Topic: Discuss the impact of technology on the accounting profession in relation to the point that “Accounting is moving to information management” considering whether the impact has increased, whether greater changes in technology have taken place which has impacted the point raised since 1999, and what are the expected future effects of technology.
One of the impacts that the technology had on the Accounting profession was related to education needs. Upgrading the skills and practices seemed crucial to make pace with the changing world so that the accounting profession remains in the race against the competitors, as summed up by Jordan (1999).
A movement had started in education ...view middle of the document...
Other than a college degree and 150 semester hours of education, a two days stringent national test and some experience requirements are mandatory for a qualified CPA (ORCPA, 2009).
New opportunities have got created for CPAs’ to manage the vast pool of information to offer customized services to businesses and individuals. Due to greater changes in technology, they have become systems analysts and systems security experts. Demand for data collection, analysis and evaluation skills has risen. In future, the demand for their services is going to increase tremendously as more and more businesses are accepting technology as the medium of doing business. In their new role as CPA’s, they are supposed to follow a strict code of professional behavior showing independence, objectivity and integrity in accounting reviews (Shafer, 1998, Business Forum).
Accounting and IT Control Frameworks – a glimpse of federal initiatives
IT control frameworks have become stringent enough that whatever the size of a company, data transfers between different business groups and flows seamlessly towards company’s CEO and CFO for verification. It requires robust accounting procedures and controls. The CSO and COBiT frameworks are robust enough to create confidence in the workflow controls, and are formulated to cater to IT concerns. When systems are not robust, websites can’t bear the load of data transfer, as a result a website crashes, bringing the functions to a halt for long hours or even days. The SOX 404 verification creates faith in IT systems and databases meant for accounting procedures. It is significant to consider SEC response to framework and Final Rule as stated in Management's Reports on Internal Control Over Financial Reporting and Certification of Disclosure in Exchange Act Periodic Reports -- “We believe that each company should be afforded the flexibility to design its system of internal control over financial reporting to fit its particular circumstances." As per Securities and Exchange Commission (SEC) on the final rule, the internal control over financial reporting differs from company to company. Therefore, methods or measuring procedures are not stated in the final rules. Discussing the COSO framework on internal control over financial reporting, SEC has laid emphasis on the established control framework built by a group of organizations by following set processes and procedures, made available for audiences’ reactions (SOX-online, 2009).
Difference in terms
The meaning of terms ‘accounting’ and ‘IT auditing’ differs. An IT auditor can examine some angles of accounting within the IT department like financial issues related to IT projects or foretelling. Generally, such a...