Question

what are the opportunities and threats that emerge for accountants and auditors from big data and other development in industrial revolution 4.0

Answer 1

Opportunities

Accounting is one of the fields taking the lead in information technology (IT) application. Big data technologies enable faster accounting practices and data access over a short period of time.

Industry 4.0 will greatly affect Accounting and auditing businesses. It would provide tools, helping them to not only improve service quality, but also expand their market to other countries thanks to ease of online communications.

Over the next three to ten years, smart systems and software are forecast to automate complicated processes like finalising financial agreements, and support outsourcing trends.

Sharing experience from other countries, Narayanan Vaidyanathan, head of Business Insights at the London-based Association of Chartered Certified Accountants, said cloud computing is widely applied in accounting in many countries since it supports access to information from anywhere. It helps businesses boost the scale of their services regardless of whether their IT systems can keep up with the expansion.

He called on businesses to partner with prestigious cloud storage providers in order to steer clear of technological problems.

Threats

The biggest challenges facing the sectors include the need for personnel with IT skills and the big financial investments. While it is more difficult to control accounting data, competition in the field is increasingly fierce.


The Industry 4.0 does however pose some major security challenges, especially those regarding information about management accounting, payments, and investment activities. As such, it requires the financial system to be more responsible for the safety and privacy of accounting information, he added.

To capitalise on the advantages and mitigate any negative impacts from the Industry 4.0, it is necessary to reform accounting processes, from collecting to handling, to importing and exporting data.