Saint Louis University
School of Accountancy, Management, Computing
and Information Studies
Maryheights Campus, Bakakeng, Baguio City
The Dependence on Information Technology on the Accounting Profession
A Thesis Study
In Partial Fulfilment of the Requirements
In Management Consultancy I
Prepared by:
Agbayani, Martina A.
Bumanglag, Brylle P.
Caraan, Carolyn Jell D.
Diola, Mark Presus S.
Morareng, Trixia May A.
Bernadette Adelaida M. Cope , CPA
Chairman
Kamille M. Bagwel, CPA
Panelist 1
Josephine M. Acop, CPA
Panelist 2
Table of Contents
Abstract ........................................................................................................................................... 1
Background of the Study ................................................................................................................ 2
Literature Review............................................................................................................................ 5
Theoretical Framework ................................................................................................................... 7
Statement of the Problem ................................................................................................................ 8
Scope and Limitations of the Study ................................................................................................ 8
Methodology ................................................................................................................................... 8
Results and Findings ................................................................................................................... 10
Figure 1.1. The number of years in practice of CPA’s in Baguio City ..................................... 10
Figure 2.1. Dependency on Software (0-5 Years in Practice) ................................................... 10
Figure 2.2. Dependency on Software (6-10 Years in Practice) ................................................. 11
Figure 2.3 Dependency on Software (11-20 Years in Practice) ................................................ 11
Figure 2.4 Dependency on Software (More than 20 Years in Practice) ................................... 12
Figure 3.1. Implication of Automation for Accountants of 0-5 Years in Practice .................... 13
Figure 3.2. Implication of Automation for Accountants of 6-10 Years in Practice .................. 13
Figure 3.3. Implication of Automation for Accountants of 11-20 Years in Practice ................ 13
Figure 3.4. Implication of Automation for Accountants of more than 20 Years in Practice .... 13
Figure 4.1. Limitations of Automation for Accountants of 0-5 Years in Practice .................... 14
Figure 4.2. Limitations of Automation for Accountants of 6-10 Years in Practice .................. 14
Figure 4.3. Limitations of Automation for Accountants of 11-20 Years in Practice ................ 14
Figure 4.4. Limitations of Automation for Accountants of more than 20 years in Practice ..... 15
Figure 5.1. Advantages of Automation for Accountants of 0-5 Years in Practice ................... 15
Figure 5.2. Advantages of Automation for Accountants of 6-10 Years in Practice ................. 15
Figure 5.3. Advantages of Automation for Accountants of 11-20 Years in Practice ............... 15
Figure 5.4. Advantages of Automation for Accountants of more than 20 Years in Practice .... 16
Conclusion ................................................................................................................................... 16
References:................................................................................................................................... 18
APPENDICES ............................................................................................................................. 20
Agbayani, Martina Joy A.
martinajoyyy@gmail.com
Bumanglag, Brylle P.
bryllebumanglag14@gmail.com
Caraan, Carolyn Jell D.
caraanjell@gmail.com
Diola, Mark Persus S.
markyy213@gmail.com
Morareng, Trixia May A.
trixmay.1999@gmail.com
Abstract
The purpose of this research is to identify the dependence on Information Technology on
accounting profession. The dependence on Information Technology has made on accounting is
the ability of companies to develop and use computerized systems to track and record financial
statements, Information Technology have shortened the time needed by accountants to prepare
and present financial information to management. This research uses survey questionnaires that
will be answered by Accounting Profession. Respondents highlighted that maintaining a diverse
range of skills and knowledge on Information Technology was an essential attribute to
Accounting Profession to obtain. The result and findings shows 54% of the respondents have
been in accounting profession for 0-5 years, and the dependency on specialized software to
complete work tasks, these result have been categorized by level of dependency. respondents
predicted that automation will result in more specific job opportunities with special skills
required. Training required to maintain alongside the automated services. The main advantage
of automation is that of respondents felt that efficiency/accuracy was the most beneficial..
Finally, this paper shed light on dependence on using Information Technology on Accounting
Profession.
KEYWORDS: Accounting Information System, Advancement of Information Technology,
Influence in Accounting, Dependency of Information Technology Accounting Profession,
Development of Information Technology
1
Thesis Title: The
Dependence on
Information Technology on Accounting
Profession
Background of the Study
Accounting is a system that a company uses
to measure its financial performance by
noting and classifying all the transactions
like sales, purchases, assets, and liabilities in
a manner that adheres to certain accepted
standard formats. It helps to evaluate a
company’s past performance, present
condition, and future prospects. Information
Technology is the area of managing
technology and spans wide variety of areas
that include but are not limited to things
such as processes, computer software,
information systems, computer hardware,
programming languages, and data
constructs. In short, anything that renders
data, information or perceived knowledge in
any visual format whatsoever, via any
multimedia distribution mechanism, is
considered part of the domain space known
as Information Technology (IT) (Elliott
1998).
Towards the end of the twentieth century the
accounting profession began to take on a
whole new look. Computers and accounting
software has changed the industry
completely. With programs such as
Microsoft Excel, an accountant now had an
electronic
spreadsheet.
