DIGITAL TECHNOLOGY IN ACCOUNTING AND AUDITING

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06 tháng 07 năm 2025

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.