The Fourth Industrial Revolution (4IR) is
occurring strongly, ushering in a digital technology era for all industries,
including Accounting and Auditing. This article aims to outline the impacts of
4IR and highlight the opportunities and challenges in the future.
Digital Technology in Accounting and
Auditing
4IR brings many useful technological platforms
that enhance the efficiency and accuracy of Accounting and Auditing work.
Popular digital applications include Cloud Computing, Big Data, and Artificial
Intelligence (AI).
·
Cloud Computing: This model
provides computing resources to users via the internet. A key advantage of this
system is the continuous updating of information, allowing users to analyze
data and make decisions based on the latest information.
·
Big Data: Unlike traditional
data processing models, big data technology allows for unlimited storage of all
types of digital data from various sources into a central data repository,
enabling access, processing, and extraction of important information from this data
reservoir.
·
Artificial Intelligence (AI):
AI enables broader analysis and enhances the ability to identify trends over
time as machine learning algorithms operate with more data. Increased data
provides more input regarding customers, pricing, and cost structures, allowing
accountants and auditors to generate future value for companies rather than
relying solely on past reported results. AI can automate tasks such as data
collection, processing, and calculations, but human involvement is still
necessary for analysis and situational processing.
Changes in the Industry Due to 4IR
1. Automation
of Accounting Processes: Advanced software like Enterprise Resource
Planning (ERP) ensures that processes are executed systematically and
transparently across departments, resulting in accurate, consistent, and
transparent accounting data throughout the company.
2. Strict
Controls and Data Reconciliation: The use of accounting applications
helps businesses significantly reduce human errors, as modern software includes
features to prevent fraud and emphasize cross-data control.
3. Changes
in Document Storage: The explosion of 4IR, cloud computing, and big
data enables systematic and scientific storage of large volumes of information,
gradually eliminating paper documentation that consumes unnecessary space and
complicates retrieval.
Opportunities & Challenges for
Accountants/Auditors in the 4IR Era
·
Opportunities: The increasing
use of digital platforms allows the accounting profession to overcome
geographic limitations. In other words, an accountant/auditor in Vietnam can
perform their job anywhere in the world. Additionally, international
applications help accountants and auditors get closer to systematic working
methods and thinking, thereby expanding their professional knowledge.
·
Challenges: In the face of the
significant impact of 4IR, today's accountants/auditors must not only master
professional knowledge and adhere to ethical standards but also continuously
enhance their software skills. Without a solid understanding of digital
technology, accountants and auditors will struggle to manage their work
effectively. Furthermore, in an era characterized by seamless information flow
and tight interdepartmental connectivity, accountants/auditors also need to
develop soft skills such as compliance, critical thinking, and teamwork to
advance further.