Machines,
calculators, ledgers and pencils were no
longer needed. The job became less tedious
with less of a margin for error. The training
for accountants which included basic
accounting, auditing and tax preparation was
a thing of the past. With use of the
computer, an accountant can now perform
statistical accounting or forecasting analysis
with
greater
efficiency.
Accounting
technology has eliminated the number
cruncher sitting behind a desk working on
people’s taxes and has allowed the
accountant to find new challenges with
much more to offer than decades ago when
they relied on a calculator for a calculating
tool (Kruglinski, 2009; “How Technology,”
n.d.).
Accountants were pushed towards acquiring
new skills due to the advancements that
information technology has made on the
accounting industry. Accountants now have
to have a high level of computer and
technical skills. These skills have become
part of the knowledge, and abilities of the
accounting professionals. In its report the
American Institute of Certified Public
Accounts (AICPA) said that, “The
knowledge, skills and abilities necessary for
the entry-level accountant now include the
application and integration of information
technology into the accounting process, as
well as financial and managerial accounting
principles” (Dillon, Kruck, 2004). From this
research, not only does an accountant need
to have a broad range of accounting
knowledge and a strong ability to apply
accounting
principles,
government
regulations and interpret tax laws. They
must also have strong skills in information
technology, to be able to merge accounting
with information systems. These accountants
will be in greater demand by the profession
(Dillon, et al, 2004).
Information technology (IT) and accounting
systems would be a major component of
accounting research. “While it is widely
acknowledged that IT plays an important
role in the field of accounting, (Granlund,
2
2007:3). The impact of IT on a firm’s
performance is not directly observable.
Public accounting firms need to understand
how technology can transform their work
and whether such transformation will
ultimately lead to productivity gain. A
model
curriculum
developed
by
International Standards of Accounting and
Reporting (ISAR) suggests four (4) blocks
of knowledge. These are of organizational
and business knowledge, accounting and
accounting-related knowledge,
general
knowledge, and ITs. The IT component was
detailed to include IT concepts for business
systems, internal control in computer-based
business systems, development standards
and practices for business systems, the
management
of
IT
adoption
and
implementation, and managing the security
of information, artificial intelligence, expert
systems, fuzzy logic and electronic
commerce systems (Ricco, Saikata &
Gualberto, 2002).
The biggest impact IT has made on
accounting is the ability of companies to
develop and use computerized systems to
track and record financial transactions.
Paper ledgers, manual spreadsheets and
hand-written financial statements have been
translated into computer systems that can
quickly present individual transactions into
financial reports. Computerized accounting
systems
have
also
improved
the
functionality of accounting departments by
increasing the timeliness of accounting
information. By improving the timeliness of
financial information, accountants can
prepare reports and operations analyses that
give management an accurate picture of
current operations. Accuracy is also
improved by limiting the number of
accountants that have access to financial
information. Less access by accountants
ensures that financial information is adjusted
only by qualified supervisors. Quicker
processing times for individual transactions
has also lessened the amount of time needed
to close out each accounting period. Monthor year-end closing periods can be especially
taxing on accounting departments, resulting
in longer hours and higher labor expense.
Shortening this time period aids companies
in cost control, which increases overall
company efficiency. Reports issued to
outside investors and stakeholders have been
improved by computerized accounting
systems. Improved reporting allows
investors to determine if a company is a
good investment for growth opportunities
and has the potential to be a high-value
company.
The usage of computers and other advanced
technology have increasingly been adopted
in most practices including accounting. Prior
to this, accountants were vigorously
involved in all accounting activities as the
traditional methods were in place. Daily
records had to be kept and the preparations
of financial statements were done manually
by accountants. Hunton (2002) found that
the services of public accountants have
evolve and that the scope of assurance
providing has been widen to include services
which ascertain the reliability, integrity, and
credibility of information systems, and
electronic commerce systems.
Over the years, accounting is associated with
the development of information technologies
in which accounting students are now
required to learn about information systems.
Today, financial reporting problems have
become more complex and would take a
3
long time to solve without the use of
computers. Having less human input needed
to carry out these tasks could be perceived
as a threat to the jobs of the accountants who
previously would have taken responsibility
for working on them. However, when
implemented correctly, automation should
actually help make their jobs easier by
increasing efficiency, and leave accounting
professionals with more free time to focus
on higher level tasks such as building client
relationships
and
advising
clients.
Automation should also help reduce
mistakes by minimizing human error. All in
all, it seems unlikely that in the future,
professionals will need to sit down and look
through paperwork, especially standardized
documents such as invoices, because
automation will be able to analyze them in a
much shorter period of time than a human
ever could.
Information Technology is seen as affecting
the role of an accountant creating new
challenges and opportunities (Lamberton et
al. 2005). It has changed the way accounting
firms do everything from hiring and
retaining employees to communicating with
clients.
Businesses
are
expecting
professional
accountants
to
possess
exceptional Information Technology skills.
The rapid changes in hardware, software and
networking technologies create difficulties
for accountants who need to understand the
implications of these advancements.
