The Impact of Digital Twins on Accounting: Evidence from the Egyptian Environment
DOI:
https://doi.org/10.56830/IJAMS10202402Keywords:
Digital Twins Technology, Accounting, Sustainable Development Strategy, A field Study, digitalization, EgyptAbstract
This study explored the impact of Digital Twins (DT) technology on accounting processes (Acc) in the Egyptian context. The researchers conducted a survey of 223 academics and professional accountants on the impact of DT on Acc. Using regression analysis, the study found a significant positive impact of DT on Acc in Egypt. The scarcity of research on the relationship between DT and Acc emphasizes the study's scientific value. Practically, the study contributes to Egypt’s Sustainable Development Strategy (SDS), enhances businesses' understanding of the economic and operational benefits and challenges associated with DT, and emphasizes the usefulness of DT to accounting processes. Finally, the study urged Egyptian enterprises to integrate DT into accounting processes, thereby enhancing competitiveness, sustainability, and performance.
References
Abhishek, N., Suraj, N., Rahiman, H. U., Nawaz, N., Kodikal, R., Kulal, A., et al. (2024). Digital transformation in accounting: elevating effectiveness across accounting,
auditing, reporting and regulatory compliance. Journal of Accounting & Organizational Change(ahead-of-print).
ACCA, A. o. (2023). Digital horizons: technology, innovation, and the future of accounting. https://www.accaglobal.com/content/dam/ACCA_Global/professional-
insights/digital-horizons2023/PI-DIGITAL-HORIZONS%20v5.pdf.
Ala-Laurinaho, R. (2019). Sensor data transmission from a physical twin to a Digital
Twins.
Atagan Çetin, A., & Pamukçu, A. (2023). The Role of Digital Twins in Green Accounting
and Sustainability.
Awang, Y., Shuhidan, S. M., Taib, A., Rashid, N., & Hasan, M. S. (2022). Digitalization of accounting profession: an opportunity or a risk for future accountants? DOI: https://doi.org/10.3390/proceedings2022082093
Proceedings.
Balaman, Ş. Y. (2019). Uncertainty issues in biomass-based production chains. Decision- DOI: https://doi.org/10.1016/B978-0-12-814278-3.00005-4
making for biomass-based production chains, 77, 112.
Baldwin, A. A., Brown, C. E., & Trinkle, B. S. (2006). Opportunities for artificial intelligence development in the accounting domain: the case for auditing. DOI: https://doi.org/10.1002/isaf.277
Intelligent Systems in Accounting, Finance & Management: International Journal, 14(3), 77-86.
Banța, V.-C., Rîndașu, S.-M., Tănasie, A., & Cojocaru, D. (2022). Artificial Intelligence in
the Accounting of International Businesses: A Perception-Based Approach.
Sustainability, 14(11), 6632.
Bose, S., Dey, S. K., & Bhattacharjee, S. (2023). Big data, data analytics and artificial intelligence in accounting: An overview. Handbook of Big Data Research Methods: 0, 32. DOI: https://doi.org/10.4337/9781800888555.00007
Botín-Sanabria, D. M., Mihaita, A.-S., Peimbert-García, R. E., Ramírez-Moreno, M. A., Ramírez-Mendoza, R. A., & Lozoya-Santos, J. d. (2022). Digital Twins technology challenges and applications: A comprehensive review. Remote Sensing, 14(6), 1335. DOI: https://doi.org/10.3390/rs14061335
Brenner, B., & Hummel, V. (2017). Digital Twins as enabler for an innovative digital
shopfloor management system in the ESB Logistics Learning Factory at Reutlingen-University. Procedia Manufacturing, 9, 198-205. DOI: https://doi.org/10.1016/j.promfg.2017.04.039
Bruynseels, K., Santoni de Sio, F., & Van den Hoven, J. (2018). Digital twins in health care: ethical implications of an emerging engineering paradigm. Frontiers in DOI: https://doi.org/10.3389/fgene.2018.00031
genetics, 9, 31.
Bygren, K. (2016). The digitalization impact on accounting firms business models. In.
Chukwuani, V. N., & Egiyi, M. A. (2020). Automation of accounting processes: impact of artificial intelligence. International Journal of Research and Innovation in Social
Science (IJRISS), 4(8), 444-449.
