FAR661

New Technology:
Data Automation &
Artificial Intelligence
Accounting Theory & Emerging Issues

Prepared for: Professor Dr Corina Joseph

Group
Members
AC2206A

Angellie Anak Jadua (2021156455)

Jasmin Solihah (2021123881)

Nur Asmaaina Munirah (2021124297)

Sharifah Farah Shahirah Shahab (2021572077)

 Introduction to Data Automation
& Artificial Intelligence
What is Data Automation?

The process of uploading, handling, and processing data via automated tools instead of
manually performing all these taks.
Three elements involved in data automation: Extract, transform, load.
Can be used to automate data extraction process, data analysis, data mining, and data
visualization processes.

Examples of data automation in accounting:

Records storage
Invoice creation
Audit preparation
Budgeting and forecasting
 Introduction to Data Automation
& Artificial Intelligence
What is Artificial Intelligence?

Alan Turing (father of Computer Science) defines Artificial Intelligence (AI) as systems that act
like humans.
Combination of computer science and robust datasets to enable problem solving
Fields related to AI: machine learning, deep learning

Real-world applications of AI:

Speech recognition
Customer service
Computer vision
Recommendation engines
Automated stock trading
Justification/Background of The
Emergence of This Development

Why Data Automation is Important?

1. Consistent application
Help to keep the data consistent and up to date all the times
Would improve data quality

2. Can do the workloads

For example, data entry, billing system and sales support
By using fully automated system, people can delegate other important tasks which will save time and
produce good performance that can increase the productivity.

3. Minimize human involvement

Reduce human errors and mistatement
Justification/Background of The
Emergence of This Development

Justification of AI

In this era of advanced technology, AI has continually pushed the boundaries of human creativity and
are likely to revolutionise the foundation of the accounting profession.
AI helps the accounting industry in completing their works from traditional/manual method to
computerized ones.
AI also helps in the process of integrating information, analyzing data and to enhance the decision-
making.
AI can evaluate greater amount of data and summarize it in a shorter time.
The company that have adopted AI in their operations have seen great success with the assistance of
AI.
Justification of Development of
Artificial Intellengence
COMPANY: AMAZON
Amazon has faced accounting problem
which is managing transactional volumes.
In Amazon retails, they deals with large
amount of data and transactions including
to capture customer contact information.
Thus, Amazon adopted AI such as
Quickbooks to handle large amounts of
detailed transactions in their business.
One of their sales strategy is whereby the
company is using AI to process data and
predict exactly what each customer is likely
to buy.
As customers move through Amazon’s
website, AI-powered recommendations keep
customers engaged and spending then it
turns Amazon into active sales environment.
 Expert System

It is the most developed segment of AI which

is for the purpose of advising the
Development of accountant on a variety of issues.
It is more valuable to the accountant than to
Artificial a technological displacement.
For example, in the past, the accountant
Intellengence make a decision based on the figures or
manual method which could cause a human
error.
By using expert system, it can produces a
better decision quality, reduce the cost and
saves a lot of time.
 "KPMG Ignite"
(Technical partner ecosystem)
Helps build and provide solutuions using
AI with tested open source tools
Accelerates development
Acts as data analysis processor that
Provides unbiased estimations

EY adopts ML technology too detect fraud Payroll Tax Automation

Capable of filing anf allocating payroll
EY FIDS achieved accuracy of 97% identifying codes
suspicious invoices using ML technology Reconciliation with tax authority

EY uses new technologies (drone) KPMG had been working with IBM Watson,
To utilize machine reading(QR) (most advanced artificial intelligence
To assist inventory observation technology)

It works by natural language processing

and machine learning to reveal insights
and information from huge quantities of
unstructured data

ScaleFactor Raised $100 Million In A Year Then Blamed Covid-19 For Its Demise.
Employees Say It Had Much Bigger Problems.

Bookkeeping and accounting. Founded by

CEO Kurt Rathmann in 2014

-He saw an opportunity. Technology is taking over in the

future to replace messiness of accounting.
-Started company after working with KPMG
-Rathmann isn’t a software engineer or AI researcher and
didn’t understand how technology works.

