utilize the group to convey accounting tasks such as
auditing a tasks. A future that will be empowered by innovation stages and which will convey a
radical new measurement to the adaptable and deft of the accounting workforce. Future
accountants will be of a higher quality empowered by innovation, yet this is just piece of the
condition. Profoundly gifted people will dependably be expected to translate the huge
information, report and to connect with different people on key judgment zones and give
affirmation around the new advancements which are producing the accounting information
(Grabski, Leech and Schmidt 2011). Technological innovation is not a silver slug but it is just
tantamount to the information underneath. While the everyday transmit of accountants may
change, the open doors for accounting as a profession are more prominent than at any other time
before. The accountants should take hid the technological changes which may come in the future

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in a way that they will remain relevant to accounting course (Hancock, Howieson, Kavanagh,
Kent, Tempone and Segal 2009).
The impact of future technological advancement on accounting ethic
Accounting as a profession has over the decades been guided by accounting standards
and set of professional ethics which are likely to change with the changing technology. Later and
future technological progressions in the field of accounting request a reconsideration of the
administrative condition and ethics (Horngren 2009). For the time being, as accountants
progressively utilize calculations to recognize exceptions for testing, it has been realized that
there is a dire requirement for accountant to reassess the significance of the administrative
condition and adjust their core interest which are mainly composed of accountings standards and
codes of ethics. This implies that accounting controlling boards need to work intimately with
accounting firms to comprehend the investigations in advance and to roll out some discount
improvements to administrative prerequisites or codes of conduct which will be shaped by the
future accounting technologies.
Impacts of technology on ethics and standards
Longer term disruptors, for example, appropriated records will require a totally new
administrative conditions and bookkeeping ethics that will guarantee consistency of approach
around check of records, approval and recording of exchanges based on the changing rules and
roles within an organization as a result of technology (Hortinha and Filipe 2011).
On the off chance that we need something that will bolster mechanical advancements and
be an important and proper administrative condition, we should guarantee that we don't just
attempt and shoehorn the new innovation/approach into a current structure. There should be a

Principles of Accounting 13
straightforward procedure and component for building up these new structures with contribution
from every single key partner.
The will be sharing of information form one accounting firm to another based on the
advanced communication as accountants will have the most accurate channel of communication
and consultation thus changes in the ethics regarding sharing of information.
Future technological advancements will also lead to the creation of new sets of
accounting information regulation which will be related to the use of technology such as
restriction to access of information that is vital to the organization among various ethics of
operation (Kaplan 2011).
Accounting as a sector can be a major ship to turn and a deliberate thus proactive exertion
is required with respect to accounting personnel, the set accounting standards as well as organize
accounting firms to create a path way for the advancing technology improvement to happen.
However, it is evident that current laws and ethics will go about as a boundary to the pace of
accounting technological progress hence a consequently activity is required presently to help
with the coming future technologies in accounting (Kleis, Chwelos, Ramirez and Cockburn
2012).
Recommendation
Reassessment of accounting ethics and operational environment
The advancement of technology in accounting in the coming future is likely to present
various opportunities as well as changes.it is therefore important for accountants as well as the
accounting oversight authorities to come up with various mechanisms which will be crucial in
facilitating the technological advancement progression in accounting. The oversight accounting
boards should reassess various accounting standards and ethics of conduct which has been

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noticed within the introduction as a factor which may act as a barrier to the future accounting
advancements.
Integration of accounting with IT
Even though it is difficulty to foretell precisely what will take place in the upcoming
three decades, it is vivid that the accounting sector is currently going through a mechanical
progression and computerization which require IT literacy. It is therefore recommended for
various accounting course offering colleges as well as other learning institutions to integrate
accounting course (CPA) with information technology so that the sector can have the best
accountants with the knowledge related to the future technological advancement
Conclusion
The artificial intelligence machines is currently taking control of every sector and this is
also evident within the accounting sector. However, integrated machines and all the intelligent
machines depend on the help of human beings for control. The accounting sector is likely to
change in the coming two decades based on the progressively advancing technology which will
as well come with various opportunities and challenges in bookkeeping industry which should be
well considered before it supposes the limit of control. It is therefore important for accountants
and accounting oversight boards to come up with various ways that will help accountants remain
relevant within the industry in the future with the advancing technology.

Principles of Accounting 15
References
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Principles of Accounting 16
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Principles of Accounting 17
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