Wallman (1997:108) illustrates that “in
order to provide useful information
optimally, accounting must change with the
developments in technology.” Wheeler et al.
(2004) propose that individuals who train to
become an accountant may not feel
comfortable with learning all the computer
based skills and challenges that they face.
To do this, the accountant has to know how
to use the computer system and, more
importantly,
understand
how
these
transactions are recorded and updated to be
able to ascertain the accuracy and reliability
of the data. Accountants also take other
roles, such as those of auditors and
management accountants, which require an
understanding of how their companies’
computer systems work (Romney &
Steinbart 2009). It is therefore important for
accountants to possess IT knowledge and
skills relevant to their roles to provide
competent and professional services.
However, the field of IT is wide and not all
IT knowledge and skills relate to an
accountant’s role. For example, accountants
need not know how to code computer
programs – this is the job of a computer
programmer. Accountants also need not
know the technical details of data
communications as long as they have a
general understanding of how data are
transmitted between two computers. This
raises the questions: What kind of IT
knowledge and skills do accountants need?
What are the entry-level IT skills and
knowledge that educators should provide?
Educators grapple with these issues
constantly (Cytron & Tie 2001, p. 74).
The purpose of this paper is to focus and
study specifically the dependence on the
advancement of technology on the
accounting functions such as assessing the
efficiency and effectiveness of business
operations
and
preparing
financial
statements. The researchers will seek to
determine what the challenges IT can pose,
and contribute to the body of knowledge
about to what extent IT affects the ability to
solve different accounting tasks.
4
Literature Review
Nowadays research within management
accounting and information systems is
coming alive with the advent of integrated
information systems such as enterprise
resource planning (ERP) systems (Chien &
Tsaur, 2007). An accountant who has access
to a computer and the right systems can
easily perform tax preparation services,
statistical analysis and forecast modeling
much more efficiently without spending
years completing core training. Accountants
are no longer the number crunchers that they
are pictured to be. Instead, they are
professionals with diversified roles who
have become part of strategic planning.
Now, many accountants are giving advice,
developing new processes, and performing
future forecasts that an information
technology cannot be trusted to do.
Effectiveness of new IT in companies is
clear and obvious. Integrated system like
enterprise resource planning systems as well
as Internet keep pace with the newest
transitions in companies knowledge. Some
of these technologies, especially Internet,
with widespread usages have changed
companies accounting procedure and
structure. Before the advent of this medium
(Internet), organizations typically had made
use of IT in the form of application of
particular computer systems such as
payment and financial reporting systems
which had employed certain operational
methods and or supported given managerial
processes
automatically(Dehning
&
Richardson, 2002).
Accounting software gathers under the
same roof all systems and applications
dedicated to managing and processing
financial data. Accounting professionals and
bookkeeping teams use these programs to
govern accounts and automate systematic
operations, while certain systems are also
enabled to record accounting data, measure
indicators, and report on the company’s
financial activity.
The role of accountant and objective of
accounting systems which is to process
financial and economic data into information
for decision making is still the same. Also,
the audit objective which is to render an
opinion on the “true and fair view” of a
client’s financial statement still holds,
however, the technical expertise that the
auditor must possess to evaluate computerbased accounting systems has undergone
considerable changes and the change will
ever continue to be more radical and rapid
(Ofurum and Ogbonna, 2012). Computer as
a component of Information Technology,
according to Ogbonna (2010), has never had
as much impact as it now has on accounting.
Information Technology has affected the
entire framework of accounting practicemethods,
process,
environment
and
economics: Traditional manual accounting
methods can no longer cope with the growth
and complexity of business enterprises and
are being neatly phased out. The explosion
in the application of IT to the accounting
function means that accountants who are not
computer-literate may have to seek their
relevance elsewhere most likely outside the
accounting
profession.
The
above
recommendations
and
comments
increasingly call for extra-ordinary caution
and challenge to the professional accountant
to ensure at all times that the confidentiality
of his client's and/or employer's information
is strictly preserved and maintained. He
5
should also ensure that knowledge gap or
lack of adequate knowledge of his client's
business activities does not exist. This
constitutes the hallmark and acid test of the
professional accountant as far as the client's
and employer’s information is concerned.
Information systems according to Stair et al.
(2008) have been developed to meet the
needs of all types of organizations and
people and their use is spreading throughout
the world to improve the lives and business
activities of many citizens.
A growing number of academic studies
report positive effected of Information
technology on various measures of
economic performance. While one study
shows a negative correlation between total
factor productivity and high share of hightech capital formation during 1968-1986
period (Berndt and Morrison, 1995), another
study suggest that computer capital
contributes to growth more than ordinary
capital during the similar period. Hitt and
Brynjolfsson [1994] report positive effects
of IT based on output and consumer surplus
measures. On the other hand, Landauer
[1995] de-emphasizes the findings of recent
studies and documents various cases of ‘the
trouble with computers. At this stage, the
academic research results are incon5-sistent
on a number of dimensions, including
measures of performance, methodologies
and data sources.
