Protection of Accounting Data in the Conditions of Using Internet of Things: Problems and Prospects of Accounting Digitalization

Abstract

Today, the development of accounting as an enterprise information system directly depends on the level of development of technological innovations that are used to collect and process accounting data. The purpose of the article is to analyze the features of the influence of the Internet of Things (IoT) use on the functioning of the accounting system and to find ways to protect accounting data in such conditions. The urgency of the problem of protection of accounting data security in the conditions of implementation of IoT-technologies in enterprises activity has been grounded. The essence of IoT and the reasons for its use in the activities of enterprises have been disclosed. The advantages of IoT implementation in accounting information systems of enterprises have been analyzed. The peculiarities of the development of accounting information systems based on the use of IoT have been analyzed. Prospects for the impact of IoT on the development of audit procedures have been identified. The main directions of application of IoT technologies in accounting and audit have been allocated (to improve accounting procedures; to improve the work of the accounting service; to improve the audit process). Problems of accounting data protection in the context of each of the selected directions have been disclosed. The main reservations of IoT implementation in accounting information systems from the point of view of accounting data security have been analyzed. The main ways to improve the accounting system and procedures for controlling the formation of accounting data as a result of the implementation of IoT have been disclosed. Authors' attention is focused on the need to improve the security of accounting data when collecting and transferring them using IoT-tools because if all elements of the information system are not properly protected from unauthorized interference, instead of benefit, they will harm, providing cybercriminals with a loophole to undermine information security.

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“…I. Belousova & T. Suhak (2019) emphasise the expediency of using modern methods of information protection for the needs of economic security of an enterprise. This opinion is shared by S. Lehenchuk et al (2021), noting that credentials are confidential information, the loss of which in the context of the development of information technology can lead to reputational threats and financial losses. Thus, optimising the process of information content formation and its subsequent in-depth analysis is currently an important challenge for an enterprise in the context of ensuring the required level of economic security.…”

The audit revolution: Integrating artificial intelligence in detecting accounting fraud

“…In recent decades, technology has played a significant role in transforming the audit and finance industry. The use of accounting information systems (AIS), databases, and data analysis tools has improved audit efficiency and effectiveness (Lehenchuk et al, 2021). More recently, AI has emerged as a tool that has the potential to change the way audits are conducted.…”

Проблеми Організації Та Ведення Фінансового Обліку В Умовах Імплементації Новітніх Методів Та Інструментів

“…Spilnyk & Paliukh (2019) also explore the development of accounting in the digital economy and extend the list of innovative tools proposed by previous researchers with technologies such as blockchain, QR codes, digital reporting, etc. Gao (2022) -exploring extensive data and applications in financial accounting, Yu et al (2018) -exploring the use of blockchain technology in accounting, Guo (2019) -citing the application of artificial intelligence in accounting, Lehenchuk et al (2021) -revealing aspects of the Internet of Things are also detailed on selected innovative tools. Studies on outsourcing accounting services are also of interest.…”

“…A major disadvantage of using the IoT includes the risk of cybersecurity breaches (Orlov, 2022). This risk can be mitigated by applying an appropriate cryptographic algorithm (Lehenchuk et al, 2021).…”