Robotic Process Automation (Rpa) in Accounting and Auditing of Business and Financial Information

Manager - The British Journal of Administrative Management
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Volume 58 Issue 157 Dec 2022
ROBOTIC PROCESS AUTOMATION (RPA) IN ACCOUNTING AND AUDITING

OF BUSINESS AND FINANCIAL INFORMATION
Dr. A. Balamurugan
Professor,
Department of Management Studies,
Bharath Institute of Higher Education and Research, Chennai, India.
Email: drabala72@gmail.com
Dr. M. Vamsi Krishna

Aditya Engineering College, Surampalem, India,
Email:vkmangalampalli@gmail.com
Dr. Rajib Bhattacharya

Associate Professor,
Globsyn Business School, Swiss Park, Tollygunje, Kolkata,
West Bengal, India, Email: rajib.learner@gmail.com
Dr. Shariq Mohammed

Assistant Professor,
Department of Accounting,
College of Commerce and Business Administration Dhofar University Salalah,
Sultanate of Oman. Email: drshariqmohammed@gmail.com
Dr. Bhadrappa Haralayya

Professor and HOD,
Department of MBA, Lingaraj Appa Engineering College Bidar,
Karnataka, India. Email: bhadrappabhavimani@gmail.com
Dr. Priyanka Kaushik

Professor,
Department of Computer Science Engineering (AIT CSE AIML),
Chandigarh University, Punjab.
Email:kaushik.priyanka17@gmail.com
Abstract
Using cutting-edge technology, robotic process automation (RPA) may improve workflow by streamlining
repetitive, high-volume procedures. An automated process automation company's apps that use AI and
machine learning may help businesses manage, install, and optimize automation to carry out a range of office
tasks. RPA is being used by more and more sectors of the economy to finish time-consuming operations.
These activities include accounting and auditing. The accounting department serves as a business's core.
Industry Qualifications, The Institute of Administrative Management, UK | 127

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Companies would have trouble tracking their production and growth if their financial reports weren't reliable.
Virtually every industry in today's world uses information technology (IT), and businesses that cannot keep
up with emerging technologies will eventually go out of business. Professional accounting and auditing
services might increase their performance using RPA because of the nature of their particular operations and
superiority in other areas (RPA). RPA may also streamline the process so that it complies with professional
standards and requirements while cost-effectively boosting the accounting profession's reputation. Robotic
process automation (RPA) is considered more relevant for addressing a transition than other approaches,
especially when it comes to automating judgement systems and systems that require human interaction
(RPA).
Keywords: Robotic Process Automation, Financial technologies Accounting Auditing Technology implementation
1. INTRODUCTION
The term "robotic process automation" (RPA) refers to a generic collection of automation tools for
automating any manual, repetitive activity at scale, frequently by automating manual operations carried out
on spreadsheets, in-house, legacy programmes, or other systems. RPA developers often employ a low-code
or no-code workflow builder to automate a manual process to establish a series of phases. Additionally, they
may develop or amend complex step-by-step scripts (like coding) that control the automation logic and use a
screen recorder to capture keyboard and mouse clicks. [1]
The recorded activities are then replayed against current systems and spreadsheets by a programme known as
a bot, which takes over for a human and completes tasks, including typing, choosing fields, copying, and
pasting.
Why Robotic Process Automation Is Important
Not replacing humans with machines is where RPA's strength lies. They are freed up to concentrate on
strategic activities. Higher-level accounting is challenging, and it calls for in-depth knowledge and subtlety
when analyzing financial records, examining financial reports, or calculating corporation taxes.
Through the completion of unskilled jobs, RPA enhances Accounting. By giving accountants the freedom to
be more analytical and forward-thinking while also continuously improving the robots' capabilities, it
promotes continuous progress [2]. It makes it possible for capable personnel to provide strategic services to
their department and the broader company. RPA excels at doing discrete, straightforward, high-volume
operations that often need minimal human oversight, such as processing invoices, inputting sales orders,
handling refunds, and automating customer care answers.
In addition to conditional business logic that specifies what to do if an error or another choice is needed, as
illustrated in figure 1, these activities may include collecting customer information from a document or
mimicking inputting customer information into a legacy application.

