FINAL YEAR PROJECT

(RESEARCH PROPOSAL)

“THE IMPACT OF COMPUTER TECHNOLOGY ON ACCOUNTING

SYSTEM AND IT’S EFFECT ON EMPLOYMENT.”

Class of Business in Finance and Risk Management

SITI AFIQAH BINTI HAJI SULEIMAN B20182246

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TABLE OF CONTENT

1. INTRODUCTION ....................................................................................................... 2

1.1 Background of study ............................................................................................. 3

1.2 Objective of the research ...................................................................................... 4

2. LITERATURE REVIEW .............................................................................................. 4

2.1 Introduction ........................................................................................................... 4

2.2 Literature review ................................................................................................... 4

3. RESEARCH METHODOLOGY .................................................................................. 8

3.1 Sources of Research data .................................................................................... 8

3.2 Research Questions ............................................................................................. 8

4. TIMETABLE ............................................................................................................... 9

5. REFERENCES ........................................................................................................ 10

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1. INTRODUCTION

The concept of accounting can be defined as the art of recording, classifying, and

summarizing in a significant manner in terms of money, the transaction and events

which can be a part of a financial character and interpreting the amounts, figures, and

other data in the financial reports that have meaning that is useful to the users. These

days the knowledge of accounting concepts is very important as SMEs are

mushrooming in Brunei. Even though they are only a small enterprise, it is efficient for

them to apply the accounting concept to their business. By understanding how

computer and internet use does affect individual workers at the task and their skills

which can help the organization and manager to improve the design of business

processes and job tasks (Ming Fan et al, 2006)

Computer technology addresses the application of computers and other

telecommunications devices for data storage, retrieve, transmit, and manipulate data.

Typically, the most simplified computer technology that is used by an accountant would

have a spreadsheet application, such as Microsoft Excel. As the program has a variety

of functions available that can make them perform all operations more efficiently and

keep track of the information. Furthermore, there are also varieties of computer

technology that have been successfully introduced such as the use of payroll system,

billing system, controlling the inventories, predicting the performance in which different

businesses are using their industry-specific application to perform the reports.

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The accountants were faced with delays in the processing and reporting of transaction,

continuous errors and misstatement, and difficulty in storing large data on papers.

However, by the introduction of IT tools, accountants are now able to prepare and

present financial statements more timely and accurately (Imene et al, 2020). Therefore,

it does not mean that paper-based files or manual accounting are obsolete but this

technology advancement can enhance and upgrade the process of accounting concepts

in business operations. Through the use of computer and internet use can affect the

employees’ productivity in the workplace (Ming Fan et al, 2006). Nonetheless, while

technology has come to make life easier and is improving its production and efficiency

in organizations, employees may face problem that has become a threat to job security.

Those with high skill job have been on the rise while low skilled jobs have experienced

decline.(Agbozo E et al, n.d.)

1.1 Background of study

In the presence of the pandemic covid-19, there is a realization on the adaption of the

computer technology system this also includes accounting as it gives the company the

added value to be more efficient and effective. Thus, I have come up with an intention

on how this computer technology gives effect to the company its employees. This

research is specifically aiming for Bruneian business operations and to know whether

Bruneian can adapt to the development of this technology. Hence the outcome of this

study would be to linkage for the accounting concept with the use of computer

technology for business in Brunei and how it influences employment opportunity.

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1.2 Objective of the research

To specify, the objective of this study attempt to find out the efficiency and effectiveness

of applying an advancement of computer technology towards the accounting concept in

each business as it is now significantly necessary for both businesses and employees.

This study also identifies the factor improvement and limitation towards businesses with

the use of computer technology in the field of accounting.

2. LITERATURE REVIEW

2.1 Introduction

This chapter will demonstrate the research on the impact of computer technology on the

accounting system and how it can influence the employees on this matter. However, the

purpose of this study is to review a few of these studies as they related to the current

discourse.

