In the document Accounting and Auditing in the Digital Age, I try and explain, as succinctly as I possibly can, how three primary enabling technologies will help the medieval tradition of accounting evolve to meet the new operating needs of businesses large and small. Here is the executive summary:
- The fourth industrial revolution is occurring which is enabling businesses to operate in significantly different ways; enabling technologies include artificial intelligence, internetworked physical devices, cyber-physical systems, nanotechnology, and biotechnology.
- Professional accountants and accounting practices, procedures, and processes will need to adapt. Education and training of professional accountants also needs to adapt.
- Humans augmented by machine capabilities, much like an electronic calculator enabling a human to do math quicker, will empower knowledge workers who know how to leverage the use of those machines.
- Three primary enabling technological innovations are driving this significant change to the current accounting practices, processes, and methods: XBRL-based structured digital financial reports, knowledge-based systems and other application of artificial intelligence, and blockchain-based distributed ledgers.
- While it is difficult to precisely predict the productivity gains which will be realized, initial information is showing the productivity gains will be very, very significant.
Please let me know how I did or if you have ideas for improving this document.
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