Big data in accounting
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Σωτηροπούλου, Βιργινία Αθανασία
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Abstract
In this dissertation we try to examine the relationship between Big data and accounting. In order to reveal this relationship, we initially refer to the changes in accounting due to the increased volume of information that has occurred because of the progress of communication and IT systems during the last two or three decades. These radical changes have also affected the accounting standards. Additionally, the integration of Big Data in accounting curriculum has an important impact in auditing. Specifically, the data sources have changed both in accounting and auditing. The quantity and the quality of the information are totally different because of Big Data. The processing did not remain the same, as the accounting and auditing processing methods have evolved technologically (hardware and software). The progress in accounting and auditing was also achieved by quantitative modeling taking into account the following models: A) model of financial distress, B) model of financial fraud and C) model of stock market prediction and quantitative modelling. Then, the dissertation examines four very significant case studies that demonstrate the way that the «Big 4 Accounting firms» use Big Data in auditing and consequently in accounting. The first case study is about Deloitte Touche Tohmatsu Limited which is the biggest firm from the «Big 4 Accounting firms» and it provides tax, consulting, audit and assurance, mergers and acquisitions and private company services as well as risk and financial advisory services. This firm deals with a great volume of data and it uses modern processing systems. The second firm examined is PricewaterhouseCoopers (PwC) which also has a leading role in accounting by providing audit and assurance, consulting and tax services as well as services for private companies. It also deals with board governance and risk assurance issues. It is a giant company with international status. Ernst &Young Limited (EY) is the third case study. Its scope of accounting activities includes: advisory, assurance and tax services and as a result it demonstrates great scientific interest. Last but not least, it is the forth from the «Big 4 Accounting firms», Klynveld Peat Marwick Goerdeler LLP (KPMG). The firm harnesses huge amounts of data from various sources and innovative methods of data processing. KPMG (as the above mentioned companies) uses Big Data in accounting in order to gain useful insights and to improve its audit, advisory and tax activities.
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Big data, Accounting, Auditing