2.2 Literature review

Mohd Sam et al. (2012) mentioned 'The adoption of Computerized Accounting System

in Small Medium Enterprises in Melaka, Malaysia”. With the introduction of new

technology and more user-friendly software, a computerized accounting system (CAS)

appears to reduce the problems that arise in book record-keeping practice. The

adaptation of a computerized accounting system (CAS) will determine the success of a

business organization. This study shows a major role in achieving Malaysia’s aspiration

to become a fully developed nation that SMEs need to consider implementing this

technology.

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Ming Fan et al. (2006) examines “how do computer and internet affect employees

compensation” which the study aims to explain the mechanism through which

computers affect wage structures in the U.S. Specifically, it aims at the effects of

computer and internet use and task complementarity, generic versus specialized

computer tools, and changes in the workplace. One of the major results suggests that

the effect of computer and internet use on wages largely depends on the change in

work practices that accompany technology use. By understanding how computer and

internet use does affect individual workers at the task and their skills which can help the

organization and manager to improve the design of business processes and job tasks.

Therefore, it is critical for companies to develop appropriate incentives and wage

structure for the workers.

This study conducted by Mkb Zenuni, Mpat Begolli & M Ujkani (2014) examined the

“impact of information technology in the accounting profession” on how this technology

affects the accounting profession in the same way as it has affected every aspect of

daily life humanity. A professional accountant has the responsibility to judge not only

about recording transactions but also the importance of accounting information.

Therefore, they must have knowledge about IT because of their increased career

opportunity with a minimum level of computer skills, accounting skills combined with

computer knowledge, advanced computer skills in accounting, and knowledge of new

development in the accounting field. Some of the main reasons for accountants knowing

the importance of IT are often asked to evaluate the effectiveness and efficiency of the

existing system and IT also can affect their work in the future.

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Dandago and Rufai (2014) did research on the “Information technology and accounting

information system in the Nigerian Banking Industry”. There are arguments through the

findings that the use of information technology can improve performance by reducing

operational cost, facilitating transactions, relevant in sampling issues, and in the

provision of quality information, and thereby recommends that Nigerian banks should

invest more in IT tools for efficient service delivery and profitability.

L Kloviene et al (2015) did a study titled “The effect of information technology on

accounting system’s conformity with the business environment: A case study in banking

sector company”. This article highlights the differences between the use of the

accounting system in a static or dynamic external environment and the simplistic or

absorption internal reaction of an organization. It could be stated that information

technology affects the accounting process in several ways such as an accountant has

to better understand the flow of transactions and related control activities to ensure the

validity and reliability of the information. Hence, information technologies used and

implemented in the accounting system of an organization could help to adapt to

changes in the business environment. Which in this aspect, it could be stated that

information technology could help to improve the functions of the accounting system in

the organization when it is not compatible with the business environment.

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Also, a study conducted by Friday Imene et al (2020) are based on the “information

technology and the accountant today: what has changed?” The study discussed on how

IT has affected the accountancy profession. In this Pre-IT era, accountants were faced

with delays in transaction processing and reporting, continuous errors and misstatement,

and difficulty in storing large data on papers. However, by the introduction of IT tools,

accountants are now able to prepare and present financial statements more timely and

accurately. The availability of the internet has also increased access to financial reports

by external users. The study identified several ways that IT has improved the

accounting process. Furthermore, with technological advancements such as cloud

computing, artificial intelligence, and virtual reality (VR) and augmented reality (AR)

finding their way into the accounting profession, and the resulting big data, accountants

in the future will require more than financial literacy (basic accounting knowledge) to

meet their professional demands. Therefore, accountants must begin to think about IT,

and invest in IT skills and tools, have a significant role to play in the increasingly

connected and interconnected business environment.