Instead, he lied to investors, customers & employees

and wasted millions of venture capital funds.
Challenges of Using Data Automation and AI in Accounting

Increase in
Distrust of AI
unemployment

Lack of Knowledge and

experience in initial stage
 Challenges of Using Data Automation and AI in Accounting

Shamus Rae, a partner at KPMG He says: “AI will increase our audit quality, as it begins to allow us to ask a lot more questions. It
will improve efficiency in what we do and it will provide more insight. More than whole jobs disappearing, we will more likely
see an impact on skill sets and we will still need humanities. We want this to lead to a more holistic education for all.”

Increase in
“Maybe we will start to look at hiring technology graduates,” explains Shamus Rae, a partner at KPMG and
unemployment the Big Four firm’s lead for innovations and investment. “We have got quite reasonable growth plans and we
do plan to increase the number of staff that we have got. But we will reduce the number of repetitive jobs
and amount of receptive work we do; we see this as an opportunity for rebalance.

CFOs say that AI works on a very complicated algorithm that's "in the box," and question
whether they can learn to trust it, Tay said. (Managing director of finance and CFO services at
Deloitte) Distrust of AI
Compare AI to human output and hire people with the talent to guide, monitor and govern the
technology, he said.
Challenges of Using Data Automation and AI in Accounting

Lack of Knowledge and

experience in initial stage

Prevents organizations from adopting AI technologies smoothly

and hinders organizations on their AI journey.

Spend additional budget (Development training, AI development

talents, License)
Challenges of Data Automation and AI

Substantial operating
(Company has to ensure
Security
accountants have extra
knowledge to use data threats
autmation)

Data obtained to make Noisy data can

predictions must be exact result in errors
and accurate for better during processing
development and operations
 Advantages of AI and Reduce the risk of
fraud

Technology to the AI can predict patterns and

detect a wide variety of

Accounting irregularities in financial data.

Profession Eliminating human

error

Accounting automation are

programmed to follow strict
protocols when performing any
task.
Enforce corporate Streamline data
policy entry and analysis

AI can be used to reduce the AI can help financial managers

amount of time it takes to uncover keep better track of transactions
issues of noncompliance in that are time consuming and
finance data. tedious.
Deloitte has been efficiently leveraging technology to help
provide an integrated approach to process improvement
that can help accounting, tax, and HR departments
substantiate and promote their strategic value to finance
the organization.

Their services include:

1. ERP system design and implementation

2. Process mapping
3. Compliance process automation
4. Data analytics
Suggestions To Help
Solving Issues

ARTIFICIAL INTELLIGENCE

Investigate issues related to human intervention in the development

and use of cognitive computing systems for augmented intelligence

Identify ways of managing organizational changes for increased

intelligence

Relate assurance of accounting cognitive computing system compliance

to normative standards
Suggestions To Help Solving
Issues
DATA AUTOMATION

Improve soft skills, such as communication

Accountants should be trained, and even re-training

Learn technological tools such as data analytics, financial

modeling, and forecasting
Employees can use the time they would have spent access to
data to act on it instead of with the help of an automated
system
How Theories Can Help Solving Issues
THEORIES OF PLAN BEHAVIOUR (TPB)

TPB can work well in explaining the behavioral changes in human,

which contribute to their acceptance of technology
The approach started as the theory of reasoned action applicable in
modeling a person's intention to practice a particular behavior at
specified place and time

Organization have used the TPB model to predict and explain many
behaviours, especially when implementing new technology.
Examples Of Article
 Sample and data

The study sample focused on a total of

546 final-year accounting students
from Malaysia;s top six (6) public
universities for accounting and finance
who are participating in the intership
programs. A total of 187 (34%)
respondents have participated in the
survey.
Findings and Discussion

Cronbach's Alpha is used to determine the measurement's reliability:

values above 0.7 are deemed acceptable
values above 0.8 are preferred [24].

The Cronbach's Alpha values in Table 2 show that all of the items in the
questionnaires are reliable and can be used for further analysis.
Conclusion of Article

Most research shows how technology makes changes toward accounting life such as
management accounting that needed to go through the changes of its fundamentals.
Thus, this creates urgency towards the accounting graduates to not cause the
accounting profession of its influence to be diminished

Overall, the results indicate a strong correlation between technology preparedness

and the future accountants' ability to participate in the digitization of the
accounting profession.

It implicitly implies that accountants will be better able to adjust to changes in

technology as long as they are better trained to use it.
THANK YOU