The Impact of Developing Information Systems on Business Accounting

This report examines the profound impact of developing information systems on business accounting practices. It highlights the shift towards digital business, emphasizing the importance of adopting appropriate technologies to leverage opportunities and meet challenges posed by rapid technological changes. The report discusses the influence of email and Excel, as well as the critical need for accountants to understand and effectively use new software, financial models, and integrated ERP systems. It also addresses the increasing significance of cyber security, data breach notification laws, and the need for continuous professional development to enhance auditors' skills. The report stresses the importance of adapting to these changes to ensure effective audit conduct and the fulfillment of accounting responsibilities in a technology-driven environment. The report also highlights the importance of understanding and managing cyber risks to reduce the severity and frequency of breaches.

Running head: CONTEMPORARY ACCOUNTING PRACTICE
Contemporary accounting practice
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1CONTEMPORARY ACCOUNTING PRACTICE
Impact of developing information systems on business accounting practices
Journey to the digital business is the major theme highlighted by Gartner. Gartner argued
that as the companies set out journeys towards digital businesses, recognizing and using right
technologies at appropriate time is critical. If the organizations get it right, the accounting
practices and the clients will leverage the opportunities and will be able to meet the challenges
that will be presented by pervasiveness and pace with regard to the technological changes. For
instance, usage of emails for the purpose of communication and excel for the purpose of
financial and accounting reporting have an impact on the accounting profession (Schaltegger &
Burritt, 2017).
Australian businesses are warned that they are not required to keep quite regarding the
cyber security breach after the mandating laws have been passed by Senate regarding the
disclosures. As per the Notifiable Data Breaches Bill that is passed by Senate, any company
which is accountable to Privacy Act is required to inform Australian Information Commissioner
and the members of the public if any data has been compromised. Implications of data breach are
financially crippling and may lead to severe damages to reputation. Hence, the management shall
proactively act for managing the cyber risks for reducing severity and frequency of the breach
(Nuhu, Baird & Appuhami, 2016).
Understanding of new software and the other financial and business models are required
if practicing by the accountants are aimed to effective audit conduct and discharging of the
responsibilities. Continuous professional education and development in this aspect is required for
the auditors. Further, the accountants shall improve the understanding and practical ability for
using the leverage technology. For instance, integrated ERP (enterprise resource planning) with

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virtual access through mobile devices and communication through the social media is
fundamental aspects for practice (Raynard, 2017).

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Reference
Nuhu, N. A., Baird, K., & Appuhami, R. (2016). The association between the use of
management accounting practices with organizational change and organizational
performance. In Advances in Management Accounting (pp. 67-98). Emerald Group
Publishing Limited.
Raynard, P. (2017). accounting works: a comparative review of contemporary approaches to
social and ethical accounting. In Tomorrow’s History (pp. 161-171). Routledge.
Schaltegger, S., & Burritt, R. (2017). Contemporary environmental accounting: issues, concepts
and practice. Routledge.