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The Emergence of Technology - PDF

Added on - 31 May 2021

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LITERATURE REVIEW1Literature ReviewAuthor’s NameInstitutional AffiliationDate
LITERATURE REVIEW2Literature 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 mostaccounting systems rely on IT to carry out their operations. Information Technology, largelydeals with the application of telecommunications equipment and computer applications toretrieve, manipulate, retrieve and transmit data. Accounting is complex, and there is a highlikelihood of accounting specialists to make various mistakes when performing their calculationsmanually without the input of IT. However, the accounting spectrum has changed for the bettersince the application of IT came into force. Businesses in the modern world rely heavily on IT inaccounting to manage their operations. Ideally, this literature review is more focused on the useof IT in accounting.Lim, (2013) believes that the use of IT enhances speed in computation. Accounting deals withfigures and which need to be calculated to determine the correct position of financial data of anyKuwaitian company. Business transactions require cash flows which in most cases need speedycomputation which can be offered by IT. Also, the large corporation dealing huge financial datacan only have its data transmitted, retrieved or measured speedily if there is of informationtechnology. Furthermore, to carry out financial reporting within a short period IT must be inplace. 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 qualitativeinformation they analyzed from the research site estimate that productivity increasedsignificantly following IT implementation. From the reasoning of these authors, it is apparentthat IT improves the activities of a company, which then results in productivity. Therefore, if the
LITERATURE REVIEW3IT implementation enhances speed in computations, in all probability it contributes to increasedperformance.Besides, from the literature it has also come out that the use IT in accounting enhancesaccurateness specifically in computation. In the literature of Lim, (2013) the aspect ofaccurateness fundamentally came out. Organizations, whether profitable or non-profitable handlehuge amounts of data and in some cases when doing computation of preparing financialstatements, there is a likelihood of making accounting errors. Fortunately, the IT can helpminimize some accounting errors that occur from omissions and commissions. According toLim, (2013) “accounting is the art of recording, classifying and summarizing in a significantmanner and in terms of money, transactions and events which are, in part at least, of financialcharacter, and interpreting the results thereof.” From this definition of accounting there isclassifying, summarizing and recording of transactions or events usually monetarily and errorsare likely to be made in data classification, recording or summarizing when computations aremanually conducted. Thus, the point being put forward by this author is that to have accuratefinancial information then IT must be implemented, because it would eliminate any possibleerrors 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 itsummarized or computed digitally. Further,Amiri, & Amiri, (2014) adds that the application ofIT has boosted the accounting functions in most organizations. Therefore, to maintain accuracyof these accounting functions like recording, which requires the reproduction of accountingbooks, the Information Technology needs to be applied. In nutshell, accuracy empowers theaccounting 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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