International Journal of Financial Market and Corporate Finance2021, Vol. 1, No. 1, pp. 1–5

Copyright © 2021 BOHR Publisherswww.bohrpub.com

To Assess the Main Drawbacks of Advanced Technologyfor the Accounting Sphere

Teresia Nande and Nikodemus Angula

Faculty of Economics and Management Sciences, University of Namibia, Windhoek, NamibiaE-mail: ternande.tn@gmail.com; chcangula@gmail.com

Abstract. Every accountant knows that accounting is a business language and that language has undergone manychanges over the years. Dissemination in the use of information technology and the production of applications hascontributed to intense shifts in accounting firms’ Procedures as of the 1990s. From the view of accounting experts,the influence of these advances has not been adequately analysed. The general purpose of this study was there-fore to determine the effect of technological progress on the accounting sphere in Namibia. A descriptive surveydesign was used to in this study, to establish whether there exists any relationship between advanced technologyand Accounting today. The results indicate that the accelerated speed of technological progress tends to challengeconventional processes in all fields, including the accounting profession. The study also revealed that businesseshave not only embraced the revolution of advanced technology, but have also started to adopt emerging inno-vations in the form of accounting software, mobility and the creation of social media platforms. With a figure ofless than 50% IT-enabled use, it is obvious that accounting students and accountants do not know how to runaccounting information systems, while companies continually rely on technological advancements to conduct theirtasks.

Keywords: Asses, Main drawbacks, Advanced technology, Accounting sphere.

1 Introduction

Web and cloud-based digital tools are reshaping vari-ous aspects of business and education: from the way wefinance, operate and expand new and emerging businessesto the way we create, purchase and deliver products andservices. It was recommended that the structural abilityof the university be improved to adapt technology andinnovation to its own development, as well as to ensurethe training of other people in higher education and voca-tional schools. As well as elevated scale-up of successfulprojects to be a key priority, optimizing productivity andimproving the feasibility and cost-effectiveness of tech-nology and creativity adapted to growth problems. Theyhave found that the static focus of the CPA exam cre-ates a mismatch between the supply and demand of thenecessary talents. Students graduating from traditionalaccounting programs usually do not have the knowledgeand skills required by employers and this is especiallytrue of workplaces with high level adoption of automation.Therefore, a modern approach to teaching approaches and

instruction in accounting education suited to the youngergeneration characteristics is also required and desperatelyneeded.

2 Problem Statement

The rapid pace of technological change continues todisrupt traditional procedures in all spheres, includingthe accounting profession (Stimpson, 2018). According toCavanagh and Moretti (2016) Accountants in the field ofpractice and accounting are part of the linked community.It is changing the ways in which they interact and collabo-rate with, and form new working habits in, the companiesthey work with and for. This offers accountants the abil-ity to simplify and de-skill time-consuming and repetitivework and to concentrate on higher value work so that theycan improve their position as finance and business advi-sors (Anonymous 2001). New technologies are spreadingrapidly and are affecting the Namibian economy in ref-erence to regional and local development (Shaanika andIyamu 2015).

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2 Teresia Nande and Nikodemus Angula

3 Aims and Objectives

Main Objective of the study was to determine the impact ofadvanced technology on the Namibian Accounting sphere,mainly focusing on UNAM, BDO Namibia and SynergiesAccounting.

The specific objectives of study were as follows:

• To investigate new technologies and then assessingtheir implications for finance professionals and thosethey serve and support in Namibia.

• To determine to what extend information about tech-nologies and trends as they evolve can contribute tominimizing the burdens and maximizing the benefitsof advanced technology in the academic community(UNAM).

• To explore the trend of advanced technology inNamibia.

4 Methodology

Target population of this research was purely based onregistered accountants and the academic community. Theresearch will not cover the whole accounting sphere ofNamibia, but will focus on two specific entities and oneuniversity from the academic community, University ofNamibia, BDO Namibia and Synergies Accounting. It con-sisted of 10 graduates from the University and 4 Accoun-tants from the firms. Structured questionnaires were usedto collect data, as they required a lower cognitive load onthe respondent. They minimized the amount of thinkingthat the respondent required to do to accomplish the taskand made it easier for the researcher to code and interpretthe data.

5 Literature Review

Literature review covered the topics of mobility, security,accounting education and accounting software.