Citak, J., Owoc, M. L., & Weichbroth, P. (2021). A note on the applications of artificial intelligence in the hospitality industry: preliminary results of a survey. Procedia Computer Science, 192, 4552-4559. DOI: https://doi.org/10.1016/j.procs.2021.09.233
Coate, C. J., & Mitschow, M. C. (2018). Luca Pacioli and the role of accounting and business: Early lessons in social responsibility. In Research on Professional Responsibility and Ethics in Accounting, (Vol. 21, pp. 1-16). Emerald Publishing Limited. DOI: https://doi.org/10.1108/S1574-076520180000021001
Coman, D. M., Ionescu, C. A., Duică, A., Coman, M. D., Uzlau, M. C., Stanescu, S. G., et al. (2022). Digitization of accounting: The premise of the paradigm shift of role of DOI: https://doi.org/10.3390/app12073359
the professional accountant. Applied Sciences, 12(7), 3359.
Dobrolezha, E. V., Mikhailin, D. A., Bukhov, N. V., & Riabchenko, A. A. (2023). The Adaptive AI-Based Digital Twins of Accounting and Analytical Management System of Organizations In E. G. Popkova & B. S. Sergi (Eds.), Anti-Crisis
Approach to the Provisi. Anti-Crisis Approach to the Provision of the Environmental Sustainability of Economy, (pp. 217-222). Springer Nature Singapore. https://doi.org/10.1007/978-981-99-2198-0_23. DOI: https://doi.org/10.1007/978-981-99-2198-0_23
Främling, K., Holmström, J., Ala-Risku, T., & Kärkkäinen, M. (2003). Product agents for handling information about physical objects. Report of Laboratory of information
processing science series B, TKO-B, 153(03).
Fuller, A., Fan, Z., Day, C., & Barlow, C. (2020). Digital twin: Enabling technologies.
challenges and open research. Ieee Access, 8, 108952-108971.
Fülöp, M. T., Topor, D. I., Ionescu, C. A., Cifuentes-Faura, J., & Măgdaș, N. (2023). Ethical concerns associated with artificial intelligence in the accounting profession: a curse or a blessing. Journal of Business Economics and Management, 24(2), 387–404. DOI: https://doi.org/10.3846/jbem.2023.19251
Gelernter, D. (1993). Mirror worlds: Or the day software puts the universe in a
shoebox... How it will happen and what it will mean. Oxford University Press.
Glaessgen, E., & Stargel, D. (2012). The Digital Twins paradigm for future NASA and US Air Force vehicles. 53rd AIAA/ASME/ASCE/AHS/ASC structures, structural dynamics and materials conference 20th AIAA/ASME/AHS adaptive structures DOI: https://doi.org/10.2514/6.2012-1818
conference 14th AIAA.
Gockel, B., Tudor, A., Brandyberry, M., Penmetsa, R., & Tuegel, E. (2012). Challenges with structural life forecasting using realistic mission profiles. 53rd AIAA/ASME/ASCE/AHS/ASC structures, structural dynamics and materials DOI: https://doi.org/10.2514/6.2012-1813
conference 20th AIAA/ASME/AHS adaptive structures conference 14th AIAA.
Grieves, M. (2014). Digital twin: manufacturing excellence through virtual factory
replication. White paper, 1(2014), 1-7.
Grieves, M.; Vickers, J. (2017). Digital Twin: Mitigating Unpredictable, Undesirable Emergent Behavior in Complex Systems. In F.-J. Kahlen, S. Flumerfelt, & A.
Alves (Eds.). Transdisciplinary Perspectives on Complex Systems: New Findings and
Approaches, (pp. 85-113). Springer International Publishing.
https://doi.org/10.1007/978-3-319-38756-7_4. DOI: https://doi.org/10.1007/978-3-319-38756-7_4
Hassan, S. A. (2021). The impact of artificial intelligence on the accounting profession in the tourism sector in Egypt. International Journal of Applied Research, 7(6), 319-328. https://doi.org/DOI: 10.22271/allresearch.2021.v7.i6e.8716. DOI: https://doi.org/10.22271/allresearch.2021.v7.i6e.8716
He, Y., Guo, J., & Zheng, X. (2018). From surveillance to digital twin: Challenges and recent advances of signal processing for industrial internet of things. IEEE Signal Processing Magazine, 35(5), 120-129. DOI: https://doi.org/10.1109/MSP.2018.2842228
Hochhalter, J., Leser, W. P., Newman, J. A., Gupta, V. K., Yamakov, V., Cornell, S. R., et
al. (2014). Coupling damage-sensing particles to the digitial twin concept.
