ICAN Uyo The Future of Accounting Profession Embracing AI and Blockchain Technology - Prof Oyedokun.pptx

Being a Paper Presented at the International Accounting Day Webinar of ICAN Uyo & District Society Held on Sunday, November 10, 2024.

1. The Future of Accounting Profession: Embracing AI and Blockchain Technology Being a Paper Presented at the International Accounting Day Webinar of ICAN Uyo & District Society Held on Sunday, November 10, 2024 . Prof. Godwin Emmanuel Oyedokun Professor of Accounting and Financial Development Department of Management & Accounting Faculty of Management and Social Sciences Lead City University, Ibadan, Nigeria Principal Partner; Oyedokun Godwin Emmanuel & Co (Accountants, Tax Practitioners & Forensic Auditors)

2. ND (Fin), HND (Acct.), BSc. (Acct. Ed), BSc (Fin.), LLB., LLM, MBA (Acct. & Fin.), MSc. (Acct.), MSc. (Bus & Econs ), MSc. (Fin), MSc. ( Econs ), Ph.D. (Acct), Ph.D. (Fin), Ph.D. (FA), CICA, CFA, CFE, CIPFA, CPFA, CertIFR , ACS, ACIS, ACIArb , ACAMS, ABR, IPA, IFA, MNIM, FCA, FCTI, FCIB, FCNA, FCFIP, FCE, FERP, FFAR, FPD-CR, FSEAN, FNIOAIM, FCCrFA , FCCFI, FICA, FCECFI, JP Prof. Godwin Emmanuel Oyedokun Professor of Accounting and Financial Development Department of Management & Accounting Faculty of Management and Social Sciences Lead City University, Ibadan, Nigeria Principal Partner; Oyedokun Godwin Emmanuel & Co (Accountants, Tax Practitioners & Forensic Auditors)

3. The Future of Accounting Profession: Embracing AI and Blockchain Technology

4. Contents

5. The Future of Accounting Profession: Embracing AI and Blockchain Technology TO

6. The Changing Landscape of Accounting Shift Towards Automation Routine accounting tasks, such as data entry, bookkeeping, and financial reporting, are increasingly being automated through AI-powered software solutions. This frees up accountants to focus on higher-value strategic advisory roles, driving greater efficiency and productivity within firms. Demand for Data-Driven Insights Clients are now seeking accountants who can leverage data analytics and AI to provide real-time, data-driven insights that inform critical business decisions. Accountants must develop new skills to extract, analyze, and interpret complex financial data to deliver actionable intelligence. Blockchain's Transformative Impact Blockchain technology is poised to revolutionize the way financial transactions are recorded, verified, and audited. By establishing a secure, transparent, and decentralized ledger, blockchain has the potential to streamline and automate various accounting processes, reducing errors and enhancing trust.

7. The Rise of Artificial Intelligence in Accounting 1 Automation of Repetitive Tasks AI-powered software can automate mundane tasks such as data entry, bank reconciliations, and invoice processing, freeing up accountants to focus on more strategic and advisory responsibilities. 2 Advanced Data Analytics AI-driven data analytics can uncover hidden patterns, trends, and anomalies within financial data, enabling accountants to provide deeper insights and make more informed decisions. 3 Predictive Modeling AI algorithms can analyze historical data to predict future financial performance, cash flow, and risk, allowing accountants to proactively advise clients on strategic planning and risk management.

8. Automating Routine Tasks and Improving Efficiency 1 Data Extraction AI-driven software can automatically extract and compile financial data from various sources, reducing the time-consuming manual data entry process. 2 Intelligent Process Automation AI-powered bots can streamline and automate repetitive accounting tasks, such as invoicing, payroll processing, and expense management, improving overall operational efficiency. 3 Audit Assistance AI algorithms can analyze large datasets, identify anomalies, and flag potential issues, enhancing the accuracy and effectiveness of audit processes.

9. Predictive Analytics and Enhanced Decision-Making 1 Fraud Detection AI algorithms can analyze transaction patterns and identify potential fraudulent activity, enabling proactive risk management. 2 Cash Flow Forecasting Predictive analytics can help accountants anticipate cash flow fluctuations, allowing for better liquidity management and investment planning. 3 Scenario Planning AI-driven simulations can model the impact of various financial scenarios, empowering accountants to make more informed, data-driven decisions.

