ACCY231 Essay: IOT, AI, and Blockchain Revolution in Accounting

This essay delves into the transformative impact of IOT, AI, and Blockchain technologies on the accounting profession. It defines and explores the applications and benefits of each technology, including how IOT streamlines accounting processes, AI enhances accuracy and decision-making, and Blockchain improves efficiency and security. The essay examines the effects of these technologies on the accounting profession, including increased functionality, improved data access, and new job roles. It also analyzes the initiatives of the Big 4 accounting firms and national professional accounting bodies, discussing their communication strategies, service offerings, and development of new tools. The essay concludes by considering the skills and training needed for professionals to adapt to these changes and the development of new standards within the industry.

Running head: IOT, AI AND BLOCKCHAIN IN ACCOUNTING
IOT, AI AND BLOCKCHAIN IN ACCOUNTING
Name of the Student
Name of the University
Author note

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IOT, AI AND BLOCKCHAIN IN ACCOUNTING
It is seen that communication takes place in close silos as well in different networking
types. Artificial Intelligence has also been used in the accounting organizations. Performing
predictive analysis and hence forth enhancing the decision making process is also performed by
the technology of AI. Hence usage of AI in the industry has been increasing as well. On the
other hand block chain is focused on the transfer of assets and maintaining of ledger. These are
the main reason that Block chain has been gaining importance in the processing of the
accounting process.
Thesis Statement: IOT, AI and Blockchain will be initiating revolution in the Accounting
profession.
Preview: This essay discusses about the importance of IOT in the accounting process.
Proper description about the importance of the Ai in the field of accountancy is also performed.
Assessment of importance of block chain in the accountancy department is also described.
Proper description regarding the Initiatives of the Big 4 accounting companies will also be
described in the process. Initiatives of the national and international accounting bodies are
described as well.
IOT
Topic statement: IOT will be benefitting the accounting profession to a great extent
 Define: IOT is believed to remodel the functioning process of the accounting and billing
industry (Lafond, McAleer and Wentzel 2016). Data that are harvested are converted into
stellar strategies. Automation will be incorporated in the accounting process on
introduction of the platform of IOT in accounting section.

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IOT, AI AND BLOCKCHAIN IN ACCOUNTING
 Examples and Applications: Sage 300 is an example that is based on IOT platform. The
application that might be received on incorporating the processing of IOT in accounting
process includes the likes of Stress free and seamless accounting, increased cost and time
optimization and proper tracking of assets and inventory (Suryanto 2016).
 Benefits: IOT helps business organization to keep a track on the resources that are being
used in the process. Optimizing of cost can be made with the help of proper
understanding of the working process and style of the employees of the organization, the
time that is required in the accounting process can be decreased and hence wise the entire
process will be cost efficient as well (Kokina & Davenport 2017). Usage of RFID, which
is based on the platform of IOT can be used for tracking of assets and inventory present
in the system. This will be benefitting the entire accounting process as well.
AI
Topic Statement: AI will be beneficial in the processing of accounting.
 Define: It has been seen that different companies have been using the technology of
Artificial intelligence in the processing of accounting tasks. The main reason of using this
technology in the accounting process is that the results that are received are highly
accurate in nature (Pannu 2015). This high accuracy in the accounting process helps in
increasing accuracy in the decision making process as well.
 Examples and Applications: Botkeeper is an AI based accounting tool. The applications
of AI in accounting process includes closure procedure, procurement, documentation of
the accounts payable and receivable, performing proper audits and hence wise perform
expense management.

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IOT, AI AND BLOCKCHAIN IN ACCOUNTING
 Benefits: AI allows to dive deep into the data of clients. This ensures that the data
segmentation will be client data is performed and hence wise analyzed. This analysis of
the data ensures that AI provides an insight to the client data and helps the accounting to
team to understand the approach that should be taken up by accounting team.
Understanding and estimating a potential cash flow is one of the major aspect that is to be
considered in this case. The segments of data that are missing are also found by the AI
based tools. AI based algorithms provide a proper assessment of the routine that is to be
followed and hence wise accounting process gets benefitted. With the help of AI proper
prediction analysis can be performed (Li and Zheng 2018). This ensures that the data that
are gathered will be used for understanding the future trend. This understanding of future
trend helps in bettering the process of understand the importance of standards that are
present today and the standards that will be acting more important in the upcoming days.
Machine learning when blended with AI helps in developing proper strategies and hence
wise high level financial and strategic advice. These data segregation enhances the
processes of Accounting. This process also ensures that the entire process of accounting
gets performed in a proper manner.
Block chain
Topic statement: Blockchain helps in increasing efficiency in the accounting technology.
 Define: This technology is concerned with the maintaining of ledger as per the data that
are gathered. This ensures that data that are collected will be providing a financial
information in this process (Ye 2019).
 Examples and Applications: The major application of blockchain are reducing the errors
in the calculation section. Reduces frauds in the process of accounting.

