Manuscript Number : SHISRRJ193351

Digital Transformation in Accounting : Legal Implications and Challenges

Authors(1) :-Dr. Sanjeev Pal Singh

This article investigates the impact of digital transformation in the accounting business, with an emphasis on upcoming technologies such as blockchain, artificial intelligence, & cloud computing. The study investigates both the obstacles and opportunities that digital innovations provide for financial professionals, such as automation, data protection, and real-time reporting. The findings indicate that, while digital transformation presents new complications, it also improves effectiveness and precision in reporting on finances, making it vital for future generations of accounting. That is why compliance with the rules of data protection, such as GDPR, in the process of digital transformation, data management and governance, and legal aspects of data security concerning financial data and others are crucial for the digital transformation of the accounting profession. However, we've identified potential organizational resistance to change, issues with merging old legacy systems with new technologies, and a shortage of skills due to inadequate understanding.

Authors and Affiliations

Dr. Sanjeev Pal Singh
Associate Professor, Faculty of Commerce, R.B.S. College, Agra

Accounting, Blockchain, Digital transformation, Artificial intelligence, Cloud computing, GDPR, Data Security.

  1. Accounting Horizons, 29(2), 381–396. https ://doi.org/10.2308/a c c h -51053
  2. Al-Htaybat, K., Hutaibat, K., & von Alberti-Alhtaybat, L. (2018). Educating digital natives for the future: Accounting educators’ evaluation of the accounting curriculum. Accounting Education, 27(4), 333–357. https://doi.org/10.1080/09639284.2018.14742 97
  3. Appelbaum, D., Kogan, A., Vasarhelyi, M. A., & Yan, Z. (2017). Impact of business analytics and enterprise systems on managerial accounting. International Journal of Accounting Information Systems, 25, 29–44. https ://d oi.org/10.1016 /j.a c c inf.2017.02.00 3
  4. Ball, R., Robin, A., & Wu, J. S. (2000). Incentives versus standards: Properties of accounting income in four East Asian countries. Journal of Accounting and Economics, 36(1-3), 235–270. https://doi.org/10.1016 /S0165 -4 101(04)00003-7
  5. Ball, R., Robin, A., & Wu, J. S. (2003). Financial reporting and capital markets in Asia. Asia- Pacific Journal of Financial Studies, 15(4), 122–142. https ://doi.org/10.1111/146 7 - 8683.12018
  6. Becker, S. D., & Messner, M. (2013). Accounting for organizational performance in emerging economies. Accounting, Auditing & Accountability Journal, 26(3), 394–426.  https://doi.org/10.1108/AAAJ -06 -2011-07 06
  7. Bushman, R. M., Piotroski, J. D., & Smith, A. J. (2004). What determines corporate transparency? Journal of Accounting Research, 42(2), 207–252. https://doi.org/10.1111/j.1475 -679X.2004. 00138.x
  8. Dai, J., & Vasarhelyi, M. A. (2017). Toward blockchain-based accounting and assurance.
  9. Daske, H., Hail, L., Leuz, C., & Verdi, R. (2008). Mandatory IFRS reporting around the world: Early evidence on the economic consequences. Journal of Accounting Research, 46(5), 1085–1142. https://doi.org/10.1111/j.1475 -679X.2008.00306.x
  10. Ghasemi, M., Shafeiepour, V., Aslani, M., & Barvayeh, E. (2019). The impact of information technology (IT) on modern accounting systems. Procedia Economics and Finance, 4, 112–119. https://doi.org/10.1016 /S2212 -5 671(14)00377-4
  11. Healy, P. M., & Palepu, K. G. (2001). Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of Accounting and Economics, 31(1-3), 405–440. h ttps ://doi.org/10.1016 /S0165 -4101(01)00018 -0
  12.  https://doi.org/10.1007 /978 -3 -319 -42448 -4_9
  13.  https://doi.org/10.1080 /096381807017067 65
  14.  https://doi.org/10.1596 /1813 -9450 -5701
  15.  https://doi.org/10.24818 /ja mis.2020.01002
  16. Journal of Information Systems, 31(3), 5–21. https://doi.org/10.2308 /is ys -51875
  17. Peters, G. W., & Panayi, E. (2016). Understanding modern banking ledgers through blockchain technologies: Future of transaction processing and smart contracts on the internet of money. In Banking Beyond Banks and Money (pp. 239–278). Springer.
  18. Schmidt, M. (2019). Digitalization and the future of accounting in Europe. Journal of Accounting and Management Information Systems, 18(1), 1–12.
  19. Soderstrom, N. S., & Sun, K. J. (2007). IFRS adoption and accounting quality: A review. European Accounting Review, 16(4), 675–702.
  20. Vasarhelyi, M. A., Kogan, A., & Tuttle, B. (2015). Big data in accounting: An overview.
  21. Walker, D. (2009). Accounting, regulation, and digital transformation in developing countries. World Bank Policy Research Working Paper, 57(1), 3–28.

Publication Details

Published in : Volume 2 | Issue 1 | January-February 2019
Date of Publication : 2019-01-30
License:  This work is licensed under a Creative Commons Attribution 4.0 International License.
Page(s) : 339-346
Manuscript Number : SHISRRJ193351
Publisher : Shauryam Research Institute

ISSN : 2581-6306

Cite This Article :

Dr. Sanjeev Pal Singh , "Digital Transformation in Accounting : Legal Implications and Challenges", Shodhshauryam, International Scientific Refereed Research Journal (SHISRRJ), ISSN : 2581-6306, Volume 2, Issue 1, pp.339-346, January-February.2019
URL : https://shisrrj.com/SHISRRJ193351

Article Preview