FCM Conference, Recep Pekdemir1 The Impacts of New Information Technology Developments on the Accounting Profession Recep Pekdemir, Ph.D. Professor of

FCM Conference, Recep Pekdemir 1

The Impacts of New Information Technology Developments on the Accounting Profession

Recep Pekdemir, Ph.D.Professor of Accounting, Istanbul University

President, The Expert Accountants’ Association of Turkey



IT ? Hardware and software products,

information system operations and management processes, and the human resources and skills required to apply those products and processes to the task of information production and information system development, operation, management and control



IT has been pervasively going on in the world for decades

For the professional accountancy, competence with this technology has been an imperative



IT has been playing a vital role in supporting the activities of all organizations, profit or not profit oriented

Professional accountants have been extensively using various types of ITs

Professional accountants have been vitally playing important managerial, advisory and evaluative roles in connection with the adoption, deployment and use of various ITs by organizations of all types and sizes



Society has been expecting professional accountants accepting an engagement or occupation have the required level of competence to perform the work required



Certain IT Trends:

Powerful and inexpensive computer hardware is widely available

Powerful capabilities in numerous devices designed for personal and professional use



Certain IT Trends (cont.):

Powerful, inexpensive and relatively user-friendly software wit graphical user interfaces is widely available

New data capture and storage technologies are leading

Convergence of information and communication technologies




Mass marketing and distribution of IT products and services

Increasing use of networks to link individuals, intra-organizational units and inter-organizational units

Reduction of barriers to systems use, encouraging wider penetration of information systems into all organizations for accounting and broader management and strategic purposes




Wider penetration of ITs such as CAD/CAM, CIM, Computer Imaging Systems, Computer Integrated Audit Techniques, Executive Information Systems (EIS), Electronic Meeting Systems (EMS)

Widespread adoption of enterprise systems integrating operational and financial systems such as ERP and CRM




Increasing use of Internet for many aspects between organizations and individuals and between organizations and other organizations through electronic commerce systems

Such as on-line storefronts, markets and exchanges, EDI and electronic billing, payment and funds transfer



Nature of the Profession: The accountancy profession has been

a diverse one Professional accountants operate in

several work areas: Industry and commerce Public practice Public sector (government, state, and

other non-profit units)



Roles Taken: Professional accountants everywhere may

take a role: User of ITs Financial manager As member of a team, financial information

system’s designer Internal auditor; financially or operationally External auditor External advisor (consultant, accountant,

tax practitioner, insolvency practitioner)



Challenges to professional accountants:

ITs have been affecting the way in which organizations are structured, managed and operated

ITs have been changing the nature and economics of accounting activity

ITs have been changing the competitive environment in which professional accountants participate



Opportunities for professional accountants:

Information creation and information system design

Information system management and control Information system evaluation



Conclusion: To cope with the challenges and to get

benefits from the new opportunities, IT education for the accounting profession should not be neglected

So that both the professional accountants and the prospective professional accountants can gain the competence required.



Conclusion (cont.): Accounting curriculum for the professional

accountants should cover all IT aspects Pre-qualification requirements should be

dealt with IT IT knowledge should be evaluated for

entering the profession Post-qualification should be dealt with IT So, professional accountancy should go on

at the same speed of IT



Thanks Questions...

Documents

FCM Conference, Recep Pekdemir1 The Impacts of New Information Technology Developments on the Accounting Profession Recep Pekdemir, Ph.D. Professor of