CHANGES BEING INTRODUCED INTO THE ACCOUNTING PROFESSION BY TECHNOLOGY IN THE 1990S
What is described as a progressive surge of technological innovation is in the process of transforming the profession of accounting. Unfortunately, many professional accountants have yet to recognize the significance of technical innovation to the profession. Technological innovation, however, is one of the principal phenomena that will change the profession to a significant extent by the year 2000. Those accountants who choose not to integrate technological innovation into their practices inevitably will be left by the wayside. This research examines some of the more significant changes that technological is either in the process of introducing or is expected to introduce into the accounting profession by the year 2000.
A major technological innovation that is beginning to affect the way in which accounting is practiced is electronic data interchange (EDI). EDI lowers substantially the cost and time associated with the transfer of information between professional accountants and clients. In some companies, EDI is expected to reduce the role of the internal accounting function by transferring functions to certified public accounting (CPA) firms. Data communication networks (discussed in a later section of this research) are essential to the success of the application of EDI technology. Some managerial decisions related to the use of EDI will also involve the practice of outsourcing (also discussed in a later section of this research). One problem that may be encountered in the application of EDI technology are laws in some jurisdictions that do not consider non paper documents to be legally binding.
The incorporation of technological innovation into the practice of accounting is expected to improve productivity within the profession at the rate of 1.5 percent per year. As multimedia technology comes on line in the accounting professio...