Volume 8 (2019): … free online access to latest research in Finance, Risk and Accounting!

Special Issue Digital Accounting

ACRN Journal of Finance and Risk Perspectives
Vol. 8 ISSN 2305-7394


JOFRP_Title_New

Volume 8 / Special Issue Digital Accounting




pdf Table of Contents


pdf The Whatness of Digital Accounting: Status Quo and Ways to Move Forward

Othmar Lehner1, Susanne Leitner-Hanetseder2, Christoph Eisl2


1 University of Applied Sciences Upper Austria and
Hanken School of Economics, Helsinki, Finland

2 University of Applied Sciences Upper Austria

EDITORIAL


pdf Digital Accounting: Opportunities, Threats and the Human Factor

Shawnie Kruskopf, Charlotta Lobbas, Hanna Meinander, Kira Söderling1,
Minna Martikainen
1 and Othmar M Lehner2 (Editors)


1 Hanken School of Economics, Helsinki
2 University of Applied Sciences Upper Austria and Hanken School of Economics

Abstract: This paper gives an overview of the current and future technologies impacting accounting and auditing fields. The aim is to present the technological disruptions shaping these fields and also look at how they might influence future jobs and required skills. Starting with a historical background check on how Industry 4.0 emerged, we survey four main areas of the topic: 1) current developments supported with real-life cases, 2) a literature review of on-going research, 3) possible future job descriptions, and 4) required skills and how to acquire them.
Keywords: Digitalisation; Accounting; Auditing; Industry 4.0; Skills


pdf Big Data, Cloud Computing and Data Science Applications in Finance and Accounting


Jennifer Huttunen, Jaana Jauhiainen, Laura Lehti and Annina Nylund
1
Minna Martikainen
1 and Othmar M Lehner2 (Editors)

1 Hanken School of Economics, Helsinki
2 University of Applied Sciences Upper Austria and Hanken School of Economics, Helsinki


Abstract: The aim of this paper is to get acquainted with big data and how advanced analytical tools like data science and machine learning are helping the financial sector obtain greater insights about their businesses. Further applications also include acquiring a deeper understanding about ways to provide customers the next level experience in banking and/or investing. We have briefly touched on cloud computing as the platform to support the utilization of some of these technologies. The financial sector, including the accounting industry, will experience disruption albeit at an unknown pace. Despite the benefits derived from exploiting these emerging technologies, a slow uptake is still observed. The authors believe that a more receptive attitude towards innovative technologies could pave the way to more application in the field. Consequently, standards and regulations will evolve to keep up with these changes.
Keywords: Big Data; Data Science; Machine Learning; Analytics; Accounting; Finance



pdf Current State and Challenges in the Implementation of Robotic Process Automation and Artificial Intelligence in Accounting and Auditing

Max Gotthardt, Dan Koivulaakso, Okyanus Paksoy, Cornelius Saramo1
Minna Martikainen
1 and Othmar M Lehner2 (Editors)

1 Hanken School of Economics, Helsinki
2 University of Applied Sciences Upper Austria and Hanken School of Economics, Helsinki

Abstact: Technology development has grown rapidly in the last decades and gained importance for accounting and auditing through its identified potentials. Particularly the automation of judgment systems and systems that require human intervention, are deemed to be more relevant to confront a transformation through Robotic Process Automation (RPA). During the continuous development, the augmentation of such systems through Artificial Intelligence (AI) presents a greenfield project with high expectations. However theoretical frameworks have not yet been elaborative and sufficient to capture how such deployments can be conducted. Addressing this research gap, this study presents a summarized overview of the transforming RPA ecosystem and indicates what challenges are critical to being confronted for a successful implementation of such systems in accounting and auditing.
Keywords: Robotic Process Automation; Artificial Intelligence; Financial Technologies; Accounting; Auditing; Technology Implementation; Black Box Solutions


pdf Blockchain in the Fields of Finance and Accounting: A Disruptive Technology or an Overhyped Phenomenon?