An important study computer-using workers
by Krueger (1993) indirectly supports this
view. He found computer-using workers
earned 10%-18% higher wages than nonusers. In 1984, 24.6% of workers were using
computers at work. By 1989, this number
had grown to 37.4%. Assuming that workers
are paid according to their productivity, this
implies that computers at work increase
level of GDP by 3%. Although this number
is not substantial enough to compensate the
annual 1% productivity slowdown after the
early 1970s, it indicates that information
technology may actually boost office worker
productivity, which has decreased as a result
of other factors.
Technology plays a key role in today’s
business environment. Many companies rely
greatly on computers and software to
provide accurate information in order to
manage their business effectively. The
impact of IT in companies is extensive and
is manifested in the most varied ways
(Granlund, 2007; Alves, 2010). “Prior to the
emergence of this environment, the presence
of IT in the organization has typically taken
the form of specific computer application
systems, such as accounts payable and
financial reporting systems, which either
automate specific operational procedures or
support certain managerial processes”
(Teng&Calhoun, 1996: 674). It is usually
argued that the first use of an information
system was in relation to accounting (Rom
& Rohde, 2007), because IT was often
centered around the firm’s financial ledgers
and
reporting
systems
(Granlund&Mouritsen, 2003). But, “the
constantly growing and changing field of
information technology has a significant
impact on the roles of executives at all levels
of business organizations” (Crescenzi&
Kocher, 1984:34).
A review of research combining information
systems and economics, by Bakos and
Kemere [1992], includes particularly
relevant
work
in
sections
on
“macroeconomic impacts of information
technology” and “information technology
6
and organizational performance”. Many of
the papers seek to directly assess IT
productivity begin with a literature survey.
The reviews by Brooke (1992); Barua,
Mukhopadhyay and Kriebel (1991); Berndt
and Morrison (1995) were particularly
useful. Most recently, the first part of
Laundauer’s (1995) book details research
result surrounding the productivity puzzle.
Wilson (1995) also provides a useful survey
of twenty article.
Although this review considers about 150
articles, it cannot claim to be
comprehensive. Rather, it aims to clarify for
the reader the principal issues surrounding
IT and productivity, by assimilating the
results of a computerized literature search of
30 of the leading journals in both
information systems and economics, and by
including discussions with many of the
leading researchers in this area, who helped
identify recent research that has not yet been
published.
This topic is chosen because the researchers
want to know whether accountants should
rely on the advancement of Information
technology. Traditionally, research in
Information Systems has focused on the
study of information processing, on
computer systems security and on the
development of new systems; Even those
studies that have, in some way, covered this
relationship fall short due to their focus on
outdated tools. information systems has
evolved across a number of different lines of
research. Some place heavier emphasis on
the information systems side (Rom &
Rohde, 2007:41).Nonetheless, to be able to
understand emerging technologies and
anticipate their effects on accounting, we
must begin to(Hopwood, 1987).
Theoretical Framework
The purpose of this section it to point out the
more general, theoretical concerns involved
with the topic of the study. The following
discussion aims to introduce a theoretical
argument that will point out the many
important roles of Information Technology
may play now and perhaps increasingly in
the future in accounting and other
management process. These roles may take
forms ranging from "concrete" efficiency
enhancing to a more abstract mediating role.
Information Technology innovations are
implemented and used merely to improve
efficiency with regard to task, functional or
organizational level performance.
The advances in communication and the
revolution in information have turned into
landmarks for the accounting profession, as
accounting remained stagnated for many
years due to its deficit position or even due
to the lack of information exchange with its
users. Among these advances, the advent of
Internet use stands out, which permits
information
monitoring
and
virtual
transmission. The integrated use among
network computers and the Internet have
marked a new information age (Araújo,
Cavalcante e Duarte, 2003).
Another innovation that entailed several
modifications for the accounting firms is the
Public Fiscal Bookkeeping System – SPED,
established by Decree 6.022 on January
22nd 2007. The objective of the SPED is to
standardize the fiscal obligations. This new
situation simplified the taxpayers’ additional
obligations, which will facilitate and
rationalize their information (Azevedo e
Mariano, 2011). According to studies like
Faria, Finatelli, Geron and Romero (2010),
however, the SPED has not achieved
satisfactory results yet in terms of agility and
7
productivity,
as
it
demands
implementation and execution costs.
high
Specifically, it seeks to answer the following
questions:
Due to these technological changes, the
accounting firms need to heed and be
prepared for this improvement, mainly
regarding the accounting SPED. According
to Duarte (2009, p. 107), digital
bookkeeping (DBK) is “the accounting pillar
of the SPED. In simplified terms, DBK can
be understood as the production of
accounting ledgers in electronic format,
using a file with a standardized layout, and
signed with a digital certificate”
1. What is the profile of CPA’s in
Baguio City based on their years of
practice?
2. What is the degree of dependence on
Information Technology by CPA’s in
Baguio City in selected sectors in the
practice of their profession?
3. Is there a significant difference in the
number of years of practice of the
CPA’s in selected sectors in Baguio
City on their dependence in
Information Technology in their
practice?