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Figure 1: Benefits of RPA

Use Cases for RPA in Auditing
RPA is essential for carrying out detailed internal audits. Auditing should be automated gradually so you can
evaluate it and make adjustments as necessary, but the results may be unique. You can speed up many of the
longest-running auditing activities with the correct tools while enhancing data visibility and process results
[3]. Let's examine a couple of the ways that RPA is now affecting this field.
For income audits for the firm to stay on track each day, it is essential that you have a clear understanding of
your cash flow and that your data are correct. Many of the comparable activities needed for regular revenue
audits may be handled by robots, saving you time and allowing you to focus on providing thorough reports.
Reconciliation jobs might involve hours spent looking at Microsoft Excel, whether there are concerns about
a series of transactions or you need to do quarterly ledger reconciliation as part of compliance requirements
[4]. Robots may take over all the repetitive activities you must do with each input, resulting in more effective
audit results.
Exception Flagging: If staff employees don't catch issues before it's too late, the company might lose money
or become unstable. RPA effectively identifies when specified business requirements are violated since it
mainly relies on rules. The robot may then forward the exception to the proper authority to resolve it.
Robots may also help with continual rules-based risk assessment, which is crucial for reducing firms' burden
on audit specialists. The system may generate an alert for attention when possible risk breaches develop due
to specific transactions or changes in the company's financial vitals.
The Advantages of Using RPA
Why is RPA such an intriguing technology for so many businesses? Numerous accounting, financial, and
auditing procedures may be partly or entirely automated to speed up labour. Automation can have specific
hazards, too, including those related to staff morale and process errors [5]. However, RPA has the opposite
impact when it is deployed correctly and deliberately built, offering benefits like:
Having the chance to "work smarter, not harder." Every employee has voiced their unhappiness with
monotonous procedures like pasting formulae and results across programmes. RPA increases output and
worker satisfaction.
• Accuracy is crucial since mistakes may lead to delays and expenses. RPA guarantees precision in processes

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at every stage when set appropriately. The firm may save money by lowering the rate of human mistakes
while maintaining the efficiency of critical operations.
• By using RPA today, the organization has a foundation to expand its automation footprint as technologies
advance and mature [6]. As new prospects for automation emerge, a current investment can provide
unanticipated returns.
What are the Benefits of RPA in Finance and Accounting?
Finance and accounting are two industries that benefit more from robotic process automation than any other.
The advantages of robotic process automation in finance and accounting, given the highly transactional nature
of the industry, include the following:
1. Scalability
You may need to bring on a new team member whenever transaction volume hits a particular level in order
to handle the demand. With RPA, this is not the case. The bot's output can scale as necessary as the workload
grows.
2. Innovation
RPA may assist in automating data analytics and delivering deeper insights to help businesses make the best
choices by being able to gather both new and old data from current systems.
3. Efficiency
Repeated tasks need time. By using RPA, you may significantly shorten the time it takes for your team to
complete critical tasks, allowing them to devote more time to meaningful and strategic projects.
4. Compliance
In order to stay in compliance, finance and accounting demand extreme attention to detail. Your organization
might experience serious financial setbacks with only one slip-up. By minimizing possible human mistakes,
RPA software automatically increases your team's accuracy.
How is RPA used in Finance and Accounting?
There are several uses for robotic process automation in the financial and accounting industries. Once
deployed, RPA will save your company time and reduce the possibility of mistakes in everything from
managing operations to processing data.
Let's look at some of the typical use cases for RPA to help you understand how it might benefit your company.
1. Accounts Receivable
It is crucial to manage accounts receivable adequately since it immediately affects cash flow. Accounting
personnel invest a lot of time monitoring payments and entering data into various systems.
If even one entry is entered wrongly, it might have a significant impact on payment. As a result, automating
the generation, transmission, and monitoring of invoice payments is possible using robotic process
automation.
Customers may pay faster after they get an invoice, which can significantly reduce late payments.

