The Impacts of New Information Technology Developments on the Accounting Profession

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The Impacts of New Information Technology
Developments on the Accounting Profession

• Recep Pekdemir, Ph.D.
• Professor of Accounting, Istanbul University
• President, The Expert Accountants Association of
  Turkey

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The Impacts of New Information Technology
Developments on the Accounting Profession

• IT ?
• Hardware and software products, information
  system operations and management processes, and
  the human resources and skills required to apply
  those products and processes to the task of
  information production and information system
  development, operation, management and control

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The Impacts of New Information Technology
Developments on the Accounting Profession

• IT has been pervasively going on in the world for
  decades
• For the professional accountancy, competence with
  this technology has been an imperative

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The Impacts of New Information Technology
Developments on the Accounting Profession

• IT has been playing a vital role in supporting
  the activities of all organizations, profit or
  not profit oriented
• Professional accountants have been extensively
  using various types of ITs
• Professional accountants have been vitally
  playing important managerial, advisory and
  evaluative roles in connection with the adoption,
  deployment and use of various ITs by
  organizations of all types and sizes

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The Impacts of New Information Technology
Developments on the Accounting Profession

• Society has been expecting professional
  accountants accepting an engagement or occupation
  have the required level of competence to perform
  the work required

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The Impacts of New Information Technology
Developments on the Accounting Profession

• Certain IT Trends
• Powerful and inexpensive computer hardware is
  widely available
• Powerful capabilities in numerous devices
  designed for personal and professional use

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The Impacts of New Information Technology
Developments on the Accounting Profession

• Certain IT Trends (cont.)
• Powerful, inexpensive and relatively
  user-friendly software wit graphical user
  interfaces is widely available
• New data capture and storage technologies are
  leading
• Convergence of information and communication
  technologies

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The Impacts of New Information Technology
Developments on the Accounting Profession

• Certain IT Trends (cont.)
• Mass marketing and distribution of IT products
  and services
• Increasing use of networks to link individuals,
  intra-organizational units and inter-organizationa
  l units
• Reduction of barriers to systems use, encouraging
  wider penetration of information systems into all
  organizations for accounting and broader
  management and strategic purposes

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The Impacts of New Information Technology
Developments on the Accounting Profession

• Certain IT Trends (cont.)
• Wider penetration of ITs such as CAD/CAM, CIM,
  Computer Imaging Systems, Computer Integrated
  Audit Techniques, Executive Information Systems
  (EIS), Electronic Meeting Systems (EMS)
• Widespread adoption of enterprise systems
  integrating operational and financial systems
  such as ERP and CRM

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The Impacts of New Information Technology
Developments on the Accounting Profession

• Certain IT Trends (cont.)
• Increasing use of Internet for many aspects
  between organizations and individuals and between
  organizations and other organizations through
  electronic commerce systems
• Such as on-line storefronts, markets and
  exchanges, EDI and electronic billing, payment
  and funds transfer

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The Impacts of New Information Technology
Developments on the Accounting Profession

• Nature of the Profession
• The accountancy profession has been a diverse one
• Professional accountants operate in several work
  areas
• Industry and commerce
• Public practice
• Public sector (government, state, and other
  non-profit units)

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The Impacts of New Information Technology
Developments on the Accounting Profession

• Roles Taken
• Professional accountants everywhere may take a
  role
• User of ITs
• Financial manager
• As member of a team, financial information
  systems designer
• Internal auditor financially or operationally
• External auditor
• External advisor (consultant, accountant, tax
  practitioner, insolvency practitioner)

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The Impacts of New Information Technology
Developments on the Accounting Profession

• Challenges to professional accountants
• ITs have been affecting the way in which
  organizations are structured, managed and
  operated
• ITs have been changing the nature and economics
  of accounting activity
• ITs have been changing the competitive
  environment in which professional accountants
  participate

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The Impacts of New Information Technology
Developments on the Accounting Profession

• Opportunities for professional accountants
• Information creation and information system
  design
• Information system management and control
• Information system evaluation

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The Impacts of New Information Technology
Developments on the Accounting Profession

• Conclusion
• To cope with the challenges and to get benefits
  from the new opportunities, IT education for the
  accounting profession should not be neglected
• So that both the professional accountants and the
  prospective professional accountants can gain the
  competence required.

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The Impacts of New Information Technology
Developments on the Accounting Profession

• Conclusion (cont.)
• Accounting curriculum for the professional
  accountants should cover all IT aspects
• Pre-qualification requirements should be dealt
  with IT
• IT knowledge should be evaluated for entering the
  profession
• Post-qualification should be dealt with IT
• So, professional accountancy should go on at the
  same speed of IT

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The Impacts of New Information Technology
Developments on the Accounting Profession

• Thanks
• Questions...