ST.

DOMINIC SAVIO COLLEGE

College of Arts, Sciences, and Education
Blk. 1, Lot 6, Mountain Heights Subdivision, Quirino Highway, Caloocan City

Name: ABDULSALAM AKEEM OLALEKAN

The Impact of Technology on Financial Reporting and Auditing

Practices in amazon Philippines.
K E YW OR DS

INTRODUCTION

“TECHNOLOGY IN FINANCIALREPORTING “
In this modern day, the effects of technology are clearly felt on all
professions all over the world. Technological developments have made the
processes of professions more effective and easier in all aspect with the
introduction of technology. In few years to come the accounting profession
will go through radical changes; it will become a very different profession
than we see today. The last past years, the technology have brought many
improvements in the service capabilities and efficiency of the accounting
profession. Professionals work in a very different way compared to 20
years ago. Document management systems that emerged in the late 90s
for the accounting profession; particularly File Cabinet CS and later
GoFileRoom, made possible to make transactions without the use of
paper (Baron, 2017). In 2001, personal customer portals were introduced
by Thomson Reuters (Thomson, 2001). Due to these portals, customers
can be provided with 7 days and 24hours service without delays and less
stress for accounting officer / bookkeepers .Much betters communication
and cooperation regardless of the location. Internet, telephone and
introduction of social media have had a great impact on how companies
works today.

Since the beginning of the 21st century, there is no doubt

that humanity has made a huge step forward in the field of
robotics. Although modern robots today adequately simulate
human movements and actions, the next task facing specialists is to train
robots to think independently and respond to
changing conditions (Kopec & Lucci, 2015). Experts in the
field of artificial intelligence promise to give the machine
the ability to think analytically through advances in computer science,
robotics, and mathematics (Barjatya, 2004).
Although until now accountants have not been able to
fully realize the potential of artificial intelligence, this technology may have
a significant impact on accounting profession in
the coming years. Artificial intelligence technologies open up
the prospect of natural human–machine interaction (Jackson,2013). If
machines become intelligent, they will understand queries, identify
relationships between data, and draw conclusions and analyze accounting
problems and will be able to reason, observe, and plan. In next 20 years,
financial reporting will see a stronger changes thanks to machine learning,
artificial intelligence, AI block chain, and big data usage. With the
convergence of artificial intelligence and block chain, it is now clear that in
the near future the work of the accounting profession will be supported by
automation and make financial reporting and auditing easier. Thus, the aim
of the study to introduce the effects of technological changes and
transformations on the future of financial reporting. The study first
introduces technological tools and provides an over view of the advantages
and drawbacks of technological changes to financial reporting. Then, the
study provides a case of Amazon Philippines to display the transformation
of financial reporting with the technological changes in the society .
Machine learning and deep learning are areas of research in the field of
artificial intelligence, studying methods of constructing algorithms that can
be trained (Makkar, 2014). It uses neural network techniques, statistics,
operations research, and so forth, to identify hidden useful information in
the data. it does not explicitly program instructions that indicate where to
look for data and how to draw conclusions. The neural network is one of
the methods of machine learning. This is a mathematical model, as well as
its software or hardware implementation, built on the principle of
organization and functioning of biological neural networks—networks of
nerve cells of a living organism(Thornton & Du Boulay, 1998). Common
applications include image and speech recognition.

1. Computer vision relies on pattern recognition and deep learning for

image and video recognition. Machines are already able to process,
 analyze and understand images, as well as take photos or videos and
interpret the environment.

2. Natural language processing is the ability of computers to analyze,

understand, and synthesize human language, including spoken language.
Now we can control computers using the usual language used in everyday
life. For example, using Siri, Google assistant or Alexa for Amazon users.

Although machine learning is based on the idea that computers should

learn and adapt according to practical experience, the concept of artificial
intelligence can be interpreted much more broadly, implying that computers

can take a “smart” approach to the task at hand Progress

Although machine learning is based on the idea that computers should
learn and adapt according to practical experience, the concept of artificial
intelligence can be interpreted much more broadly, implying that computers
can take a“smart”approach to the task at hand (Jones, 2009). Progress has
brought artificial intelligence closer to the original goal of its development—
the creation of intelligent devices that are adapted to work in our daily lives.
From displaying recommendations on the website of your favorite online
store to automatic tagging to photos in social networks, many familiar
online features already use artificial intelligence.

Technological changes offer many opportunities to

increase the productivity of accountants. It provides more
information and adds more value to businesses. In the long
run, technological changes take on the decision-making tasks
that have already been made by people. Today, artificial intelligence
systems are developing very strong and fast. It pro-
vides highly precise, substitutable and in some cases, far
beyond human efforts. With artificial intelligence, we can ask
devices any questions about sales, inventory, customer loyalty, fraud cases,
and more and it will provide answers in lesser time (Chopra, 2012).

Computers can also find and provide us with information that

we never thought its very important in financial reporting and analysis. They
will be able to create a summary of our data and offer different ways to
analyze accounting problems in the company. In addition, we can share
information related to previous questions from us or other people who have
asked similar questions. We get answers on the screen, or the device says
the answers out loud.

Block chain is a distributed database that stores information about all

transactions of the system participants in the
form of a “chain of blocks.” Access to the register is available
to all users of the block chain, acting as a collective notary,
which confirms the truth of the information in the database. It
can be used for financial transactions, user identification, creation of
cybersecurity technologies, and so forth. Block chain
technology is able to transform established business processes
and radically change the work with regulators. Nevertheless,
it remains an experimental technology many problems of its
use have not been solved yet. Interest in block chain continues to grow:
back in 2016,many banks ,Organizations, exchanges, and Fintech
companies announced, the launch of their own projects for the
development of technology.
Block chain remains one of the hottest topics in the
financial services and stock markets, and there is every rea-
son to expect the growth rate of its spread (Beke, 2010).
Several large financial institutions have formed teams to
explore the possibilities of technology, and some market par-
ticipants have joined in consortia to develop standards for its
use. The technology is really capable of protecting the data
that we have to work with, while making it more accessible
and transparent. In addition, it can significantly reduce costs
and minimize the time required to solve problems and elimi-
nate errors (Leung, 2012).
Block chain implementation is by definition a complex
process, but the basic idea of the technology is simple: a dis-
tributed registry or database running simultaneously on many
(sometimes millions) nodes distributed around the world