Hribernik, K., Wuest, T., & Thoben, K.-D. (2013). Towards product avatars representing
middle-of-life information for improving design, development and
manufacturing processes. IFIP International Conference on Digital Product and Process Development System.
Ionescu-Feleagă, L., Dragomir, V. D., Bunea, Ș., Stoica, O. C., & Barna, L.-E.-L. (2022). Empirical evidence on the development and digitalization of the accounting and DOI: https://doi.org/10.3390/electronics11233970
finance profession in Europe. Electronics, 11(23), 3970.
Jejeniwa, T. O., Mhlongo, N. Z., & Jejeniwa, T. O. (2024). A comprehensive review of the impact of artificial intelligence on modern accounting practices and financial
reporting. Computer Science & IT Research Journal, 5(4), 1031-1047.
Jin, H., Jin, L., Qu, C., Fan, C., Liu, S., & Zhang, Y. (2022). The Impact of Artificial Intelligence on the Accounting Industry. 2022 8th International Conference on DOI: https://doi.org/10.2991/assehr.k.220504.103
Humanities and Social Science Research (ICHSSR 2022).
Jones, D., Snider, C., Nassehi, A., Yon, J., & Hicks, B. (2020). Characterising the Digital Twin: A systematic literature review. CIRP Journal of Manufacturing Science and Technology, 29, 36-52. https://doi.org/https://doi.org/10.1016/j.cirpj.2020.02.002. DOI: https://doi.org/10.1016/j.cirpj.2020.02.002
Kaewunruen, S., & Lian, Q. (2019). Digital Twins aided sustainability-based lifecycle management for railway turnout systems. Journal of Cleaner Production, 228, 15371551. DOI: https://doi.org/10.1016/j.jclepro.2019.04.156
Kaewunruen, S.; Rungskunroch, P.; Welsh, J. (2018). A digital-twin evaluation of net
zero energy building for existing buildings. Sustainability, 11(1), 159. DOI: https://doi.org/10.3390/su11010159
Knudsen, D.-R. (2020). Elusive boundaries, power relations, and knowledge production: A systematic review of the literature on digitalization in accounting. International Journal of Accounting Information Systems, 36, 100441. DOI: https://doi.org/10.1016/j.accinf.2019.100441
Kritzinger, W., Karner, M., Traar, G., Henjes, J., & Sihn, W. (2018). Digital Twins in manufacturing: A categorical literature review and classification. Ifac- DOI: https://doi.org/10.1016/j.ifacol.2018.08.474
papersonline, 51(11), 1016-1022.
Kwarbai, J., & Omojoye, E. (2021). Artificial intelligence and accounting profession. Babcock J. Account. Financ, 1(1), 1-26.
Liu, J. (2022). Models in the Construction of Accounting Informatization Transformation Based on Digital Twin. Security and Communication Networks, 2022, 1-11. https://doi.org/10.1155/2022/3186768 . DOI: https://doi.org/10.1155/2022/3186768
Liu, J., Zhou, H., Liu, X., Tian, G., Wu, M., Cao, L., et al. (2019). Dynamic evaluation method of machining process planning based on digital twin. Ieee Access, 7, DOI: https://doi.org/10.1109/ACCESS.2019.2893309
19312-19323.
Liu, M., Fang, S., Dong, H., & Xu, C. (2021). Review of Digital Twins about concepts, technologies, and industrial applications. Journal of manufacturing systems, 58, 346361. DOI: https://doi.org/10.1016/j.jmsy.2020.06.017
Madni, A. M., Madni, C. C., & Lucero, S. D. (2019). Leveraging Digital Twins
technology in model-based systems engineering. Systems, 7(1).
Mukhtar, A. (2023). Harnessing the power of Digital Twins technology in accounting and finance. Retrieved from https://www.linkedin.com/pulse/harnessing-power-
digital-twin-technology-accounting-finance-mukhtar/.
Patil, A., Srivastava, S., Paul, S. K., & Dwivedi, A. (2024). Digital twins' readiness and its
impacts on supply chain transparency and sustainable performance. Industrial Management & Data Systems, Ahead-of-print.
Petkov, R. (2020). Artificial intelligence (AI) and the accounting function—A revisit and a new perspective for developing framework. Journal of emerging technologies in DOI: https://doi.org/10.2308/jeta-52648
accounting, 17(1), 99-105.