â Mobility

Accountants use mobile technology to drive productivityand performance improvements, get companies closer totheir customers and remain connected to them, whetherthey are in the office or on the road. As there are manybenefits of having mobility supports, but as it is said thestick has two sides, this means that mobility aids can havesome disadvantages. On the other hand, the evolution ofadvanced technology has drawbacks, for example in termsof reliance on emerging technology. Man doesn’t need toworry any more. And if the calculator is a decent invention,

man no longer makes a mental estimate, and his mind nolonger works. The loss in human resources suggests a risein unemployment. Devices may replace the human mindin certain areas. In addition the greatest challenge a stu-dent can face when shopping for a mobility device is itsprice, mobility devices are pricey, and insurance providersdo not pay the price more often than not. Another chal-lenge is the physical environment; do you visualize how aperson in a wheelchair can get to the class if there’s just astairway? In Numerous mobile apps are paired with cloudinfrastructure to provide access to advanced informationanywhere; at any time and relevant business and financeinfo. Reliable broadband networks are necessary for thedevelopment of the ever-expanding mobile eco-system.Frost (2016) showed that new technologies and devicesare costly to purchase and require ongoing maintenanceand upkeep. Stimpson (2018) demonstrated how increasedeventually escalated security needs, as portable devicesare vulnerable to security risks, especially if they containsensitive or critical business data. Finally, like most techno-logical discoveries seek to minimize human effort, whichwould mean that more work is performed by machinery.This is similar to less work for people: human beingsare becoming more extinct by the day as systems becomestreamlined and workers are being made redundant.

â Security

Frost (2016) studied that security of the accounting infor-mation in a computerized program is limited to the qualityof the program itself and the company’s security system.Security is a trade-off, a juggling act between the attackerand the defender. Unfortunately, this equilibrium is neverstatic. Technology advances impact both sides. Society isusing new technology to minimize what I call the sizeof the defect—what attackers will do—and attackers areusing new technologies to maximize it. What is notewor-thy is the contrast between how the two classes adoptemerging technology. The study revealed that a poorly pro-tected program and database leaves an opening for hackersor unauthorized personnel to access all of the company’sfinancial information. The information may then be usedfor malicious purposes that could hurt the company orthe employees if their personal financial information isaccessed. Frost (2016) recommended that in order to avoidsecurity problems; technology specialists should developa security system that protects the accounting informa-tion from both external hackers and unauthorized internalaccess. This typically includes a firewall to stop hackersand password protection for internal access restriction sheexplained further. It is not often argued that criminals canavoid targets with increased protection, although they willstill find ways to circumvent them. Acting and appearing‘legitimate’ criminals have been described as a main tool toprevent identification, even though CCTV and facial recog-nition have been deployed. Currently, we appear to bereactive in defense, and only adopt new steps in response

To Assess the Main Drawbacks of Advanced Technology for the Accounting Sphere 3

to an elevated level of defection. We’re slow to do it andmuch slower to get it right.

â Accounting Education

Challenges in accounting education are also related todevelopments in accounting education. Character fromone generation to another or commonly recognized as ayounger generation. The younger generation has receiveda great deal of recognition for its distinctive traits relativeto previous generations. One of the biggest discrepanciesis that the young are born into a society where technol-ogy is pervasive. Zhang, Dai and Vasarhelyi (2018) studiedthe impact of disruptive technologies on Accounting andAuditing Education.

â Accounting Software

Accounting Software is designed to automate much of theaccounting process. The purpose is to make accountingeasier, faster and more accurate (Collins, 1999). While thesoftware does serve its purpose, there are disadvantages torelying solely upon technology for any business’ account-ing needs. Crowder studied the disadvantages of Account-ing Software and found six factors: cost, fraud, additionalsoftware, human error, training and time. If data is notinvestigated for accurateness and fullness, the accountinginformation produced by software will lead to misconcep-tion because of all accounting data entered manually. Itis essential for organizations to educate human resourcesparticularly to access and utilize the accounting software,which engross massive price and time.

In Kotlicoff’s view (1995) it is difficult to forecast thefuture with any degree of accuracy. By holding technologyupdated as it progresses, understanding emerging inno-vations as they arise, and then evaluating their effect onfinancial practitioners and others they advise and assist,accountants will be positioned to reduce burdens and opti-mize benefits. Through that sense, the occupation willleverage technologies to eventually broaden the definitionof what it entails to be an accountant. Finance practitionersneed to identify the problems and opportunities posed bycurrent and evolving technology and also utilize their ana-lytical and problem-solving capabilities to evaluate theirfuture effect so that they can have the financial expertiserequired to direct any impacted operational and strategicbusiness decisions.

6 Discussion of Results

The pie charts below show how students and staff havefound information technology teaching to be effective intheir jobs and at the university.

The pie chart above illustrates that (64.3%) felt thatinformation technology teaching was effective within theirmajor at the university, while (35.7%) did not and none

Figure 1. Effectiveness of IT teaching within major at theUniversity.

Figure 2. Effectiveness of IT teaching outside major at theUniversity.

of them found it extremely effective. The fact that none ofthe participants considered information technology teach-ing to be extremely effective obviously demonstrates thatthe university and the companies have struggled to doso when it comes to IT teaching. Technology is probablythe greatest force influencing today’s learning environ-ment. Many school and work districts are promoting anexpanded level of technology in schools and workplaces bysupplying hardware such as tablets and laptops, improv-ing internet access, and introducing initiatives intended topromote computer literacy for lecturers, students, staff andemployers.

