Resilient Supply Chains to Improve the Integrity of Accounting Data in Financial Institutions Worldwide Using Blockchain Technology

Resilient Supply Chains to Improve the Integrity of Accounting Data in Financial Institutions Worldwide Using Blockchain Technology

Yu Yang, Zecheng Yin
Copyright: © 2023 |Pages: 20
DOI: 10.4018/ijdwm.320648
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Abstract

Accounting information systems (AIS) gather, store, and analyze data in providing information to business leaders. Information technology resources and a computer-based accounting system are often used to monitor accounting activities in an accounting information system. Supply chain management strategies, planning, and implementation are increasingly dependent on the expertise of accountants with globalization. The accountant's job is to assist the supply chain design, development, and implementation group. Top management commitment, the kind of accounting information systems used, and input controls are all factors that affect accounting information systems' data quality. They can trace any form of theft or misappropriation using the blockchain (BC), which maintains asset transfers. In hopes of avoiding fraud, agreements loaded with economics and finance principles might be used to govern corporate operations. Using internet of things (IoT) data, banks can better understand their customers' business demands and value chain.
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Introduction Of Accounting Information

Global and cross-disciplinary interest in Blockchain (BC) technologies has risen dramatically since the Bitcoin cryptocurrency has been embraced (Hameedi et al. 2021). In practice, the term BC digitally signed pages of a book accounting system that can make digital payments using cryptocurrencies (Abdelraheem et al. 2021). Decentralized payment transaction management and validation is a key feature of the BC protocol since it avoids duplicate or digitally multiplied currencies when used in its most basic context (Liu et al. 2021). It has a lot of potential for expansion and growth, is cheap to use, and is altering the way private transactions are recorded because of its ease of use and high level of security (Wahyuningsih et al. 2021). Human and financial resources inside an organization are collectively called the AIS, responsible for collecting and processing transaction data to provide financial information to management (Ahmed. 2021). All levels of management have access to this data, which is then used to plan and monitor the organization's actions (Fullana & Ruiz. 2021). Organizations utilize supply chain networks to purchase, manufacture, and distribute products and services all over the globe using supply chain and information systems (SC&IS). It's possible to enhance ordering, production, and inventory operations via the use of supply chain management (SCM), a management technique in cost accounting. SCM aids in streamlining the process. When a customer places an order, the SCM system is used to keep tabs on its progress from placement to confirmation to delivery. This ensures orders are handled quickly and correctly.

Production activities, such as resource and material allocation, are planned and scheduled using the SCM system so that output can be maximized while still meeting customer demand.

Raw materials, finished products, and Production process are all tracked through the SCM system to keep tabs on production progress. This ensures that the right products are in stock at the right time to meet customer demand and reduce inventory costs.

In contrast to finance, Supply Chain is concerned with procuring, producing, and distributing items to consumers. It is possible to connect and interact between Finance and Supply Chain, although they typically use separate platforms.

Investors, creditors, and management rely on this system to keep tabs on the organization's financial health and disseminate the findings to the appropriate parties (Malo-Alain et al. 2021; Balios. 2021). Information systems supporting the various aspects of the accounting functions have been established for each area, which must provide the required quality of accounting information to work effectively and efficiently, from preparing financial statements to completing tax returns (Jovanović & Vašiček. 2021; Stoel & Havelka. 2021). Provide summaries of this data in financial reports for the benefit of external users (Choi. 2021). Accounting Information Systems (AISs) monitor accounting processes utilizing information technology resources to satisfy the accounting information quality criteria (Anwar et al. 2021). It employs a mechanism that keeps track of accounting operations through IT resources (Caruana. 2021). There has been an increase in the role of accounting in management due to this transformation in both local and global economies, which has resulted in a shift in accounting practices. Customers' and employees' information and tax data must all match the quality requirements of the accounting information system (Bătae et al. 2021; Wang. 2021).

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