Question

“The IoT has the potential to revolutionize the way businesses gather data—and, in the process, transform many aspects of accounting and auditing.”

Please explain three justifications for your stance (agree or disagree).

Answer 1

I agree with the statement.

Three justifications for my stance:

· Accounting function and auditing will become more systematic on an overall basis as accountants and auditors will be in a position to receive all associated financial and accounting data through a digital system and hence the need to go to a bookkeeper will get eliminated.

· Auditors will get access to real time transactional data and this will allow for a risk evaluation that will be wider in scope as well as more comprehensive in scope.

· IoT will change bring about a change in the sources of transactional data that flows into billing, into ERP (i.e. enterprise resource planning) and into accounting system. Hence it will potentially alter the way audit of these transactions will be carried out.