The advent of the social networks has
entailed new lifestyles and customs for
society and impacts for the accounting firms.
Duarte, Quant and Souza (2008) have
defined the social networks as groups,
through “specific software that permits the
recording of profiles, with general and
specific data and information, in a wide
range of formats and types”, which can be
accessed by other people from many varied
settings.
According to Lemos, Pastor and Oliveira
(2012), the social networks support
communication
among
organizations,
offering benefits to the users. On the other
hand, Mondini, Domingues, Correia and
Mondini (2012) underline the companies’
difficulty to control their use by the staff,
reducing their employees’ productivity.
Statement of the Problem
The main aim of this study is to determine
the dependence on Information Technology
on the Accounting Profession
Scope and Limitations of the Study
This research uses the exploratory
perspective, which was done through
surveys and interviews to explore the role
and features of a computerized accounting
system. It also covers the study about the
dependence
on
accountants
with
computerized accounting systems. The
scope of this research was limited to
professional accountants that work in
accounting firms, banks, government and
academe around Baguio City. Each of the
respondents are given a questionnaire to
answer.
Methodology
This part of the study represents the research
methods used by the researchers in the
analysis of the data to produce good quality
of information as to whether professional
accountants should fear or embrace the
advancement of technology. It is comprised
of how the study was conducted, what
methods and materials were used and who,
8
where, and how the respondents of the said
research were selected.
The purpose of this study is to gain
accountant insights about the advancement
of technology pertaining to accountant’s
work. The researchers employed the use of
questionnaires as the primary means of
getting information where the researchers
will distribute questionnaires to professional
accountants
in
Baguio
City.
The
questionnaires will be answered through
encircling and putting a checkmark for their
answers in the choices given. After the
distribution of the questionnaires, the
answers will be quantified by tallying the
answers of the respondents.
The questionnaire will be limited to
Certified Public Accountants in Baguio City
since they have a working knowledge of the
different accounting system which they are
currently apply in their profession and are
able to provide opinions of the impact,
advantages and disadvantages of the
different accounting system.
The researchers made use of Yamane’s
formula to determine the sample size of their
respondents. Upon employing the formula,
the sample size was determined to b 247 out
of 643 registered Professional accountants in
Baguio City provided by the Philippine
Institute of Certified Public Accountants –
Baguio (PICPA-Baguio).
The computation of the sample size is as
follows:
n=
𝑁
1+𝑁𝑒 2
643
= 1+(643 )(5%)2
= 247
Where:
n= the sample size
N= the population size
e= Desired Margin of Error
The primary data will be collected from the
respondents through survey questionnaires.
The data analysis of this research is
represented through quantitative manner. It
has been mentioned earlier that the data will
be gathered from a floated questionnaire. As
a result, the analysis will be quantitative and
qualitative data.
9
Figure 2.1. Dependency on Software (0-5
Years in Practice)
150
100
50
0
0-5 Years 6-10 years 11-20 years more than
20 years
Results and Findings
Q1. How long have you been in the
accounting profession?
Figure 1.1. The number of years in
practice of CPA’s in Baguio City
Figure 1.1 shows that 54% of the
respondents have been in the accounting
professing for 0-5 years, 22% for 6-10 years,
14% for 11-20 years and 9% for more than
20 years
Q2. How often do you rely on specialized
software to aid your work?
Figure 2.1 helps to detail the dependency on
specialized software to complete work tasks.
These results have been categorized by level
of dependency below:
High Dependency
Bookkeeping: According to the respondents,
bookkeeping requires software assistance all
the time by 35%, software assistance is
required often by 17% and never received
.75%.
Proofreading Documents: 55% of the
respondents use specialized software and
21% often use specialized software.
Medium-high Dependency
Consulting: 32.35% of respondents rely on
software often, while 8.82% use it all the
time for consulting. 14% use software rarely
and 24% either never use software.
Accounting services: Similarly, Dependency
on software is evident in accounting, with
responses showing software is occasionally
relied on for Tax Returns by 58% of
accounting professional, while 4% rely on
software all the time. 35% of respondents
often rely on software for profit and loss,
with almost a quarter using software all the
time. For bookkeeping 35% occasionall rely
on software, while 35% use it all the time.
42% occasionally use software for audit and
assurance, and a 11% rely on software all
the time.
Payroll: 42% of professionals surveyed
occasionally rely on software, with 7% using
software often.
Medium-low Dependency
Customer Service: 44% of the respondents
rarely use specialized software, 41%
occasionally, and only 1% never use
specialized software.
10
Bank Operations: Processing routine
account transactions received 47% where
specialized softwares are rarely used. 51%
rarely use specialized software when
handling loan payments and cash checks,
51% for opening accounts and 52% for
exchanging foreign currency.
Low Dependency
None of the business activities never rely on
specialized software.
software , 62% of our respondents
occasionally use specialized software on
audit and assurance. 43%, 41%, and 42%
often and occasionally use specialized
software in consulting, customer service and
exchanging foreign currency.
Medium-low Dependency
Customer Service: 41% of our respondents
rarely use specialized software.
