CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
The advent of technological advancements has ushered in a transformative era across various industries, and the field of accounting is no exception. In recent years, rapid strides in technology have significantly reshaped the landscape of accounting practices, revolutionizing how financial information is processed, analyzed, and reported. The integration of advanced technologies, such as artificial intelligence, machine learning, and blockchain, has brought about unprecedented changes in the accounting profession, influencing everything from data entry to financial analysis. As a result, professionals in the accounting domain are compelled to adapt and embrace these technological shifts to stay relevant and effectively meet the evolving demands of the business environment. Brynjolfsson, E., & McAfee, A. (2014).
One of the key areas where technology has made a profound impact is in automating routine and time-consuming tasks. The implementation of software solutions for tasks like data entry, reconciliations, and bookkeeping has not only increased efficiency but has also allowed accounting professionals to redirect their focus towards more strategic and value-added activities. Additionally, the rise of cloud computing has facilitated seamless collaboration and real-time access to financial data, enabling accountants to work remotely and enhancing the overall flexibility of their roles. These changes, driven by technological advancements, are reshaping the traditional roles of accountants, requiring them to develop new skills and competencies. Hopwood, A. G., Urcan, O., & Zhang, X. J. (2019).
Furthermore, the utilization of data analytics tools in accounting has opened up new avenues for extracting meaningful insights from large datasets. Accountants can now harness the power of big data to identify trends, predict financial outcomes, and make informed strategic decisions. This analytical capability not only enhances the quality of financial reporting but also positions accountants as strategic partners within organizations, contributing valuable insights to guide business decisions. The integration of technology in accounting is a paradigm shift that not only streamlines operational processes but also elevates the profession's role in shaping organizational strategies. Kogan, A., & Wall Street Journal. (2019).Top of FormBottom of Form
1.2 Statement of the ProblemTop of FormBottom of Form
The rapid advancement of technology has ushered in a paradigm shift in the accounting profession, presenting both opportunities and challenges. As organizations increasingly integrate cutting-edge technologies like artificial intelligence, machine learning, and blockchain into their financial processes, it becomes imperative to critically assess the implications of these changes on the accounting profession. The statement of the problem revolves around understanding the extent to which technological advancements are reshaping traditional accounting roles, the challenges and disruptions faced by accounting professionals in adapting to these changes, and the overall impact on the accuracy, reliability, and security of financial information. Furthermore, it is crucial to explore the potential risks associated with the reliance on technology in accounting practices, such as issues related to data privacy, cybersecurity threats, and the potential obsolescence of certain skill sets. Addressing these concerns is essential for fostering a comprehensive understanding of the impact of technology on the accounting profession and for developing strategies to ensure the continued effectiveness and integrity of financial reporting in this rapidly evolving technological landscape.
1.3 Objectives of the Study
The main objective of the study is to examine impact of technology advancement on accounting profession. Specific objectives of the study are:
- 1. Assess the impact of automation on the job displacement and skill requirements of accountants.
- 2. Evaluate the influence of technology on the efficiency and accuracy of accounting processes.
- Explore the emerging ethical and regulatory challenges arising from the use of technology in accounting.
1.4 Research Questions
To guide the study and achieve the objectives of the study, the following research questions were formulated:
- To what extent has automation replaced traditional accounting tasks, and what new skills are in demand for accountants to remain competitive in the job market?
- How have technologies such as cloud-based accounting software, artificial intelligence, and blockchain impacted the efficiency and speed of accounting processes?
- What are the potential ethical issues surrounding the use of artificial intelligence in accounting, such as bias in algorithms and transparency of decision-making?
1.5 Research Hypothesis
The following research hypothesis was developed and tested for the study:
Ho: There is no statistical significant relationship between technology advancement and accounting profession.
1.6 Significance of the Study
The study is important for many reasons. The following are the major stakeholders this paper through its practical and theoretical implications and findings will be of great significance:
Firstly, the paper will benefit major stakeholders and policy makers in the accounting sector. The various analysis, findings and discussions outlined in this paper will serve as a guide in enabling major positive changes in the industry and sub-sectors.
Secondly, the paper is also beneficial to the organizations used for the research. Since first hand data was gotten and analysed from the organization, they stand a chance to benefit directly from the findings of the study in respect to their various organizations. These findings will fast track growth and enable productivity in the organisations used as a case study.
Finally, the paper will serve as a guide to other researchers willing to research further into the subject matter. Through the conclusions, limitations and gaps identified in the subject matter, other student and independent researchers can have a well laid foundation to conduct further studies.
1.7 Scope of the Study
The study is delimited to University of Uyo Accounting students. Findings and recommendations from the study reflects the views and opinions of respondents sampled in the area. It may not reflect the entire picture in the population.
1.8 Limitations of the Study
The major limitations of the research study are time, financial constraints and delays from respondents. The researcher had difficulties combining lectures with field work. Financial constraints in form of getting adequate funds and sponsors to print questionnaires, hold Focus group discussions and logistics was recorded. Finally, respondents were a bit reluctant in filling questionnaires and submitting them on time. This delayed the project work a bit.
1.9 Organization of the Study
The study is made up of five (5) Chapters. Chapter one of the study gives a general introduction to the subject matter, background to the problem as well as a detailed problem statement of the research. This chapter also sets the objectives of the paper in motion detailing out the significance and scope of the paper.
Chapter Two of the paper entails the review of related literature with regards to corporate governance and integrated reporting. This chapter outlines the conceptual reviews, theoretical reviews and empirical reviews of the study.
Chapter Three centers on the methodologies applied in the study. A more detailed explanation of the research design, population of the study, sample size and technique, data collection method and analysis is discussed in this chapter.
Chapter Four highlights data analysis and interpretation giving the readers a thorough room for the discussion of the practical and theoretical implications of data analyzed in the study.
Chapter Five outlines the findings, conclusions and recommendations of the study. Based on objectives set out, the researcher concludes the paper by answering all research questions set out in the study.
