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Big Data Analytics: Opportunity or Threat for the Accounting Profession?

Authors:
Greg Richins at University of Waterloo
Greg Richins
Andrea Stapleton at Memorial University of Newfoundland
Andrea Stapleton
Theophanis C. Stratopoulos at University of Waterloo
Theophanis C. Stratopoulos
Christopher Wong
Christopher Wong
Christopher Wong
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Abstract

Contrary to Frey and Osborne's (2013) prediction that the accounting profession faces extinction, we argue that accountants can still create value in a world of big data analytics. To advance this position, we provide a conceptual framework based on structured/unstructured data and problem-driven/exploratory analysis. We argue that accountants already excel at problem-driven analysis of structured data, are well positioned to play a leading role in the problem-driven analysis of unstructured data, and can support data scientists performing exploratory analysis on big data. Our argument rests on two pillars: accountants are familiar with structured data sets, easing the transition to working with unstructured data, and possess knowledge of business fundamentals. Thus, rather than replacing accountants, we argue that big data analytics complements accountants' skills and knowledge. However, educators, standard setters, and professional bodies must adjust their curricula, standards, and frameworks t...
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Big Data Analytics: Opportunity or Threat for the Accounting Profession? by Greg Richins, Andrea Stapleton, Theophanis C. Stratopoulos, Christopher…
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Big Data Analytics: Opportunity or Threat for the Accounting Profession?
40 Pages
Posted: 15 Sep 2016
Last revised: 24 May 2017
Greg Richins (https://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?
per_id=1865375)
University of Waterloo - School of Accounting and Finance
Andrea Stapleton (https://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?
per_id=2295873)
University of Waterloo - School of Accounting and Finance
Theophanis C. Stratopoulos
(https://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=582572)
University of Waterloo - School of Accounting and Finance
Christopher Wong (https://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?
per_id=1922796)
University of Waterloo - School of Accounting and Finance
Date Written: September 10, 2016
Abstract
Contrary to Frey and Osborne’s (2013) prediction that the accounting profession faces extinction, we argue that accountants can still create value in a world of big
data analytics. To advance this argument, we provide a conceptual framework based on structured/unstructured data and problem driven/exploratory analysis. We
argue that accountants already excel at problem driven analysis of structured data, are well positioned to play a leading role in the problem driven analysis of
unstructured data, and can support data scientists performing exploratory analysis on big data. Our argument rests on two pillars: accountants are familiar with
structured data sets, easing the transition to working with unstructured data, and possess knowledge of business fundamentals. Thus, rather than replacing
accountants, we argue that big data analytics complements accountants’ skills and knowledge. However, educators, standard setters, and professional bodies must
adjust their curricula, standards, and frameworks to accommodate the challenges of big data analytics.
Keywords: big data, data analytics, job automation, managerial accounting, financial accounting, auditing
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