The Impact of Covid-19 on the Accounting Profession: Evidence from Accounting Professionals in A Developing Country.

Abstract

The COVID-19 pandemic has been the center of attraction for the past four years. Its impact has been immense, affecting numerous sectors across the global economy including the Accounting Profession (AP). Consequently, the purpose of the study was to determine the impact of COVID-19 on the AP in Zambia. The collection of data was done through quantitative methods. Questionnaires in 5 point Likert scale were sent electronically to the ZiCA subscribed members through the ZiCA database., using purposive sampling. The collection of data comprised of 152 Accountants across the country. Data was analyzed through SPSS 26, Pairwise and Spearman’s RHO tests were used. The results indicate a significant relationship on remote inventory valuation both during and before COVID-19, indicating discrepancies on how inventory valuation was conducted, before and during the COVID-19 pandemic. Significant relationships between sector and challenges with inventory valuation during COVID-19; sector and evaluation of going concern in relation to COVID 19; sector and disclosure of accounting estimates and liabilities in relation to COVID-19; sector and adoption of cloud accounting, artificial intelligence, data analytics & forecasting and block chain during COVID-19; Job level and conducting of meeting using video conference, zoom, google meet during COVID-19; age and challenges faced for remote working during COVID-19. Insignificant relationships were tested between sector and inclusion of income tax cuts and subsidies in financial statements, education level and assessment of the Impact of COVID-19 related instability on revenue recognition and allowance for bad debts; sector and enhancement of accounting technology following COVID-19; job level and Increase of cyber security levels following COVID-19. The results concluded that COVID-19 has drastically affected inventory valuation, during the pandemic and how companies disclose and report all financial elements impacted by COVID-19. The study also concludes that COVID-19 has enabled the advancement of accounting technology, in the AP resulting in increase of cyber security levels. Companies and regulatory bodies should not ignore the impact of COVID-19 to the AP as the effects are long lasting and will continue in the long run post COVID-19.