Accounting Profession and Industrial Revolution Era 4.0: Opportunity or Threat?

Ismi Solikhatun; Ratna Candra Sari; Lisa Nurfatmawati

doi:10.26675/jabe.v7i2.17350

Accounting Profession and Industrial Revolution Era 4.0: Opportunity or Threat?

Ismi Solikhatun, Ratna Candra Sari, Lisa Nurfatmawati

Abstract

The industrial revolution era 4.0 has changed the manual-based to technology-based systems. The automation of financial system in business has shifted the accounting profession. This study aimed to evaluate the impact of industrial revolution 4.0 era whether as opportunity or threat faced by accountant. This study provided a perspective of industrial revolution 4.0 towards the accounting profession and the existing opportunities and threats. This systematic review research used a stage model previously developed by Chitu Okoli. This study used the related articles from various journals. The industrial revolution offers users to possibly change the data and information and companies to become more effective and efficient. Industrial revolution has impacted the number of workers due to the automation in accounting activities. On the other hand, industrial revolution provides various job opportunities in accounting profession. The development of technology still cannot replace the role of accountants, because humans are equipped with emotional intelligence unlike technology. Therefore, various types of technology used in industrial revolution era 4.0 still need the involvement of humans. Anyone with special Accounting expertise and competence will have these opportunities. This study is expected to provide contributions related to the views on opportunities and challenges for the profession of accountants in industrial revolution era 4.0. This study possibly encourages accountants to improve their skills and professionalism, especially on the accounting systems which cannot be completed by machince and still require the involvement of humans.

Keywords

accounting profession; industrial revolution era 4.0; opportunity; threat

Full Text:

PDF

References

Adriana, P., Amalia, R., & Utami, K. (2020). Accounting Ethics Education in the Industrial Revolution 4.0: An Educators Perspective. 1st Annual Management, Business and Economic Conference (AMBEC 2019) Accounting, 136, 21–25. https://doi.org/10.2991/aebmr.k.200415.005

Akhter, A., & Sultana, R. (2018). Sustainability of Accounting Profession at the Age of Fourth Industrial Revolution. International Journal Of Accounting and Financial Reporting, 8(4), 139–158. https://doi.org/10.5296/ijafr.v8i4.13689

Ananiadou, K., & Claro, M. (2009). 21st century skills and competences for new millennium learners in OECD countries. OECD Education Working Papers, (41), 33. Retrieved from http://dx.doi.org/10.1787/218525261154

Andriani, D., & Nugraha, N. (2018). Spending habits and financial literacy based on gender on employees. IOP Conference Series: Materials Science and Engineering, 407(1), 1–6. https://doi.org/10.1088/1757-899X/407/1/012089

Arnaboldi, M., Busco, C., & Cuganesan, S. (2017). Accounting, accountability, social media and big data: revolution or hype? Accounting, Auditing and Accountability Journal, 30(4), 762–776. https://doi.org/10.1108/AAAJ-03-2017-2880

Bennett, B., Bradbury, M., & Prangnell, H. (2006). Rules, principles and judgments in accounting standards. Abacus, 42(2), 189–204. https://doi.org/10.1111/j.1467-6281.2006.00197.x

Bose, R. (2002). Customer relationship management: Key components for IT success. Industrial Management and Data Systems, 102(1–2), 89–97. https://doi.org/10.1108/02635570210419636

Bruns Jr., W. J. (1968). Accounting Information and Decision-Making: Some Behavioral Hypotheses. The Accounting Review, 43(3), 469–480. Retrieved from http://libaccess.mcmaster.ca.libaccess.lib.mcmaster.ca/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=4496246&site=ehost-live&scope=site

Burritt, R., & Christ, K. (2016). Industry 4.0 and environmental accounting: a new revolution? Asian Journal of Sustainability and Social Responsibility, 1(1), 23–38. https://doi.org/10.1186/s41180-016-0007-y

Daugherty, P. R., & Wilson, H. J. (2018). Starting Imagining A Future of Human + Machine. Harvard: Harvard Business Press.

Drath, R., & Horch, A. (2014). Industrie 4.0: Hit or Hype? IEE Industrial Electronics Magazine, 8(2), 56–58. https://doi.org/10.1109/MIE.2014.2312079

Frey, C. B., & Osborne, M. (2013). THE FUTURE OF EMPLOYMENT. Oxford.