Raporu, A. (2016). Professional accountants–the future: Drivers of change and future skills. Çevrimiçi https://www. accaglobal. com/content/dam/members-beta/docs/ea-patf-
drivers-of-change-and-future-skills. pdf.
Schluse, M., Priggemeyer, M., Atorf, L., & Rossmann, J. (2018). Experimentable digital twins—Streamlining simulation-based systems engineering for industry 4.0. DOI: https://doi.org/10.1109/TII.2018.2804917
IEEE Transactions on industrial informatics, 14(4), 1722-1731.
Schluse, M.; Rossmann, J. (2016). From simulation to experimentable digital twins: Simulation-based development and operation of complex technical systems. 2016 IEEE international symposium on systems engineering (ISSE). DOI: https://doi.org/10.1109/SysEng.2016.7753162
Shafto, M., Conroy, M., Doyle, R., Glaessgen, E., Kemp, C., LeMoigne, J., et al. (2010). Draft modeling, simulation, information technology & processing roadmap.
Technology area, 11, 1-32.
Singh, M., Fuenmayor, E., Hinchy, E. P., Qiao, Y., Murray, N., & Devine, D. (2021). Digital twin: Origin to future. Applied System Innovation, 4(2), 36. DOI: https://doi.org/10.3390/asi4020036
Söderberg, R., Wärmefjord, K., Carlson, J. S., & Lindkvist, L. (2017). Toward a Digital Twins for real-time geometry assurance in individualized production. CIRP DOI: https://doi.org/10.1016/j.cirp.2017.04.038
annals, 66(1), 137-140.
Stancu, M. S., & Duţescu, A. (2021). The impact of the Artificial Intelligence on the accounting profession, a literature’s assessment. Proceedings of the International Conference on Business Excellence, 15(1), 749-758. DOI: https://doi.org/10.2478/picbe-2021-0070
Stark, R., Kind, S., & Neumeyer, S. (2017). Innovations in digital modelling for next
generation manufacturing system design. CIRP annals, 66(1), 169-172.
Stoica, O. C., & Ionescu-Feleagă, L. (2021). Digitalization in accounting: A structured literature review. Proceedings of the 4th International Conference on Economics and Social Sciences: Resilience and Economic Intelligence through Digitalization and Bi. DOI: https://doi.org/10.2478/9788366675704-045
Tao, F., Cheng, J., Qi, Q., Zhang, M., Zhang, H., & Sui, F. (2018). Digital twin-driven product design, manufacturing and service with big data. The International
Journal of Advanced Manufacturing Technology, 94, 3563-3576.
Tkaczyk, M., Salina, A., Lyly-Yrjänäinen, J., & Laine, T. (2023). Towards a Digital Twins of a service: a case of communicating cost and control implications of a new after-sales service with an animation. Qualitative Research in Accounting & Management(ahead-of-print). DOI: https://doi.org/10.1108/QRAM-10-2022-0175
Tuegel, E. (2012). The airframe digital twin: some challenges to realization. 53rd AIAA/ASME/ASCE/AHS/ASC structures, structural dynamics and materials DOI: https://doi.org/10.2514/6.2012-1812
conference 20th AIAA/ASME/AHS adaptive structures conference 14th AIAA.
Wang, J., Ye, L., Gao, R. X., Li, C., & Zhang, L. (2019). Digital Twins for rotating machinery fault diagnosis in smart manufacturing. International Journal of Production Research, 57(12), 3920-3934. DOI: https://doi.org/10.1080/00207543.2018.1552032
Xu, Y., Sun, Y., Liu, X., & Zheng, Y. (2019). A digital-twin-assisted fault diagnosis using DOI: https://doi.org/10.1109/ACCESS.2018.2890566
deep transfer learning. Ieee Access, 7, 19990-19999.
Yigitbasioglu, O., Green, P., & Cheung, M.-Y. D. (2023). Digital transformation and accountants as advisors. Accounting, Auditing & Accountability Journal, 36(1), 209237. DOI: https://doi.org/10.1108/AAAJ-02-2019-3894
Zhang, Y., Xiong, F., Xie, Y., Fan, X., & Gu, H. (2020). The impact of artificial intelligence
and blockchain on the accounting profession. Ieee Access, 8, 110461-110477.