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2. Accounts Payable
Like accounts receivable, accounts payable is a crucial repetitive task for accounting staff. Accounts payable,
in contrast to accounts receivable, demands that buying orders and vendor invoices be compared before
payments are made.
Again, this results in a laborious and information-intensive procedure. However, this won't happen if robotic
process automation is used. RPA may assist in avoiding late payments by setting up reminders and
automatically distributing incoming bills to the appropriate recipient.
RPA may also quickly verify everything is in order by comparing invoices and purchase orders.
3. Client On boarding
Financial institutions are required by the Know Your Customer laws to do due diligence before onboarding
new clients. This can develop into a training activity that wastes their time.
RPA bots may be used to gather information quickly rather than spending a lot of time sifting through
numerous systems. When the bots have finished collecting data, they may submit a thorough report to the
compliance manager or other responsible party for evaluation and onboarding approval. The bot may add all
pertinent data to the CRM or customer profile if a new client is accepted.
4. Financial Statements and Financial Close
Your finance staff may quickly create current financial statements using RPA, even daily. Your company
executives are prepared to respond swiftly and wisely with the most recent financial information.
To complete the financial closure and enter the next period, it is also required to get accurate financial
statements after each month. RPA allows the procedure, which often takes weeks to complete, to be
completed in minutes.
5. Financial Planning and Forecasting
Financial accounts and data must be incorrectly entered and unorganized to forecast the future. Your data
will be accurately gathered, changed, and saved using bots for forecasting purposes.
Automation solutions can provide a detailed picture of what the future may contain by using past data from
several departments. With this knowledge, you may make a financial prediction and then profitably carry out
variance analysis without difficulty.
6. Travel and Expense Processing
When your workers travel for work, they anticipate being paid back promptly. The number of expenditure
reports will rise along with the level of travel.
To approve payments, your accounting staff will be burdened with analyzing receipts and expenditure
reports. To handle this procedure, you may instead use robotic process automation.
Software robots can quickly determine if the given data complies with internal regulations by comparing it to
the internal policy and updating the accounting team.
7. Reconciliation of Accounts
Account reconciliations are a must for all organizations, large or small. It is vital to compare internal account
balances to external statements.

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In addition to taking time to gather and compare data, account reconciliation also requires time for approvals
and may be neglected if there are bottlenecks. Any account reconciliation you could need to do, including
intercompany reconciliations, has all of its problems resolved by RPA.
You can rely on the programme to swiftly compare information, alert the appropriate human party if an
abnormality appears, and even identify fraudulent charges early enough to address any concerns before they
become too complicated to manage.
8. Management of Data
Your company may use data from several platforms to run its operations. RPA automation may aid in the
movement and transformation of data across systems to carry out procedures, perform analytics, and provide
valuable reports.
Businesses consider data their most valuable asset, but when it is fragmented and difficult to access, it is
worthless. You may use all the data you've been gathering with RPA software to enhance decision-making,
answer queries, and customer support.
How to Implement RPA in Finance and Accounting?
RPA is a fantastic entry point for automation. This is due to the existence of software solutions that can
function right out of the box and start delivering ROI right away.
Consider starting your RPA journey by doing the following actions:
Determine Processes
Make a list of all the manual business operations that take up time on your team's schedule first. In order of
difficulty, list them. Also, keep in mind that repeated, high-volume, and finite processes are the most
significant candidates for RPA.
Requirements for Documents
Examine the procedures as mentioned earlier objectively. Make a note of any modifications that may be made
to decrease waste. Document the designs and all appropriate parties so that everyone may participate in the
deployment of RPA.
Get the Data Ready
For procedures to be successfully carried out by RPA, correct and organized data is required. If at all feasible,
try to gather data in one central spot. If not, make sure you are aware of the precise location from which data
must be retrieved for the RPA solution to function.
Create the procedure
Define the process's phases and the desired outcome. Set up checkpoints so that your team can examine the
job and ensure that everything is running well.
Check the Results
Start small and test RPA before deploying it widely. You will be able to determine with the help of this test
whether or not the RPA system has received correct and complete data from you. Include every team member
typically involved in the process so they may provide input on whether or not everything is going as planned.
If everything is in order, you may increase how often you use the RPA solution.