Gabbin, A. L. (2019). Warning Signs about the Future Supply of Accounting Graduates. Retrieved December 3, 2020, from www.aicpa.org website: https://www.cpajournal.com/2019/10/11/warning-signs-about-the-future-supply-of-accounting-graduates/

Ghani, E. K., & Muhammad, K. (2019). Industry 4.0: Employers’ expectations of accounting graduates and its implications on teaching and learning practices. International Journal of Education and Practice, 7(1), 19–29. https://doi.org/10.18488/journal.61.2019.71.19.29

Gleason, N. W. (2018). Higher Education in the Era of the Fourth Industrial Revolution. In Higher Education in the Era of the Fourth Industrial Revolution. https://doi.org/10.1007/978-981-13-0194-0

Goh, C., Seow, P. S., & Pan, G. (2017). Automation and the Accounting profession. IS Chartered Accountant. Retrieved from https://ink.library.smu.edu.sg/soa_research/1640

Guthrie, J., & Parker, L. D. (2016). Whither the accounting profession, accountants and accounting researchers? Commentary and projections. Accounting, Auditing and Accountability Journal, 29(1), 2–10. https://doi.org/10.1108/AAAJ-10-2015-2263

Hart, L. (2017). How Industry 4.0 will Change Accounting? Retrieved December 13, 2020, from Journal of Accountancy website: https://www.journalofaccountancy.com/newsletters/2017/sep/industry-4-0-change-accounting.html

Hayati, S. R. (2014). Peran Perbankan Syariah terhadap pertumbuhan ekonomi Indonesia. Vol 4, 41–66. https://doi.org/https://doi.org/10.1548/idi.v4i1.1552

Holtzman, Y. (2004). The transformation of the accounting profession in the United States. From information processing to strategic business advising. Journal of Management Development, 23(10), 949–961. https://doi.org/10.1108/02621710410566856

Islam, M. (2013). Auditing in the 21st Century: Has Self-regulation Failed? ∗. 9(8), 1059–1069.

Islam, M. A. (2017). Future of Accounting Profession: Three Major Changes and Implications for Teaching and Research. In InternationalFederation ofAccountants (IFAC). Retrieved from https://www.ifac.org/knowledge-gateway/business-reporting/discussion/future-accounting-profession-three-major-changes-and

Iswanto, A. C., & Wahjono. (2019). Pengaruh Revolusi Industri 4.0 Terhadap Ilmu Akuntansi. Jurna Ilmiah INFOKAM, 1(1), 1–6.

Jackson, D., Michelson, G., & Munir, R. (2020). the Impact of Technology on the Desired Skills of Early Career Accountants. CPA Australia. Retrieved from https://www.researchgate.net/profile/Grant-Michelson/publication/344333920_The_impact_of_technology_on_the_desired_skills_of_early_career_accountants/links/5f693de8458515b7cf46928a/The-impact-of-technology-on-the-desired-skills-of-early-career-accountants

Jakubowski, S. T., Chao, P., Huh, S. K., & Maheshwari, S. (2002). A cross-country comparison of the codes of professional conduct of certified/chartered accountants. Journal of Business Ethics, 35(2), 111–129. https://doi.org/10.1023/A:1013011120754

Kartowagiran, B., Suyanta, Hamdi, S., Jaedun, A., Ahman, Rusijono, & Laliyo, L. A. R. (2020). Development of web-based application for teacher candidate competence instruments: Preparing professional teachers in the IR 4.0 era. European Journal of Educational Research, 9(4), 1749–1763. https://doi.org/10.12973/eu-jer.9.4.1749

Kokina, J., & Blanchette, S. (2019). Early evidence of digital labor in accounting: Innovation with Robotic Process Automation. International Journal of Accounting Information Systems, 35(xxxx), 100431. https://doi.org/10.1016/j.accinf.2019.100431

Kruskopf, S., Lobbas, C., Meinander, H., & Söderling, K. (2019). Digital Accounting: Opportunities, Threats and the Human Factor. ACRN Oxford Journal of Finance and Risk Perspectives, 8, 1–15.

Lasi, H., & Kemper, H.-G. (2020). Industry 4.0. Business and Information Systems Engineering, 6(4), 239–242. https://doi.org/10.1007/s12599-014-0334-4

Linder, J. C. (2004). Transformational Outsourcing. MIT Sloan Management Review, 45(2), 52–58.

Lovell, H., Bebbington, J., Larrinaga, C., & Sales de Aguiar, T. R. (2013). Putting carbon markets into practice: A case study of financial accounting in Europe. Environment and Planning C: Government and Policy, 31(4), 741–757. https://doi.org/10.1068/c1275

Lukman, H., & Irisha, T. (2020). The Effect of Creative Accounting Practices with Statutory Auditor as Mediation, and Accountant Ethics Standards on the Reliability of Financial Statements. 478(Ticash), 1023–1029. https://doi.org/10.2991/assehr.k.201209.162

Mintz, S. M. (2011). Ethics, professional judgment, and principles-based decision making under IFRS. The CPA Journal, 81(1), 68.