10. Blockchain Technology and Secure Financial Transactions Transparent and Immutable Ledger Blockchain technology creates a secure, transparent, and decentralized digital ledger that records all financial transactions, providing a tamper-proof record of every activity. Smart Contracts Blockchain-based smart contracts can automate various accounting processes, such as invoice generation, payment processing, and contract management, reducing the potential for errors and delays. Enhanced Auditing Capabilities The transparent and immutable nature of blockchain data can significantly improve the efficiency and reliability of auditing processes, as all financial transactions are recorded on the distributed ledger.

11. The Blockchain Revolution: Transforming Financial Processes Secure Transactions Blockchain's decentralized, tamper-resistant nature enhances the security and integrity of financial transactions. Increased Transparency The distributed ledger technology of blockchain provides a transparent record of all financial activities. Improved Efficiency Blockchain-based smart contracts can automate and streamline various financial processes, reducing manual interventions. Cost Savings Blockchain's decentralized structure can eliminate the need for intermediaries, leading to significant cost savings.

12. Auditing and Compliance in the Blockchain Era Automated Audit Trails Blockchain's distributed ledger provides a continuous, tamper-resistant record of all financial transactions, simplifying the audit process. Smart Contract Compliance Blockchain-based smart contracts can automatically enforce regulatory requirements, reducing the risk of non-compliance. Real-Time Monitoring Auditors can continuously monitor blockchain-based financial activities, enabling proactive identification and resolution of issues.

13. Automation of Repetitive Tasks and Increased Efficiency 1 Data Entry Automation AI-powered optical character recognition (OCR) can automatically extract data from documents, eliminating the need for manual data entry. 2 Automated Reconciliation AI algorithms can quickly identify and resolve discrepancies in financial records, streamlining the reconciliation process. 3 Compliance Reporting Automated tools can generate regulatory reports, ensuring accurate and timely compliance with evolving financial regulations.

14. Predictive Analytics and Enhanced Decision-Making 1 Fraud Detection AI algorithms can analyze transaction patterns and identify potential fraudulent activity, enabling proactive risk management. 2 Cash Flow Forecasting Predictive analytics can help accountants anticipate cash flow fluctuations, allowing for better liquidity management and investment planning. 3 Scenario Planning AI-driven simulations can model the impact of various financial scenarios, empowering accountants to make more informed, data-driven decisions.

15. Implications for Accounting Careers and Skillsets Data Analytics Accountants must develop proficiency in data analytics, data mining, and business intelligence to extract insights from financial data and provide strategic advisory services. AI Integration Understanding how to leverage AI-powered tools and technologies to automate tasks, improve efficiency, and generate predictive insights will be a crucial skill for future accountants. Blockchain Expertise Accountants must familiarize themselves with the principles and applications of blockchain technology, including its impact on financial transactions, auditing, and regulatory compliance. Strategic Advisory As automation and technology streamline traditional accounting tasks, accountants will need to shift their focus towards providing high-value strategic advisory services to clients.

16. Ethical Considerations and Regulatory Challenges Ethical Concerns The increased use of AI and blockchain in accounting raises ethical questions, such as data privacy, algorithmic bias, and the potential displacement of jobs Accountants must carefully navigate these issues and ensure the ethical implementation of these technologies. Regulatory Adaptation As the accounting landscape evolves, regulatory bodies must adapt to provide clear guidelines and standards for the use of AI, blockchain, and other emerging technologies Accountants will need to stay informed and compliant with these changing regulations. Workforce Transformation The integration of AI and blockchain will dramatically reshape the accounting profession, requiring accountants to continuously upskill and acquire new competencies Firms must invest in training and development to ensure their workforce is equipped to thrive in the digital age.

17. Case Studies: How Leading Firms are Adapting Firm AI Integration Blockchain Adoption Deloitte Automated data extraction, intelligent process automation, AI-powered audit assistance Piloting blockchain-based smart contracts for supply chain financing and auditing PwC AI-driven data analytics to provide real-time insights and predictive modeling for clients Developing blockchain-based solutions for cross-border payments and asset tracking KPMG Leveraging AI to automate routine tasks and free up accountants for higher-value work Exploring the use of blockchain for audit trail management and fraud detection

18. Conclusion

19. Recommendations

20. Prof. Godwin Emmanuel Oyedokun Professor of Accounting & Financial Development Lead City University, Ibadan, Nigeria Principal Partner; Oyedokun Godwin Emmanuel & Co (Accountants, Tax Practitioners & Forensic Auditors) [email protected]; [email protected] [phone] & 2348055863944