Finally, the study conducted by Maziyar Ghasemi et al (2011) examined “The impact of

information technology (IT) on modern accounting system”. The biggest impact IT has

made on accounting is the ability of companies to develop and use a computerized

system to track and record financial transactions. By using the system it allows them to

create individual report quickly and easily for management decision making. Using this

advancement in technology information, accountants also required to gain the skills to

use computerized systems to ease the accounting processes and have brought a

chance for companies to progress towards paperless offices.

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3. RESEARCH METHODOLOGY

3.1 Sources of Research data

The sources of research data include a combination of both primary and secondary data

gathered as; the primary data for this research will be gathered through the distribution

of questionnaire to selected respondents. Due to the outbreak of covid-19 it is difficult to

conduct an interview face-to-face and the responded deliberately may hides information

Thus, for this research will only be distributing questionnaire that the questions will be

selected from several of previous studies conducted or any related, about the scope for

this studies. As for the secondary data will be collected from several sources of data

such as books, records, newspapers, internet articles, journals or those that are related

to the study conducted.

3.2 Research Questions

In order to address the research problem, the following questions would be

administered:

1) What is the impact of computer technology on the accounting system?

2) What impact does computer technology have on employment in the accounting field?

3) What are the factor limiting the use of computer technology in the field of accounting?

4) Has computer technology made the accountant’s job easier?

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4. TIMETABLE

The Gantt chart below shows the expected timeline of the Final Year Project throughout

the year, from the research proposal until the final report that due by May 2021.

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5. REFERENCES

Edita, L. K. (2015, December 24). The Effect of Information Technology on Accounting

System's Conformity with Business Environment: A Case Study In Banking
Sector Company. Retrieved from sciencedirect:
https://www.sciencedirect.com/science/article/pii/S2212567115014768

Imhanzenobe, F. I. (2020, March). Information technology and the accountant today:

What has really changed? Retrieved from researchgate.net:
https://www.researchgate.net/publication/340225497_Information_technology_an
d_the_accountant_today_What_has_really_changed

Li, F. P. (2013, December). Impact of Information Technology on Accounting Systems.

Retrieved from pdfs.semanticscholar.org:
https://pdfs.semanticscholar.org/5182/17a29ed94a1ec3d87e975d5d77302d3141
84.pdf (Impact of Information Technology on Accounting Systems)

Maziyar Ghasemi, V. S. (2011). The impact of Information Technology (IT) on modern

accounting. Retrieved from core.ac.uk:
https://core.ac.uk/download/pdf/82406322.pdf

Melanie. (2019, June 10). The Changing Role of Accountants: How Technology has
Changed The Accounting Industry. Retrieved from unleashedsoftware.com:
https://www.unleashedsoftware.com/blog/changing-role-accountants-technology-
changed-accounting-industry

Ming Fan, M. F. (2006, september). How Do Computers and Internet Affect Employee.
Retrieved from citeseerx.ist.psu.edu:
https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.483.930&rep=rep1&ty
pe=pdf

Mohd sam, M. ,. (2012, September 16). The Adoption of Computerized Accounting

System in Small Medium. Retrieved from sci-hub.do: https://sci-
hub.do/10.5539/ijbm.v7n18p12

Pepe, A. A. (2011, April 19). The Evolution of Technology for the Accounting Profession.
Retrieved from cpapracticeadviso:
https://www.cpapracticeadvisor.com/home/article/10263076/the-evolution-of-
technology-for-the-accounting-profession

Rufai, K. I. (2014). INFORMATION TECHNOLOGY AND ACCOUNTING

INFORMATION. Retrieved from aessweb: http://www.aessweb.com/pdf-
files/aefr-2014-4(5)-655-670.pdf

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What is accounting. (2020, october 3). Retrieved from accountingverse.com:
https://www.accountingverse.com/accounting-basics/what-is-accounting.html

Zenuni, B. &. (2014, June). Impact of information technology in the accounting

profession. Retrieved from researchgate.net:
https://www.researchgate.net/publication/294890069_Impact_of_information_tec
hnology_in_the_accounting_profession

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