Mohamed, M. (2018). Challenges and benefits of industry 4.0: An overview. International Journal of Supply and Operations Management, 5(3), 256–265.

Moll, J., & Yigitbasioglu, O. (2019). The Role of Internet-Related Technologies in Shaping the Work of Accountants : New Directions for Accounting Research. The British Accounting Review, 51(1), 1–20. https://doi.org/10.1016/j.bar.2019.04.002

Morrar, R., Arman, H., & Mousa Saeed. (2017). The Fourth Industrial Revolution (Industry 4.0): A Social Innovation Perspective. 7(11), 15–35.

Mosteanu, N. R., & Faccia, A. (2020). Digital systems and new challenges of financial management – fintech, XBRL, blockchain and cryptocurrencies. Quality - Access to Success, 21(174), 159–166.

Nielsen, C., & Madsen, M. T. (2009). Discourses of transparency in the intellectual capital reporting debate: Moving from generic reporting models to management defined information. Critical Perspectives on Accounting, 20(7), 847–854. https://doi.org/10.1016/j.cpa.2008.09.007

Nuryantini, A. Y., & Mahen, E. C. S. (2018). One Dimensional Motion with ICT Based Learning: Improving the Physics Teacher Candidates’ Science Process Skills and Attitudes. Jurnal Ilmiah Pendidikan Fisika Al-Biruni, 7(2), 117–128. https://doi.org/10.24042/jipfalbiruni.v7i2.2901

O’Dwyer, B., & Unerman, J. (2020). Shifting the focus of sustainability accounting from impacts to risks and dependencies: researching the transformative potential of TCFD reporting. Accounting, Auditing and Accountability Journal, 33(5), 1113–1141. https://doi.org/10.1108/AAAJ-02-2020-4445

Okoli, C. (2015). A guide to conducting a standalone systematic literature review. Communications of the Association for Information Systems, 37(1), 879–910. https://doi.org/10.17705/1cais.03743

Pan, G., & Seow, P. S. (2016). Preparing accounting graduates for digital revolution: A critical review of information technology competencies and skills development. Journal of Education for Business, 91(3), 166–175. https://doi.org/10.1080/08832323.2016.1145622

Popkova, E. G., Ragulina, Y. V., & Bogovid, A. V. (2018). Industry 4.0: Industrial Revolution of the 21st century. London: Springer.

Retnaningdyastuti, M. T. S. R. (2018). Tantangan dan Peluang Guru Pendidikan Agama Islam di Era Globalisasi. Strategi Pelayanan Bimbingan Dan Konseling Di Era Disrupsi, 7(1), 6–12. https://doi.org/10.30984/jii.v7i1.605

Richins, G., Stapleton, A., Stratopoulos, T. ., & Wong, C. (2017). Big Data Analytics: Opportunity or Threats for the Accounting Profession. Journal of Information Systems, 31(3), 63–79. https://doi.org/10.33516/maj.v54i5.44-46p

Rîndașu, S.-M. (2017). Emerging information technologies in accounting and related security risks – what is the impact on the Romanian accounting profession. Journal of Accounting and Management Information Systems, 16(4), 581–609. https://doi.org/10.24818/jamis.2017.04008

Silva, J. da R., Tommasetti, R., Gomes, M. Z., & Macedo, M. A. da S. (2020). Accountants’ IT responsibilities and competencies from a student perspective. Higher Education, Skills and Work-Based Learning. https://doi.org/10.1108/HESWBL-02-2020-0028

Sinurat, M., Ilham, R. N., & Cen, C. C. (2021). Asetpedia.id as a Start-Up Based Technology Benchmarking Innovation for Beginning Companies in the North Sumatera Region. Proceedings of the International Conference on Strategic Issues of Economics, Business and, Education (ICoSIEBE 2020), 163(ICoSIEBE 2020), 109–114. https://doi.org/10.2991/aebmr.k.210220.020

Sledgianowski, D., Gomaa, M., & Tan, C. (2017). Toward integration of Big Data, technology and information systems competencies into the accounting curriculum. Journal of Accounting Education, 38, 81–93. https://doi.org/10.1016/j.jaccedu.2016.12.008

Sumarna, A. D. (2020). Akuntan dalam Industri 4.0 : Studi Kasus Kantor Jasa Akuntan di Wilayah Kepulauan Riau. Jurnal Krisna Kumpulan Riset Akuntansi, 11(2), 100–109.

Weber, J. (2020). CPAS as Data Analysts : How Louisiana Accountants Respond to Data-Driven Business Paradigms. Liberty University.

Zhou, K. (2015). Industry 4.0: Towards Future Industrial Opportunities and Challenges. 2147–2152.

DOI: http://dx.doi.org/10.26675/jabe.v7i2.17350