Allocating Budgets: 40% of our respondents
rarely use specialized software.
Low Dependency
none of the business activities never rely on
specialized software.
Figure 2.2. Dependency on Software (6-10
Years in Practice)
Figure 2.2 helps to detail the dependency on
specialized software to complete work tasks.
These results have been categorized by level
of dependency below:
High Dependency
Accounting Services: 67% of our
respondents always use specialized software
in proofreading documents. In bookkeeping,
profit and loss statements and payroll, our
respondents use specialized software 41%,
32% and 52% use specialized software
respectively.
Bank Operations: in processing routine
account transactions, 57% use specialized
software. 42% and 44% always use
specialized software when it comes to
handling loan payments and cash checks and
opening accounts respectively.
Medium-high Dependency
Accounting Services: 55% of our
respondents occasionally use specialized
Figure 2.3 Dependency on Software (1120 Years in Practice)
Figure 2.3 helps to detail the dependency on
specialized software to complete work tasks.
These results have been categorized by level
of dependency below:
High Dependency
Customer Service: 47% of our respondents
always use specialized software when
responding to customers
Payroll: 51% of our respondents always use
specialized software in accounting for
payroll
Processing routine account transactions:
60% of our respondents always use
specialized software in processing routine
account transactions.
11
Handling loan payments and cash checks:
49% of our respondents always use
specialized software when handling loans
and checks
Opening accounts: 69% of our respondents
always use specialized software in opening
accounts.
Medium-high Dependency
Tax Returns: 42% of our respondents
occasionally use specialized software in tax
returns
Bookkeeping: 35% of our respondents often
use specialized software in bookkeeping
Consulting: 74% of our respondents
occasionally use specialized software in
consulting
Exchanging foreign currency: 40% of our
respondents occasionally use specialized
software when exchanging foreign currency.
Medium-low Dependency
Proofreading Documents: 57% of our
respondents rarely use specialized software
when proofreading documents.
Profit and Loss Statements: 37% of our
respondents rarely use specialized software
in reporting profit and loss statements
Low Dependency
Audit and Assurance:
43% of our
respondents never use specialized software
for audit and assurance
Consulting: 74% of our respondents never
sure specialized software in consulting
Figure 2.4 Dependency on Software
(More than 20 Years in Practice)
Figure 2.4 helps to detail the dependency on
specialized software to complete work tasks.
These results have been categorized by level
of dependency below:
High Dependency
Processing routine account transactions:
43% of our respondents always use
specialized software in processing routine
account transactions
Medium-high Dependency
Accounting Services: tax returns, 36%
occasionally use specialized software.
Proofreading documents, profit and loss
statements and audit and assurance often use
specialized software by 43%, 40% and 46%.
Bank operations: allocating budgets and
handling loan payments and checks often
use special software by 35% and 30%.
Opening
accounts
occasionally
use
specialized software by 30%
Medium-low Dependency
Bookkeeping: 33% of our respondents rarely
use specialized software in bookkeeping.
Low Dependency
Exchanging Foreign Currency: According
to the respondents, 57% never use the
assistance of software.
Consulting: 68% of our respondents never
use the assistance of specialized software.
Customer service: 59% of our respondents
never use specialized software in customer
service.
Q3. In your opinion, what will be the
implications of automation in the accounting
industry?
12
19% think that there will be more job
opportunities in general, with another .15%
believe there is no significant difference. 2%
were not sure.
Figure 3.1. Implication of Automation for
Accountants of 0-5 Years in Practice
Figure 3.1 highlights that 60 % respondents
predicted that automation will result in more
specific job opportunities where special
skills are emphasized. This is followed by
24% who believe there will be more job
opportunities. 12% think that there will be
fewer job opportunities, with another 5% are
not sure. None of our respondents says that
there is no significant difference in the
implications of automation.
Figure 3.2. Implication of Automation for
Accountants of 6-10 Years in Practice
Figure 3.2 highlights that 40 % respondents
predicted that automation will result in
fewer job opportunities. This is followed by
29% who believe there will be more specific
job opportunities with special skill required.
Figure 3.3. Implication of Automation for
Accountants of 11-20 Years in Practice
Figure 3.3 highlights that 40% respondents
predicted that automation will result in more
specific job opportunities where special
skills are emphasized. This is followed by
34% who believe there will be fewer job
opportunities. 20% think that there will be
more job opportunities in general, with
another 5% are not sure. None of our
respondents believe that there is no
significant difference on the implications of
automation.
Figure 3.4. Implication of Automation for
Accountants of more than 20 Years in
Practice
Figure 3.4 highlights that 35% respondents
predicted that automation will result in more
specific job opportunities where special
13
skills are emphasized. This is followed by
30% who believe there will be fewer job
opportunities. 22% think that there will be
no significant difference, with another 13%
believe there will be more job opportunities
in general. None of our respondents are not
sure.
Q4. What do you believe is the main
limitation of automation?