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2. LITERATURE SURVEY
Financial Planning & Forecasting
Without correct data, planning could not be considered credible. Your business's actuals serve as its blueprint;
you compare them to your budget and use the results to determine your projection.
Modern accounting systems assist in adjusting to the current market situation, where forecast factors are
changing quickly. This makes it possible to close rapidly by connecting operational and financial data with
business data.
However, in a conventional setting, finance often spends the majority of its time laboriously using manual,
spreadsheet-based methods to get the numbers correct. EY claims that since finance teams are primarily
focused on the financial close, the company must wait until after the period-end for information.
RPA stands for the automation of routine, organized, rule-based activities, and it may be seen as a kind of
software that imitates human action while carrying out a job as part of a process. It can save humans from a
lot of labour by making repetitive tasks quicker and more precise and "does not weary" [7]. In other words,
RPA helps to decrease human mistakes and expenses while increasing the effectiveness of business processes.
Additionally, it has the ability to communicate with other software programmes at the user interface level,
but it lacks intelligence in that it is unable to adjust to changes and make complicated judgments. RPA is a
software programme that enables firm personnel to set up computers or "robots" to execute pre-existing
programmes for transaction processing, data manipulation, eliciting answers, and interacting with other
digital systems [8]. The term "RPA" most often refers to software setup for data transfer from several input
sources, like emails and spreadsheets, to registration systems like ERP and customer relationship systems,
such as CRM [9].
RPA encompasses a broader range of related technologies, including robots, artificial intelligence, machine
learning, autonomous systems, and more [10]. RPA mainly accesses and works with spreadsheets,
documents, and emails utilizing the company's core programmes to execute tasks. According to [11], RPA
makes it simple to automate ongoing tasks and procedures in a variety of departments, including those
responsible for manufacturing, finance and accounting, sales, acquisitions, supply chain management,
customer support, and human resources [12].
The audit and accounting processes have evolved to include a number of computer-supported tools and
procedures, which are often linked by a number of human stages and "clicks" of verification. An entire
predetermined sequence of automatable operations may be completed using RPA. RPA may be used to
automate specific steps in the audit process, especially those that are likely to include strategies and recurring
judgments [13]. RPA represents a significant and unsettling shift from the primarily manual audit practises
now in use, but it also holds the possibility of enabling auditors to perform at a far higher level [14]. However,
since audit and accounting services are so heavily regulated, the RPA for audit services is still in its infancy.
Before using RPA in accounting and auditing requires careful consideration of whether to separate these two
components from enterprise resource planning (ERP) or general company financial administration or to see
them as only supporting components of the overall strategy [15]. When considering financial administration
in its entirety, it becomes clear that a variety of interfaces must be functionally mutually acceptable one
another in order to be able to collect and acquire relevant data. This calls for modifications to government
institutions' policies and procedures as well as implementation in businesses [16].
In interviews with Big 4 public accounting experts, there are often difficulties caused by customers who are

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reluctant to employ RPA software [17]. Clients' incomplete grasp of bot capabilities and functionality is
partially to blame for this. Additionally, there is considerable opposition because of concerns about how
automation may affect the positions of their personnel. Additionally, due to data problems, many customers
are hesitant to embrace new technology. Circumstances exist over the security of corporate operations and
the transfer of information between countries [18].
3. RESEARCH METHODOLOGY
Three-Step RPA-Based Audit Process
RPA, a technology-based process improvement technique, is anticipated to be utilized in auditing to replace
time-consuming human tasks and encourage the re-engineering of audit processes. The RPA deployment
route may be used by public accounting companies to assess if RPA is a suitable match [19].
The following are the three primary stages of RPA implementation:
● Process comprehension
● Data standardization for audits
●Automatic audit test execution
Process Comprehension
RPA may, in theory, be an excellent match for many audit procedures. For audit procedures, RPA is
especially useful for the time-consuming, repetitive tasks that don't need auditor discretion. If public
accounting firms take into consideration subject-matter expertise, such as that of revenue audit leaders, and
calculate the actual hours spent doing audit tasks, they may be able to pinpoint an audit process where RPA
might be useful. Another critical factor in determining if automation is necessary is the frequency with which
a business must execute a specific job, which is primarily determined by the number of audits carried out
accordingly.
Data Standardization for Audits
For RPA audit programmes to work as intended, all data fields must be consistent. Because audit-related data
might originate from a variety of sources, including the client's ERP systems and external asset managers,
data field names in various audit-related reports that contain the same information may vary. If so, RPA
software is unable to perform the scheduled audit test. As a consequence, as part of the second phase of the
deployment process, public accounting firms are needed to create an audit data standard for each task that
RPA would replace.
Execution of Audit Tests
Before being utilized on actual audit engagements, the software must be configured to perform audit tests
automatically. The RPA audit implementation architecture's last stage is this. There are other RPA software
options available for use by public accounting companies, but two of the most well-known ones are Blue
Prism and UiPath (available at https://www.blueprism.com and https://www.uipath.com, respectively).
The advantage of using RPA software packages that are ready to use is that little to no additional programming
is required. But even though they need more advanced programming skills, languages like Python and R may
aid in the implementation of RPA-based audit activities. But Python and R already have packages that are
pretty useful for RPA routines.

