Question

Describe 3 advantages and 3 disadvantages of the use of the emerging technology in the accounting profession. For the advantages, you should describe how/why these are advantages to the accounting profession and for the disadvantages, you should describe why they are disadvantages, how serious these disadvantages are and whether there are any ways to overcome these disadvantages

Answer 1

Solution:

Advantage of Advancement of Technology in Accounting:

1.Increased Management Efficiency: As accounting with the help of emerging technology able to supply regular and accurate information for decision making. This also helps in making budgeted in a more attractive and understandable way.

2. Automation leads to Save Time: With the help of the technology accounts team able to automate many time-consuming tasks. This helps to save time and put move time on productive work and contribute more to organizations and give time to their own learning.

3. Less Prone to Human error like clerical error and other unintended errors. This helps to provide a more accurate and reliable set of financial statements to all stakeholders.

Disadvantage:

1. Security issues: As the data is more in non-physical form in place of traditional paper-based make important information and data More Prone to theft and manipulation.  

2. Loss of Jobs in the Accounting field: As automation requires fewer people to engage in the whole process make the problem of job loss.

3. Inadequate availability of Skilled labor: As the new technologies emerges with time, demand for the skilled employee who is able to work with such technology is required more. This make a constraint over the availability of skilled employee.

How Serious these problems are

The answer is that problems are really serious like problem data theft or cyber-attack on company confidential information make the company more vulnerable. Similar way, another problem poses a serious threat to the livelihood of people.

The solution to the above disadvantage or problems is as follows:

1. Proper information technology security should be installed in the company. Ther should be independent Information system Audit conducted at regular intervals to reduce the chances of fraud and theft of data.

2. On the job training and frequent short term knowledge enhancement courses for the employee. This help them meet the current requirement and get ready for future job responsibilities.