The Impacts of New Information Technology Developments on the Accounting Profession

1. The Impacts of New Information Technology Developments on the Accounting Profession Recep Pekdemir, Ph.D. Professor of Accounting, Istanbul University President, The Expert Accountants’ Association of Turkey FCM Conference, Recep Pekdemir

2. The Impacts of New Information Technology Developments on the Accounting Profession • IT ? • Hardware and software products, information system operations and management processes, and the human resources and skills required to apply those products and processes to the task of information production and information system development, operation, management and control FCM Conference, Recep Pekdemir

3. The Impacts of New Information Technology Developments on the Accounting Profession • IT has been pervasively going on in the world for decades • For the professional accountancy, competence with this technology has been an imperative FCM Conference, Recep Pekdemir

4. The Impacts of New Information Technology Developments on the Accounting Profession • IT has been playing a vital role in supporting the activities of all organizations, profit or not profit oriented • Professional accountants have been extensively using various types of ITs • Professional accountants have been vitally playing important managerial, advisory and evaluative roles in connection with the adoption, deployment and use of various ITs by organizations of all types and sizes FCM Conference, Recep Pekdemir

5. The Impacts of New Information Technology Developments on the Accounting Profession • Society has been expecting professional accountants accepting an engagement or occupation have the required level of competence to perform the work required FCM Conference, Recep Pekdemir

6. The Impacts of New Information Technology Developments on the Accounting Profession Certain IT Trends: • Powerful and inexpensive computer hardware is widely available • Powerful capabilities in numerous devices designed for personal and professional use FCM Conference, Recep Pekdemir

7. The Impacts of New Information Technology Developments on the Accounting Profession Certain IT Trends (cont.): • Powerful, inexpensive and relatively user-friendly software wit graphical user interfaces is widely available • New data capture and storage technologies are leading • Convergence of information and communication technologies FCM Conference, Recep Pekdemir

8. The Impacts of New Information Technology Developments on the Accounting Profession Certain IT Trends (cont.): • Mass marketing and distribution of IT products and services • Increasing use of networks to link individuals, intra-organizational units and inter-organizational units • Reduction of barriers to systems use, encouraging wider penetration of information systems into all organizations for accounting and broader management and strategic purposes FCM Conference, Recep Pekdemir

9. The Impacts of New Information Technology Developments on the Accounting Profession Certain IT Trends (cont.): • Wider penetration of ITs such as CAD/CAM, CIM, Computer Imaging Systems, Computer Integrated Audit Techniques, Executive Information Systems (EIS), Electronic Meeting Systems (EMS) • Widespread adoption of enterprise systems integrating operational and financial systems such as ERP and CRM FCM Conference, Recep Pekdemir

10. The Impacts of New Information Technology Developments on the Accounting Profession Certain IT Trends (cont.): • Increasing use of Internet for many aspects between organizations and individuals and between organizations and other organizations through electronic commerce systems • Such as on-line storefronts, markets and exchanges, EDI and electronic billing, payment and funds transfer FCM Conference, Recep Pekdemir

11. The Impacts of New Information Technology Developments on the Accounting Profession Nature of the Profession: • The accountancy profession has been a diverse one • Professional accountants operate in several work areas: • Industry and commerce • Public practice • Public sector (government, state, and other non-profit units) FCM Conference, Recep Pekdemir

12. The Impacts of New Information Technology Developments on the Accounting Profession Roles Taken: • Professional accountants everywhere may take a role: • User of ITs • Financial manager • As member of a team, financial information system’s designer • Internal auditor; financially or operationally • External auditor • External advisor (consultant, accountant, tax practitioner, insolvency practitioner) FCM Conference, Recep Pekdemir

13. The Impacts of New Information Technology Developments on the Accounting Profession Challenges to professional accountants: • ITs have been affecting the way in which organizations are structured, managed and operated • ITs have been changing the nature and economics of accounting activity • ITs have been changing the competitive environment in which professional accountants participate FCM Conference, Recep Pekdemir

14. The Impacts of New Information Technology Developments on the Accounting Profession Opportunities for professional accountants: • Information creation and information system design • Information system management and control • Information system evaluation FCM Conference, Recep Pekdemir

15. The Impacts of New Information Technology Developments on the Accounting Profession Conclusion: • To cope with the challenges and to get benefits from the new opportunities, IT education for the accounting profession should not be neglected • So that both the professional accountants and the prospective professional accountants can gain the competence required. FCM Conference, Recep Pekdemir

16. The Impacts of New Information Technology Developments on the Accounting Profession Conclusion (cont.): • Accounting curriculum for the professional accountants should cover all IT aspects • Pre-qualification requirements should be dealt with IT • IT knowledge should be evaluated for entering the profession • Post-qualification should be dealt with IT • So, professional accountancy should go on at the same speed of IT FCM Conference, Recep Pekdemir

17. The Impacts of New Information Technology Developments on the Accounting Profession • Thanks • Questions... FCM Conference, Recep Pekdemir