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3.2 How Robotic Process Automation Is Transforming Accounting and Auditing

Robotic process automation (RPA) is the use of cutting-edge technology to streamline tedious, high-volume
processes and enhance productivity. An automated process automation company's apps that integrate AI and
machine learning may assist firms in managing, deploying, and optimizing automation to carry out a variety
of office duties. RPA is being used by more and more sectors to do laborious tasks. Auditing and accounting
fall under this category. A company's foundation is its accounting department. Without accurate financial
reporting, businesses would struggle to monitor their production and expansion.
The task of internal staff is made more accessible by RPA's fast update of the accounting process. It carries
out a variety of duties, including financial statement audits, credit card processing, account opening or
closure, client onboarding, and processing loans for mortgages.
Account Payable (AP) and Accounts Receivable are among the duties performed by financial institutions
(AR). Both of these tasks entail a great deal of repeated physical labour. Losses and human mistakes are now
more likely. To paper-based financial procedures are inefficient and time-consuming. The answer is robotic
process automation (RPA). A robotic workforce is capable of collecting, analyzing, and producing outcomes
based on the data. It automates the creation of financial reports and gets rid of mistakes and contradictions.
Let's take a look at the specific benefits of RPA in accounting and auditing.
3.3 Benefits of RPA in Accounting
• Saves Time: RPA helps accountants save time by automating and streamlining laborious accounting
procedures. They may devote more time to activities that promote company growth.
• Improves Accuracy: Accounting mistakes may be pretty expensive. RPA quickly fills many ledgers while
maintaining high-quality, error-free data.
• Improves Staff Productivity: Since RPA takes care of data input, it saves a tonne of time and raises
employee output. They may provide superior customer service by using their abilities to handle essential
duties.
• Data Retrieval: Cloud-based storage is used by RPA. For accountants, online storage is reasonably
practical. Robotics increases the effectiveness of the accounting department in any firm by making it simple
to get information [20].
• Improves Customer Experience: By automating accounting procedures, staff members are free to
concentrate on enhancing the quality of their job, which raises customer happiness.
• Quicker Reconciliation: RPA may include time-consuming tasks like combining the inputs of many workers.
The efficiency is increased by the software bots' automation of data transmission and the resolution of
inaccurate data.
Other advantages of RPA in the realm of accounting and auditing include the following:
• Monthly payroll expenses are reduced
• Billing is processed more quickly
• Fraud detection is possible
• The final financial report is optimized

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• Tax reporting is improved.

• Simplify the procedure for managing expenses
• No restrictions on work
3.4 Implementation of RPA
Numerous repetitive activities are involved in accounting and auditing. All tasks in this area, including RPA
may automate tasks like as data collection, risk management, and AP/AR. Assisting and streamlining difficult
human workers is what RPA does best. However, it is best to delegate the duty to people if rules cannot be
stated [21]. For RPA to be really successful, technology must be used to streamline processes so that labour
can be allocated to tasks that provide value. However, it is crucial to keep in mind that even automated
procedures are susceptible to little mistakes while using RPA. Accountants should double-check the
information to make sure it is correct.
3.4.1 RPA in Public Accounting Practice
Public accounting companies have previously shown interest in RPA, notably with regard to taxes, advising,
and assurance services. For instance, RPA software robots have effectively automated a substantial chunk of
tax-related tasks, including calculating book-tax discrepancies and preparing tax forms. RPA is further made
available to customers as an advice good and service. Due to the highly regulated nature of audit services for
public businesses, RPA for auditing services is still in its early stages, even if RPA software has been
extensively used for tax and advising tasks [22]. However, it is crucial to talk about RPA applications for
services auditing.
RPA for Dual-Purpose Audit Tests
RPA may be configured to determine if the price and quantity vary across sales invoices, sales orders, and
shipping documents. It can also be programmed to warn users when there are price and quantity discrepancies
in a transaction [23]. Automating these processes allows auditors to redistribute their time to higher-value
tasks, improving the audit's overall quality. RPA software will enable auditors to understand the client's
business processes better and, as a result, more accurately determine the risk of material misstatement.
Three-Step Approach to RPA-Based Audits
Technology-based process improvement, known as RPA, is projected to be used in auditing to replace manual
and tedious audit duties as well as spur the re-engineering of audit procedures. Public accounting businesses
may refer to the recommended RPA deployment roadmap when determining if RPA is a suitable match.
3.5 The Impact of Robotic Process Automation on Accounting
Both requirements are met by finance, which has divisions for accounting and purchasing. It is well known in
the business for time-consuming, repetitive operations like data input, reporting, cross-checking, and record
keeping, which are ideal for RPA bots [24]. On the other hand, since there are so few exceptions or instances
of human decision-making, most procedures are more or less organized and rule-based.
The wonderful thing about robotic process automation is that once deployed; you will almost immediately
witness a return on investment. It seems to be low-hanging fruit, given the comparatively simple setup and
the fact that robots don't physically interface with your information systems.

