Accounting – Impact of Technology

Abstract

Development of technology has had its effect on all aspects of life including accounting hitherto under the discipline of accounting principles prescribed as Accounting Standards for different purposes differently. The accounting records will now have to include printouts, floppies, discs, tapes, credit and debit cards, interfaces, NEFT, RTGS and BHIM and other electronic modes. Industry-wise accounting now available for purposes as for banking, insurance and co-operative societies may be extended further. Cost Audit facilitates cost control and cost reduction computing “true and fair view” of cost of production/ service providing a tool for analysis. Cost accounting has greatly helped optimization of production, improvement of marketability. Institute of Companies Secretaries of India not lagging behind with plan for four Accounting Standards CSAS 1 to 4 with guidelines for first three on recommendatory basis published for public comments. It was hitherto confined to secretarial audit now extends its scope to evaluation of conclusions on audit process under any other statutes, besides more innovations prompted by developing technology. With robotics taking over their normal functions, the auditors have to be creative being participants of the ever-expanding technology rather than being mere applicants of such technology.