The Emergence of Technology - PDF
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Added on 2021-05-31
The Emergence of Technology - PDF
Added on 2021-05-31
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LITERATURE REVIEW 1Literature ReviewAuthor’s NameInstitutional AffiliationDate
LITERATURE REVIEW 2Literature ReviewThe emergence of technology has revolutionized the way businesses conduct their activities. Before, the use of IT in business operations, things were done manually, but today most accounting systems rely on IT to carry out their operations. Information Technology, largely deals with the application of telecommunications equipment and computer applications to retrieve, manipulate, retrieve and transmit data. Accounting is complex, and there is a high likelihood of accounting specialists to make various mistakes when performing their calculationsmanually without the input of IT. However, the accounting spectrum has changed for the better since the application of IT came into force. Businesses in the modern world rely heavily on IT in accounting to manage their operations. Ideally, this literature review is more focused on the use of IT in accounting. Lim, (2013) believes that the use of IT enhances speed in computation. Accounting deals with figures and which need to be calculated to determine the correct position of financial data of any Kuwaitian company. Business transactions require cash flows which in most cases need speedy computation which can be offered by IT. Also, the large corporation dealing huge financial data can only have its data transmitted, retrieved or measured speedily if there is of information technology. Furthermore, to carry out financial reporting within a short period IT must be in place. In essence, what Lim, (2013) is trying to argue is that when organizations apply IT to theiraccounting activities they are likely to carry them out within a short time. In the same breath, Banker, Chang, & Kao, (2002) indicate in their research that quantitative and qualitative information they analyzed from the research site estimate that productivity increased significantly following IT implementation. From the reasoning of these authors, it is apparent that IT improves the activities of a company, which then results in productivity. Therefore, if the
LITERATURE REVIEW 3IT implementation enhances speed in computations, in all probability it contributes to increased performance.Besides, from the literature it has also come out that the use IT in accounting enhances accurateness specifically in computation. In the literature of Lim, (2013) the aspect of accurateness fundamentally came out. Organizations, whether profitable or non-profitable handlehuge amounts of data and in some cases when doing computation of preparing financial statements, there is a likelihood of making accounting errors. Fortunately, the IT can help minimize some accounting errors that occur from omissions and commissions. According to Lim, (2013) “accounting is the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof.” From this definition of accounting there is classifying, summarizing and recording of transactions or events usually monetarily and errors are likely to be made in data classification, recording or summarizing when computations are manually conducted. Thus, the point being put forward by this author is that to have accurate financial information then IT must be implemented, because it would eliminate any possible errors that are likely to occur in manual computation. When IT is used definitely the computationwould be digital and what an accounting specialist has to is just entering data and have it summarized or computed digitally. Further, Amiri, & Amiri, (2014) adds that the application of IT has boosted the accounting functions in most organizations. Therefore, to maintain accuracy of these accounting functions like recording, which requires the reproduction of accounting books, the Information Technology needs to be applied. In nutshell, accuracy empowers the accounting functions like analyzing, summarizing, classifying and recording (Gambetta, García-Benau, & Zorio-Grima, 2016).For that matter the literature insists that organizations need to step
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