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IOT, AI AND BLOCKCHAIN IN ACCOUNTING
 Benefits: There are several benefits that are enjoyed in the processing of the usage of the
Blockchain in accounting process. With the implementation of Blockchain, almost
negligible errors are made. Hence increase in accuracy can be estimated. In case the data
that are to be used are in the chain the calculation process will be getting enhanced.
Accounting functional process gets better. Hence reducing human error can be enjoyed.
With the help of the block chain another benefit that will be received is that proper
interacting with the accounting function and hence reducing human error will be
established (Greenman 2017). Again, it can be stated that there will be an increase in
efficiency in the accounting process. Hence better data gathering can be made. With
reduction in the errors caused due to the usage of Blockchain, the initial adaption cost
will be on a decreasing medium. Immutable characteristic of blockchain instills the fact
that the data that are present in the blockchain stays highly secured. This high security
ensures that the data that are collected will be having a proper assessment of the data that
are present in the ledger. Hence modification without proper authentication is not
possible in case of using the platform of blockchain (Appelbaum et al, 2017). The time
that is required for completion of calculation process is also reduced. The accuracy of the
entire system is high as there is least human interference. Usage of smart contracts has
been playing a major role in reducing the time that is required completion of the
calculation process. The traceability of Blockchain ensures that the time taken for
auditing decreases.
Impact of in Accounting Profession
There are both positive and negative impacts of implementing digital platforms in
accounting process. There has been an increase in functionality in the accounting process. This

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IOT, AI AND BLOCKCHAIN IN ACCOUNTING
increase in functionality has been benefitting the entire process of timeliness of the accounting
information. This process also helps in bettering of documentation of the accounts related data.
The financial reports that are generated have also been getting better and reports regarding the
profit and loss of the entire system has been more accessible by the accounting team. The reason
of this high accessibility is that the data that are generated are stored in a proper manner. This
computerized storage of the data set helps in analyzing the data in a better manner. This also acts
beneficial in the process. Hence higher data access acts as a prime impact that is caused due to
the implementation of the AI, IOT and blockchain in the accounting department. As per the
professionalism is concerned, higher accuracy in calculation has been always a need. With the
implementation of the AI, IOT and blockchain, internal checking is performed in a regular
manner. This internal checking is completely autonomous in nature. This process ensures that the
data that are calculated and stored are accurate in nature. Another major concern that is present
in the professionalism is the pace at which the entire process is performed.
With incorporation of IOT, blockchain and AI, the entire process gets faster. Individual
transaction has also been decreasing. Quicker processing time ensures that close out accounting
system will be ensuring that accounting process will be getting faster. Equity financing is also
performed in this section. Along with these positive impacts, another positive impact that is
present is that there are more job roles getting created. Maintenance of the IT tools and platforms
that are used in the process of evaluation and accounting process is required in a daily basis.
Hence wise personnel, who are well accustomed with the processing of the IT tools will be
getting hired. Hence accounting professionalism will be having a separate new job role. Another
job role of security department will be created in the process. As the data are continuously stored
and accessed, proper security team is required for maintaining the security of the data.

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IOT, AI AND BLOCKCHAIN IN ACCOUNTING
A negative impact that might be present is that there is excess dependency on the tools
that are used. Security related issues are also present in this system. As all the data are stored in
the database, the main aspect is that is to be considered is that the imposters might gain access to
the data without proper authentication.
Initiative of Big 4 Accounting Firms
 What are the initiatives?
1. Initiative of PWC:
Developing of GL.ai who have been evolving as per it has been performing audits (Shore and
Wright 2018).
2. Initiative of Delloite:
Collaboration with IBM Watson for providing cognitive technology based solution.
3. Initiative of EY:
AI has been implemented AI in auditing section.
4. Initiative of KPMG:
KMPG has built its own portfolio based on AI tools which is known as KPMG Ignite ( Fransen
and LeBaron 2019).
 Communication to clients
The entire communication process is divided in several steps. The steps are as follows: -
 Proper alignment of communications as per priorities.
 Proper definition of the critical audience will be performed as well.

