Impediments to Blockchain Adoption

Satoshi Nakamoto (2008) published a seminal paper on a promising digital currency application and proposed a distributed ledger technology (DLT) to support it. Shortly thereafter, in 2009, bitcoin and the customized DLT that supports it were established. Although the DLT described by Nakamoto (2008), which packages data into blocks that are then cryptographically chained together (i.e., "block chain", or "blockchain"), possesses features that are desirable for some business applications and/or their auditors, over a dozen years later there is not yet a widescale adoption of blockchain for business operations. This paper explores functionality, data and process integrity, and regulatory concerns as potential explanations for the lag in mainstream business and accounting adoption. We also contextualize some of the concerns that are likely to have delayed blockchain implementation by providing a framework of questions directed at both researchers and practitioners.

Has Excel Become a "Golden Hammer": The Paradox of Data Analytics in SME Clusters

Demand for data analysis skills in the accounting profession is well documented and necessarily informs accounting curriculum and pedagogy. This empirical survey study focuses on small and medium-sized entities (SMEs), finding SMEs continue to use Excel spreadsheets extensively for data analytics tasks. SME cluster research suggests different adoption rates for technology between this segment and large firms. Investigating SME demands for skills and abilities of new job entrants differs from the large organizations that served as the original drivers of analytic skills and technology recommendations. Findings in this study suggest SMEs continue performing their leading accounting tasks using Excel spreadsheets, and lag in adoption of data analytics technology. SMEs are a significant business sector comprising 95-99 percent of firms in the U.S. economy, creating 65 percent of new jobs from 2000-2018 (USSBA 2019), and competing with large firms but with fewer resources. These findings will guide educators in SME markets.

Automation at Truveil: Business Process Understanding and Analysis in RPA Implementation

In the process of automation implementation, it is critical for management and employees to have skills in understanding, identifying, and documenting the relevant business processes. To equip students with these skills, we employ an authentic business scenario from the Truveil, a toy company. In 2021, Truveil (a pseudonym) had operations in more than 15 countries. In this teaching case, we explain the business process of the company's Singapore office. This case provides students with the opportunity to map a business process before and after automation, understand the challenges the company faced in implementing automation, and apply critical thinking to business process automation.

Blockchain’s Impact on Accounting and Auditing: A Use Case on Supply Chain Traceability

We use the transaction cost theory, originally proposed by Coase (1937), as a theoretical framework to examine the potential impact of the blockchain technology on accounting and auditing processes in terms of information timeliness, information quality, and auditing costs. Since a blockchain enables recording, tracking, and managing business transactions and assets of firms, it offers natural advantages to accounting and auditing processes, and has the potential to lower various transaction costs. A use case on a supply chain of food products is presented to illustrate how a blockchain can be used to trace the movement of goods and record the related transactions. Subsequently, building on this scenario, we use the transaction cost framework to generate propositions related to accounting and auditing that can be empirically tested in future studies as data become available.

Teaching Business Transaction Cycles Using a Hands-on Activities Approach

We present a novel hands-on approach for teaching students the concepts and business processes of transaction cycles. Specifically, the hands-on activities focus on sales and procurement cycles. Upon completion of the hands-on activities, students will a) develop a better understanding of the business processes and business forms for sales and procurement cycles and b) build relevant critical thinking skills. We evaluate students’ learning by providing a comparison between students who learned the concepts of transaction cycles and business processes and performed the transaction cycle hands-on activity in class versus those students who only learned the concepts of transaction cycles and business processes in class. Although the hands-on activities were used in an accounting information systems class, they can also be applied to other business disciplines, such as engineering and project management classes.

Advancing Financial Reporting in the Age of Technology: An Interview with Robert H. Herz

ABSTRACT This paper is based on an interview on January 9, 2020, with Robert H. (Bob) Herz, the former two-term chairman of the Financial Accounting Standards Board, on how the environment for business reporting has evolved and how it may continue to evolve. Bob Herz has also held decision-making positions as a part-time member of the IASB and on the board of the SASB. In this interview, we discuss a pragmatic reporting model suited to the era of Big Data and technology. We also explain the different interests of the reporting process, including the standard-setters, preparers, auditors, and users. The main idea of this paper focuses on how to incorporate Big Data and technology into reporting models working within the current framework and needs of the stakeholders. We then outline several use cases that illustrate a refined reporting model using Big Data and technology.

The Transformation of Government Accountability and Reporting

ABSTRACT This paper advocates for a drastic transformation of government accountability and reporting. With the availability of Big Data and the advancement of technologies, the existing government reporting schema fails to meet the public's increasing demand for accountability. We discuss the need for the government to reform its reporting schema and prescribe potential paths toward a data-driven, analytics-based, real-time, and proactive reporting paradigm. We conceptualize an app-based continuous monitoring and reporting environment that is real-time, structured, future-oriented, and that incorporates non-financial information like ESG and infrastructure. This reformed reporting paradigm highlights the expected role of government reporting: to provide accountability to the public.

Artificial Intelligence Applications in the Auditing Profession: A Literature Review

This paper investigates some essential questions that might interest auditors regarding the impact of artificial intelligence (AI) applications on the auditing profession by reviewing a selective bibliography of papers published mainly between 2016 and 2020. It discusses the major AI applications in the auditing field and explores the associated benefits in increasing auditing work’s effectiveness, efficiency, and quality. It further illustrates the major internal critical considerations that should be taken into account before AI application adoption in auditing practices, from initial decision-making to the use of proper countermeasures, to ensure the successful and effective implementation of AI applications. The extent to which AI applications in the accounting and auditing field might affect current hiring practices and threaten an auditor’s job, as performed today, is discussed and various debates and contradictory opinions are presented. The major AI applications adopted by the Big Four accounting firms are also discussed.