Figure 4.1. Limitations of Automation for
Accountants of 0-5 Years in Practice
Figure 4.1 Shows that training required to
maintain/work alongside these automated
services was considered the main limitation
of automation by 53% of respondents. This
was followed by lack of versatility at 21%.
18% of professionals believe limited
cognitive
processing,
whereas
7%
accountants said unpredictable costs. Others
received .07%
Figure 4.2. Limitations of Automation for
Accountants of 6-10 Years in Practice
Figure 4.2 Shows that limited cognitive
processing was considered the main
limitation of automation by 44% of
respondents. This was followed by lack of
versatility, unpredictable costs and training
required to maintain/work alongside
automated services at 19%. None of our
respondents chose others.
Figure 4.3. Limitations of Automation for
Accountants of 11-20 Years in Practice
Figure 4.3 Shows that limited cognitive
processing was considered the main
limitation of automation by 31% of
respondents. This was followed by training
required to maintain/work alongside
automated services at 23%. 20% of
professionals believe lack of versatility,
14
whereas 14% accountants chose others and
unpredictable costs received 11%.
Figure 4.4. Limitations of Automation for
Accountants of more than 20 years in
Practice
Figure 4.4 Shows that training required to
maintain/work alongside these automated
services was considered the main limitation
of automation by 50% of respondents. This
was followed by limited cognitive
processing at 27%. Unpredictable costs and
lack of versatility received 14%. None of
our respondents chose others.
felt increased productivity was most
important and 15% chose others and 7%
chose cost effective.
Figure 5.2. Advantages of Automation for
Accountants of 6-10 Years in Practice
Figure 5.2 shows that 42% of respondents
felt that increased productivity was the most
beneficial aspect of automation, while 36%
felt efficiency/accuracy was most important
and 22% benefit most from cost
effectiveness of automation. Others received
0%
Q5. What do you believe is the main
advantage of automation?
Figure 5.3. Advantages of Automation for
Accountants of 11-20 Years in Practice
Figure 5.1. Advantages of Automation for
Accountants of 0-5 Years in Practice
Figure 5.1 shows that 48% of respondents
felt that efficiency/accuracy was the most
beneficial aspect of automation, while 30%
Figure 5.3 shows that 37% of respondents
felt that efficiency/accuracy was the most
beneficial aspect of automation, while 34%
cost effectiveness was most important and
29% benefit most from increased
15
productivity of automation. Others received
0%
Figure 5.4. Advantages of Automation for
Accountants of more than 20 Years in
Practice
Figure 4.5 shows that 39% of respondents
felt that increased productivity was the most
beneficial aspect of automation, while 37%
felt efficiency/accuracy was most important
and 24% benefit most from cost
effectiveness of automation. Others received
0%
6. Is there a significant difference in the
number of years of practice of the CPA’s in
selected sectors in Baguio City on their
dependence in Information Technology in
their practice?
Figure 6.1 Significant in the Number of
Years
Figure 6.1 shows that CPA’s who has been
in the accounting profession for 0-5 years
are most reliant when it comes to
Proofreading Documents, Bookkeeping,
Profit and Loss Statements, Audit and
Assurance,
and
Processing
Routine
Accounts. Professionals who has been
working for 6-10 years are most reliant in
Proofreading
Documents,
Processing
Routine Accounts, Payroll, Handling Loan
Payments,
Opening
Accounts,
and
Bookkeeping. CPA’s who has been working
for 11-20 years are most reliant on
specialized
software
when
Opening
Accounts, Processing Routine Accounts,
Payroll, Handling Loan Payments, and
Customer Service. Accounting professionals
who has been working for more than 20
years are most reliant on Payroll, Processing
Routing Accounts, Opening Accounts,
Allocating Budgets, and Handling Loan
Payments.
Conclusion
Based on the study, the researchers
finally conclude that majority of our
respondents have been in the accounting
profession for 0-5 years and the only a few
have been in the accounting profession for
more than 20 years. Accountants have been
in accounting profession for 0-5 years
always depend on specialized software in
bookkeeping and proofreading documents.
Profit and loss statements and consulting
often depend on specialized software while
tax returns, audit and assurance and payroll
occasionally depend on specialized software.
Customer service, processing routine
account
transactions,
handling
loan
16
payments and cash checks, opening
accounts, exchanging foreign currency
rarely depend on specialized software. CPAs
who have been in the accounting profession
for 6-10 years always depend on specialized
software in proofreading documents,
bookkeeping, profit and loss statements,
payroll,
processing
routine
account
transactions, handling loan payments and
cash check and opening accounts. CPAs
who have been in accounting profession for
11-20 years always depend on specialized
software in in handling customer services,
payroll, processing routine transactions,
handling loan payments and opening
account while audit and assurance and
consulting never depend on specialized
software and lastly, professionals who have
been in accounting profession for more than
20 years always depend on specialized
software in processing routine account
transaction while consulting, customer
service, exchanging foreign currency never
depend on specialized software.
According to collected information
there is a significant difference on the years
of practice of the CPAs in selected sector in
Baguio City on their dependence in IT in the
practice. In conclusion, CPAs who have
been in the accounting profession from 0-5
years are more dependent on information
technology than those who have been in the
accounting practice for more than 5 years.