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Improved Fewer mistakes

Higher More transparency,
operational and better Cost reduction
productivity fewer risks
metrics and SLA compliance
Utilize KPIs like Software robots can Your staff will There won't be as
RPA will simplify
Days Inventory, do routine tasks spend less time on much personnel
essential financial
Days Sales like processing mundane chores, turnover owing to
procedures while
Outstanding, Days invoices from start freeing more time exhaustion, which
reducing regulatory
Payable to finish, around for strategic will result in
and data security
Outstanding, and the clock, and planning and value- cheaper recruiting
threats.
many more. error-free. creating initiatives. expenses.
The use of robotic process automation in accounting and finance has five key advantages.
You must, however, be prepared to encounter certain obstacles. One of them is the continued use of paper-
based or non-standardized accounting paperwork, such as expenditure statements or vendor invoices.
Another one deals with dealing with old ERP systems, which may cause problems for any digitalization
endeavour.
All current RPA technologies provide answers to problems involving both data extraction and system
interaction. So, let's look at the top 10 RPA application cases in accounting and finance.
1. Debtor's Account
Accounts Receivable is an excellent place to start automating finance since it depends less on external
documents than Accounts Payable does. Days Sales Outstanding is the significant measure RPA may assist
leverage in this situation.
2. Procure to Pay and Accounts Payable
Days Payable Outstanding is a statistic that robotic process automation may assist you in increasing in this
situation. Although having a high DPO offers benefits, such as having extra cash on hand for immediate needs,
it may also be problematic for reputation. When pleasant credit conditions are the cause of the high DPO,
that is wonderful. However, if your inability to pay your bills on time is the result of inefficiency, then it is
not so good.
3. Financial balancing across businesses
Another potentially fruitful use of RPA in accounting and finance is in the field of intercompany
reconciliations. Constant anxiety is caused by the time-consuming and error-prone process of manually
entering, extracting, and reviewing financial data in order to provide a reliable financial statement.
Unexpectedly large unreported balances or transactions, or billing mistakes, might stall the whole
department.
4. Inventory control
This business process is all about power; to have a steady supply of products, you must be aware of inventory
levels. RPA bots can do all the labor-intensive tasks and assist in leveraging dead stock and stock-outs to
shorten lead times and reduce storage expenses.

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5. Travel and other costs

RPA bots may help travellers and accountants with a lot of tedious labour when it comes to business travel,
improving the employee experience. With little effort on the part of the personnel concerned, they can read
and extract data from all kinds of receipts, determine if they qualify as business expenses, and compile the
information into precise expense reports.
• Entering expenditure records and verifying that they adhere to corporate standards and legal
requirements
• Compiling information into expense reports
• Managing benefits and reimbursements and generating paychecks
• Notifying users of data inconsistencies or policy breaches
6. Payroll
When it comes to payroll, bots aid by handling data input, timesheet checking, and deduction calculations,
preventing payment delays and mistakes [25]. Even paper sick lists, which are still used in certain countries,
may have data extracted from them.
7. Tax
Although tax compliance software handles the majority of this business process, finance teams still need to do
time-consuming interim computations. This process can be automated by RPA robots by tackling the
following:
 obtaining information for tax liability
 establishing tax base
 Report creation
 updating workbooks for tax returns
 reporting to the tax authorities
No. 8 Treasury
The same is true for treasury management: despite the fact that relatively complex information systems are
in place, initial data entry is often done manually. Additionally, bots may do more than extract and change
data into a format that a treasury system can handle.
Data extraction and formatting
Treasury system updates
Distributing reports
Updating the general ledger
9. Accounting information
Keeping track of profit and loss on a daily basis is a secure technique for keeping tabs on financial performance.
Manually updating P&L reports, however, takes a lot of effort and time [26]. RPA can relieve you of this