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IOT, AI AND BLOCKCHAIN IN ACCOUNTING
 Proper definition of the objective will be performed as well.
 Proper defining of the critical message will be perform ed as well.
 Proper packaging of the message will be performed as well.
 Selection of the channel of delivery along with the medium will be performed in the very
next step.
 After this process feedback of the communication process will be performed as well.
Use of the services they provide clients
The services that are provided by the Big 4 accounting firm includes the like of taxation,
risk advisory, auditing, transaction advisory and actuarial services. These services provided by
the big 4 accounting organization is mainly focused on resolving issues regarding the taxation
section and hence wise there are reduction in errors that are present as per taxable income. Due
to the high efficiency in the auditing section, the main aspect that is considered is that efficiency
and the profits that the business will be making can be expected.
Are they developing new tools using these technologies, in which areas?
Yes they are developing new tools. They are developing it in the accounting areas
precisely.
Initiative of National Professional Accounting Bodies
 Include AICPA (USA), ICAEAW (UK), ACCA (UK)
1. Key initiative of AICPA are Enhancing Audit quality, Tax reform resource center, not for
a profit member section
2. Key initiative of ICAEAW are inclusion of AI, perform audit and block chain.

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3. Key initiative of ACCA is to implement machine learning, deep learning for enhancing
AI in accounting process. Skills and training needed to be provided
As the employees will not be having proper knowledge regarding the functioning process
of AI and Block chain, proper training is to be provided. This training provisioning ensures that
proper understanding of the functional process is maintained in a proper manner. With proper
training the employees will be capable of performing regular duties with higher efficiency.
International Initiatives (IFAC)
 Are new standards being developed?
Yes new skills are being developed.
 Training or skill requirements
Skills regarding usage of AI is very important. Having a basic understanding of AI
provides a benefit in understanding the functional process that is taught in the training period.
Internet of Things, Blockchain and AI have been acting as important tools in accounting
department. Acceptance rate of this technology has been very high among the global mass. It can
be said that IOT has been bringing several networks together for better assessment of the tasks
that are to be performed in the accounting business. Hence communication process gets
enhanced. The communication process gets enhanced in a manner that that there is no boundary
in the communication process. Hence the accounting process has been getting benefitted with the
introduction of Internet of Things, Blockchain and AI as communication process and accuracy is
maintained.

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References
Appelbaum, D., Kogan, A., Vasarhelyi, M. and Yan, Z., 2017. Impact of business analytics and
enterprise systems on managerial accounting. International Journal of Accounting Information
Systems, 25, pp.29-44.
Fransen, L. and LeBaron, G., 2019. Big audit firms as regulatory intermediaries in transnational
labor governance. Regulation & Governance, 13(2), pp.260-279.
Greenman, C., 2017. Exploring the impact of artificial intelligence on the accounting
profession. Journal of Research in Business, Economics and Management, 8(3), p.1451.
Kokina, J., & Davenport, T. H. (2017). The emergence of artificial intelligence: How automation
is changing auditing. Journal of Emerging Technologies in Accounting, 14(1), 115-122.
Lafond, C.A., McAleer, A.C. and Wentzel, K., 2016. Enhancing the Link between Technology
and Accounting in Introductory Courses: Evidence From Students. Journal of the Academy of
Business Education, 17.
Li, Z. and Zheng, L., 2018, September. The Impact of Artificial Intelligence on Accounting.
In 2018 4th International Conference on Social Science and Higher Education (ICSSHE 2018).
Atlantis Press.
Pannu, A., 2015. Artificial intelligence and its application in different areas. Artificial
Intelligence, 4(10), pp.79-84.
Shore, C. and Wright, S., 2018. How the Big 4 got big: Audit culture and the metamorphosis of
international accountancy firms. Critique of Anthropology, 38(3), pp.303-324.

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Suryanto, T., 2016. Dividend policy, information technology, accounting reporting to investor
reaction and fraud prevention. Journal of Economic & Management Perspectives, 10(1), p.138.
Ye, W., 2019, May. Exploring the Importance of Transformation from Financial Accounting to
Management Accounting in the Era of Artificial Intelligence. In 1st International Conference on
Business, Economics, Management Science (BEMS 2019). Atlantis Press.