ADOPTION AND IMPLICATIONS OF DIGITIZATION ON ACCOUNTING PRACTICE IN NIGERIA

Abstract

Technology grows continuously within the accounting field. A lot of new technologies have been invented in order to make facilities for the accountants and increase the quality of their performance, but there is less research on what accountants need based on the a characteristics of the firm that they work for. As a result of this, this study focused on the adoption and implications of digitalization of accounting practice in Nigeria. Specifically, the study sought to examine the relationship between the adoption of digital financial reporting in companies in the Nigerian economy, the significant challenges of the digitizing process and the implications of the growth of the global digital economy. In order to achieve this, a descriptive survey research design was used in eliciting response gotten from respondents. A structured questionnaire was administered to collect data from a sample of 100 accounting professionals out of a population of chartered accountants and auditors in Benin City, Edo state. The collected data was analyzed using multiple regression analysis and the chi- square test of correlation analysis. In the findings, it was observed that the adoption of digital technologies have a positive and significant relationship with accounting practice in the Nigerian economy. The study revealed that a percentage increase in investment in the accounting digitalization process is likely to increase the effectiveness of the job of accounting practitioners by about 8%, adapting to the globalization of the corporate business world. However, the study also revealed that challenges such as cybercrimes and internet fraud will also increase with the digitalization adoption. The research recommends that organizations create learning platforms and trainings on the use of digital information and internet technologies, even as the educational sector continues to adjust to these digitalization processes.