Aino Nordgren, Ellen Weckström1
Minna Martikainen
1 and Othmar M Lehner2 (Editors)

1 Hanken School of Economics, Helsinki
2 University of Applied Sciences Upper Austria and Hanken School of Economics, Helsinki

Abstract: Blockchain technology became widely known with the emergence of Bitcoin in 2009 and has since gotten a lot of hype as a technology to disrupt the field of financial services. Blockchain was even suggested as a possible solution to UK’s border issues after Brexit. While many praise blockchain’s promise to enhance the speed and security of transactions, there are some who question the real-world applicability of blockchain. Is blockchain the internet of our time, a disruptive technology or just an overhyped phenomenon?
This paper looks at blockchain technology, its applications in the fields of finance and accounting, and the disruptive power of blockchain in these fields. We provide an overview of the criticism and obstacles that need to be dealt with for blockchain to realize its potential.
Keywords: Blockchain, Digital finance, Digital accounting, Digital Auditing, Smart contracts


pdf FinTechs: Their Value Promises and Disruptive Potential

Sara Laahanen, Eemil Yrjänä1
Minna Martikainen
1 and Othmar M Lehner2 (Editors)

1 Hanken School of Economics, Helsinki
2 University of Applied Sciences Upper Austria and Hanken School of Economics, Helsinki

Abstract: In the last few years technological advancements have occurred at a rapid pace. The financial service sector is experiencing fundamental changes due to technological advancements and digitization. Traditional financial institutions are now facing competition by fintech companies. Fintech companies are filling the gaps left by traditional financial institutions, applying technology and making financial services more efficient, intelligent and customer-oriented. Fintech solutions are also enabling financial inclusion. However, there is ongoing concern regarding regulation and trust of fintech companies.
In this paper, we will focus on how fintech have and will change the financial service sector. We will provide a better knowledge of the current and future developments of fintech and also consider some critical voices from society.
Keywords: Financial technology, Fintech, Financial industry


pdf RegTech - A Necessary Tool to Keep up with Compliance and Regulatory Changes?

Ellinor Johansson, Konsta Sutinen, Julius Lassila, Valter Lang1
Minna Martikainen
1 and Othmar M Lehner2 (Editors)

1 Hanken School of Economics, Helsinki
2 University of Applied Sciences Upper Austria and Hanken School of Economics, Helsinki

Abstract: The discussion about the need for regulation got fuelled after the latest 2008 Global Financial Crisis, with many demanding stricter policies to avoid history from repeating itself. These voices have been partly answered, as a plethora of new policies, regulations and standards has been implemented since then. Drafted under good intentions, these new rules have also shown to have detrimental consequences. Exclusion of potential customers and high barriers of entry are only the side-effects of the rapidly rising costs of compliance that the large set of new regulations have brought upon businesses. RegTechs, a new category of innovations that were before classified as part of FinTech, are tools of the future for complying with regulations. This article describes the past, current and future developments of RegTechs, present some real-life cases of current RegTech companies, and discusses their place in a world of ever-changing rules and policies.  
Keywords: RegTech, FinTech, regulation, compliance, Global Financial Crisis, internal auditing, accounting, tax regulation, GDPR, reporting


pdf Prevention and Detection for Risk and Fraud in the Digital Age – The Current Situation 

Hanna Donning, Mathias Eriksson1
Minna Martikainen
1 and Othmar M Lehner2 (Editors)

1 Hanken School of Economics, Helsinki
2 University of Applied Sciences Upper Austria and Hanken School of Economics, Helsinki

Abstract: “Fraud”, “corporate crime” and “white collar crime” are all terms used when referring to economical- and operational crimes, where fraudulent activities has occurred. Illegal acts such as asset misappropriation, business misconduct fraud, money laundering, cybercrime, tax fraud and accounting fraud are major concern, and where an increased threat has been identified.
This paper explores the possibilities new technology used in fraud detection and prevention mechanisms could provide. Furthermore, we connect the new technology mechanisms with the aspect of organizational culture, that has been proved significant in fraud risk. The contribution is twofold. First, we provide an assessment of modern approaches for fraud detection and prevention, second the insights given by the case study and previous research add encouragement and potential directions for both future research and business practice implications.  
Keywords: Fraud; Internal fraud; Advanced technology; Organization culture; Case Study 


pdf Cybercrime in a Business World: Behavioral Perspectives

Böckelman Petter, Björkman Henrik1
Minna Martikainen
1 and Othmar M Lehner2 (Editors)

1 Hanken School of Economics, Helsinki
2 University of Applied Sciences Upper Austria and Hanken School of Economics, Helsinki

Abstract: As we are living in a fast-growing digital age it is crucial to keep in mind risks related to digitalization. The current digital work environment enables cybercrime and the practice of cybercrime has become more and more common. Because of the fast digitalization of our society many people miss out on important parts such as cyber security and only focus on development. This means that social behaviour is a big issue when it comes to cybercrime and cyber security.
This work explores cybercrime in a business world with a focus on social behaviour. It explains how big an impact social behaviour has on cybercrime and it also explains how you can protect yourself of becoming a victim of cybercrime.
Keywords: Cybercrime; Social behaviour; cyber security; Social engineering