Those who have been in the accounting
profession in selected sectors in Baguio City
for more than 20 years are less dependent
since they are in the top management.
17
References:
Ricco, E. Saikata, M. Gualberto, L. (2002). Information systems and technology in accounting,
Retrieved November 7, 2013, from:
http://www.fdewb.unimaas.nl/marc/ecais_new/files/riccio.pdf.
Alakeca apparent . Study entitled computerized accounting information systems in Jordanian
companies in the light of information technology and the fair value of 2006.
What is Accounting Software? Analysis of Features, Types, Benefits and Pricing. Retrieved from
https://financesonline.com/accounting-software-analysis-features-types-benefits-pricing/
Ashish Joshi, MD, PhD, MPH, Jane Meza, PhD, Sergio Costa, PhD, Douglas Marcel Puricelli
Perin, MPH, Kate Trout, MPH, and Atul Rayamajih, MS. The Role of Information and
Communication Technology in Community Outreach, Academic and Research Collaboration,
and Education and Support Services (IT-CARES). Retrieved October 1, 2013, from:
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3797554/
Brisejda Ramaj (2014). Impact of information technology in the accounting profession.
Retrieved from
https://www.researchgate.net/publication/294890069_Impact_of_information_technology_in_the
_accounting_profession
Unknown. EFFECT OF ICT ON ACCOUNTING INFORMATION SYSTEM AND
ORGANISATIONAL PERFORMANCE: THE APPLICATION OF INFORMATION AND
COMMUNICATION TECHNOLOGY ON ACCOUNTING INFORMATION SYSTEM.
Retrieved from:
http://eprints.covenantuniversity.edu.ng/6925/1/ejbss_1737_16_effectofict_on_accounting_infor
mation_system.pdf
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Agenes Ann Pepe (APR 19, 2011). The Evolution of Technology for the Accounting
Professions. Retrieved from: https://www.cpapracticeadvisor.com/article/10263076/theevolution-of-technology-for-the-accounting-profession
Maziyar Ghasemi, Vahid Shafeiepour, Mohammad Aslani, Elham Barvayeh (2011). The Impact
of Information Technology (IT) on modern accounting system. Retrieved from:
https://www.sciencedirect.com/science/article/pii/S1877042811024621
Taiwo, JN and Agwu M.Edwin. Effect of ICT on Accounting Information System and
Organisational Performance. Retrieved from:
http://www.ejbss.com/Data/Sites/1/vol5no02may2016/ejbss-1737-16effectofictonaccountinginformationsystem.pdf
Shirzad Amiri and Nikzad Amiri(2014). Information Technology and its Role in Accounting
Practice. Retrieved from:
https://pdfs.semanticscholar.org/b716/693f5c490bc27dcde6d3365b56bb50ddc561.pdf
Unknown. Retrieved from: https://www.coursehero.com/file/p6njkgmj/Despite-these-the-clearimplications-of-such-advancements-and-developments-in/
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APPENDICES:
Saint Louis University
School of Accountancy, Management, Computing and Information Studies
Maryheights, Bakakeng, Baguio City, Benguet, Philippines
Dear respondents,
Greetings!
We, fourth year BS Accountancy and Management Accounting students of the School of
Management and Computing Information Studies, are conducting a research entitled “Should
Accountants Fear or Embrace the Advancement of Technology” as a requirement of the course
Management Consultancy I (Acctg403A).
Relative thereto, we humbly request you to answer the attached questionnaire. Rest assured that
all information derived from this questionnaire will be kept confidential and will only be used for
academic purposes.
We deeply appreciate your positive response. Thank you!
Respectfully yours,
Agbayani, Martina A.
Diola, Mark Presus S.
Bumanglag, Brylle P.
Caraan, Carolyn Jell D.
Morareng, Trixia May A.
Noted by:
Ms. Josephine M. Acop
ADVISER
20
NAME(optional): __________________________
1. How long have you been in the accounting profession?
A. 0-5 years
B. 6-10 years
C. 11-20 years
D. More than 20 years
2. How often do you rely on specialized software to aid your work? (put a check mark)
Never
Rarely
Occasionally Often Always
Tax Returns
Proofreading Documents
Bookkeeping
Profit and Loss Statements
Audit and Assurance
Consulting
Customer Service (e.g. handling
queries)
Allocating Budgets
Payroll
Processing routine account
transactions
Handling loan payments and cash
checks
Opening accounts(savings and
checking)
Exchanging foreign currency
3. In your opinion, what will be the implications of automation in the accounting industry?
A. No significant difference
B. Fewer job opportunities
C. More specific job opportunities with special skills required
D. More job opportunities in general
E. Not Sure
4. What do you believe is the main limitation of automation?
A. Unpredictable costs
B. Lack of versatility
C. Limited cognitive processing
D. Training required to maintain/work alongside these automated services
E. Others
5. What do you believe is the main advantage of automation?
A. Cost effective
B. Efficiency/Accuracy
C. Increased productivity
D. Other
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