Nasemani Nathole Benjamin, Nizeyimana Jean Baptiste
Digitalization is fundamentally reshaping the accounting profession and the design, implementation, and operation of internal control systems. Technologies including robotic process automation (rpa), cloud computing, artificial intelligence (ai), blockchain, and continuous monitoring systems are transforming traditional accounting practices—moving them from periodic, retrospective, manual processes toward real-time, forward-looking, automated workflows. Yet despite rapid technological adoption, substantial gaps remain between technological potential and realized benefits, with evidence of implementation challenges, control deficiencies, and unanticipated risks. This study addresses the central research problem: what is the impact of digitalization on accounting practices and internal control systems, and how can organizations maximize benefits while managing emerging risks? Employing a sequential mixed-methods design over 12 months, i conducted 28 semi-structured interviews with chief financial officers (cfos), controllers, internal auditors, and it audit managers across 22 organizations (ranging from 100millionto100millionto50 billion in revenue) spanning six industry sectors. I supplemented interview data with a survey of 312 accounting and audit professionals measuring technology adoption levels, perceived impacts on accounting practices (efficiency, accuracy, timeliness, insight quality), and internal control effectiveness (preventive vs. Detective controls, segregation of duties, audit trails, monitoring frequency). Quantitative data were analyzed using descriptive statistics, factor analysis, and multiple regression.The results reveal five primary impacts of digitalization on accounting practices: (1) transaction processing efficiency increased by 65-85% for rpa-deployed processes (invoice processing, reconciliation, intercompany matching) with corresponding error reduction of 45-60%, (2) financial close cycle time decreased from average 8.2 days to 3.4 days (58% reduction) for highly digitalized organizations, (3) real-time reporting capabilities enabled…
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