The pie chart above illustrates that (85.7%) felt thatinformation technology teaching was useful outside theirmajor at the university; while (14.3%) did not and none ofthem found it extremely effective. Early accounts of tech-nological progress have centered much of their focus onthe provision of computers in lecture halls. Certainly, themost basic step towards successful development advancedtechnology is full coverage to the facilities needed for theapplication of technology skills development. If computerlab time is limited to one hour a week the continued use ofeducation technology is not practical.

The pie chart above illustrates that (66.7%) of respon-dents considered information technology teaching to bevery effective within their work environment, while(16.7%) did not find it effective and the remaining (16.7%)found it to be extremely effective. The fact that part ofthe participants considered IT teaching to be extremely

4 Teresia Nande and Nikodemus Angula

Figure 3. Effectiveness of IT teaching within the work place.

Figure 4. Experience with technology at the University.

Figure 5. Satisfaction with the available technological resources.

effective at work, which is not the case at the university,suggests that employers did much better than educa-tors. The first-order obstacles to effective introduction oftechnology into teaching are external considerations fortechnology-implementing students. External hurdles needto be resolved at the institutional level, and improvementsare generally progressive.

The pie charts below demonstrate the percentage ofhow students and staff found information technologyteaching at the university to be satisfactory.

The pie chart above indicates that (28.6%) had a neutralimpression that their technological experience at the uni-versity was satisfactory; (21.4%) were dissatisfied, (7.1%)were very satisfied, (42.9%) were satisfied and none werevery dissatisfied. The fact that only a limited number ofparticipants were really pleased with their technical expe-rience at the university suggests that they were unstable.

Computer connectivity makes it incredibly difficult forteachers to incorporate technologies into current lessonsschedules.

Figure 6. Satisfaction with the opportunities for profes-sional advancement.

Figure 7. Create a functioning web page with Microsoft Word.

The pie chart above indicates that (28.6%) had a neutralimpression with the availability of technological resourcesfor teaching at the university; (14.3%) were dissatisfied,(7.1%) were very satisfied, (50%) were satisfied and nonewere very dissatisfied. Routine access to technology (i.e.computers or tablets), software solutions (e.g. read andwrite software, internet browsers) and internet connectiv-ity is a key requirement. And with a limited percentage oflearners currently pleased with the available technical toolsat the institution, clearly shows that inconsistent computerconnectivity makes it exceedingly difficult for lecturersto incorporate advanced technology into current teachingplans.

The pie chart above indicates that (21.4%) had a neu-tral impression with the opportunities for professionaladvancement at the university; (21.4%) were dissatisfied,(7.1%) were very satisfied, (50%) were satisfied and nonewere very dissatisfied. Students long for opportunities thatappreciate their abilities and allow them to contribute tothe development of their institutions into more successfulcenters of learning. In addition, students who may have aninterest in transferring to an executive role will benefit fromavenues that enable them to improve their expertise overtime while also acting as successful workers or employers.

The pie charts below show the percentage of howaccounting students and accountants can use informationtechnology.

To Assess the Main Drawbacks of Advanced Technology for the Accounting Sphere 5

Figure 8. Map a network drive to my web folder.

The pie chart above reveals that (21.4%) are basic whenit comes to creating a functional web page with MicrosoftWord, (35.7%) are learners and the majority of the (42.9%)are proficient. While remarkable recent advances havebeen made successful use of education has been made.Literacy technologies may need more preparation time oncomputers than they do.

The pie chart above reveals that (28.6%) are basic to mapa network drive to their web folders, (21.4%) are proficientsand the majority of the (50%) are learners. It is evident fromthe majority of learners that the most widely cited expla-nation for lack of technology in the classroom is lack ofskill learning and instruction. These participants were notadequately prepared to carry out the task.

7 Conclusion

According to literature analyses the threats of accountingsystems are real, from booking fraudulent purchases toletting someone hack a backup tape of all the financialdetails around it. As several aspects of everyday life, tech-nologies have changed the manner in which accounting isdone, both for personal accounts and for small and largefirms. Instead of making long tables of paper entries anddoing measurements by hand, technologies have made alot of the accounting process automated after the basic datahas been entered. Yet advanced technology is not with-out drawbacks, and all pros and cons should be weighedbefore it is used.

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Kotlikoff, L. J. (1995). Generational accounting. NBER Reporter, 8.Kwilinski, A. (2019). Implementation of blockchain technology in

accounting sphere. Academy of Accounting and Financial StudiesJournal, 23, 1–6.

Shaanika, I., and Iyamu, T. (2015). Deployment of enterprise architecturein the Namibian government: The use of activity theory to examinethe influencing factors. The Electronic Journal of Information Systems inDeveloping Countries, 71(1), 1–21.

Valero, A. (2006). Exergy accounting: capabilities and drawbacks. Energy,31(1), 164–180.