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responsibility and provide flawless reports in real-time. Your company operations will become more visible
thanks to this clever automation, which will also guarantee accurate financial forecasts.
RPA may be helpful in a wide range of reporting procedures, including:
Statements of trial balance and balance
Income declarations
Analysis of P&L Variance
Closing financial transactions
Management and regulatory reports
10. Forecasting and financial planning
Bots may assist with planning and forecasting chores like putting balances into planning systems and producing
deviation reports. Modern RPA systems may also give projections and aid in improving financial planning
based on this knowledge and previous data.
Table 1:
Business Risks Automation Risks
Change How is HR tackling the impacts of Identify and access management. Centre of
Management RPA? Secured business processes Excellence
How are changes to be
communicated?
Executive Who has the ownership of RPA License Compliance Automation Proof of Concept
initiatives? Strategy and governance
Who will manage the framework and
promote efficiencies?
Functional Who designs control systems? Adaptations schemes of existing Backward
Are there scalability limitations in systems with new features Legacy Compatibility
RPA and core systems? systems for simultaneous and unified
operations across technical testing
and rollout
Technical How will the data Quality and Incident management and business Implementation
accuracy be ensured? continuity Regularly compliance
How are the tests, validation, and
maintenance?
Operational What controls exist to monitor Data leakage and privacy Cyber- Business
performance? threats Case
How will the business comply with
regulatory requirements?
When an existing method is revised in table 1, there is a real risk that the management providing the go-ahead
does not fully grasp the concept. The interface and underlying mechanics are completely recognisable to the
programmer or IT professional who develops or offers the system intended to upgrade the present system.
Since seniority in a company is often linked with an older generation, most upper-level managers most
definitely do not fit into this group. Instead, they need full education on important issues that they have never
experienced before. Given the lack of knowledge, it seems sense to expect that there would be a high risk of
misuse and that top management mistakes will occur rather than the system failing itself.

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4. CONCLUSION
Since its debut in the commercial sector, robotic process automation has come a long way. Today, it is a
crucial component of a larger automation plan. RPA and similar technologies may result in considerable time
and cost benefits for your company when configured and deployed appropriately. The majority of business
procedures connected to finance and accounting are covered by the use cases we have included below. This
indicates that even without significant infrastructure modifications, any financial department with a large
number of manually executed activities may gain from digital transformation. And that's the main benefit of
intelligent automation with RPA: you can shorten the path to increased productivity, freeing up employees
to work on more practical, challenging, and strategic activities.
We have offered technical, sociological, and commercial perspectives on the status and problems of current
technology and implementation throughout our study on RPA and AI in accounting and auditing, with the
constant key issue in all situations being the relevance of mentality and ecosystem modelling. It is essential to
keep in mind that cross-departmental support and a clear mindset must be maintained, that both clear
strategies and problem statements must be defined, and that knowledge must be channelled into the
appropriate centres of excellence with the proper skills in order to achieve a successful implementation of
such systems in accounting and auditing. When dealing with mistakes or insufficiencies, this will assist them
in minimizing the risks and ensuring leaner operations. Only firms that take into account a large number of
risk variables from many angles may fully use RPA and AI systems; in contrast, other organizations will spend
limited resources on unfocused and unreliable procedures without meaningful ownership of business or
technological sectors.
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ROBOTIC PROCESS AUTOMATION (RPA) IN ACCOUNTING AND AUDITING

Dr. M. Vamsi Krishna

Dr. Rajib Bhattacharya

Dr. Shariq Mohammed

Dr. Bhadrappa Haralayya

Dr. Priyanka Kaushik

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Figure 1: Benefits of RPA

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3.2 How Robotic Process Automation Is Transforming Accounting and Auditing

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• Tax reporting is improved.

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Improved Fewer mistakes

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5. Travel and other costs

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