Data Governance and Ethical Issues in Accounting Technology

Purpose: The introduction of advanced technologies like artificial intelligence (AI), blockchain, and enterprise resource planning (ERP) systems has transformed accounting practices, allowing for quicker processing, greater transparency, and more informed decision-making. Despite these benefits, they also bring up crucial concerns related to data governance and ethical responsibility. This paper explores how governance frameworks and ethical standards can be applied to ensure trust, adherence to regulations, and integrity in technology-driven accounting settings. Methodology: This study utilizes a conceptual and case-based approach, referencing regulatory frameworks such as IFRS, Indian Accounting Standards (Ind AS), GDPR, and the EU AI Act. It addresses ethical challenges like bias in AI predictions, transparency in disclosures, risks of fraud in digital records, and responsibility for technology-driven mistakes. Case studies, including ERP breaches revealing client information, incorrect reporting of crypto assets due to a lack of standards, and inaccuracies in ESG reporting, are analyzed to demonstrate real-world issues. Findings: The research finds that strong data governance ensures accuracy, integrity, and compliance, while ethical oversight protects stakeholder trust. Weak governance leaves organizations vulnerable to cybersecurity threats, harm to reputation, and regulatory fines. Excessive reliance on automation without professional skepticism weakens ethical judgment, while emerging areas such as ESG reporting and blockchain require new accountability frameworks. The findings highlight that accountants must transition from traditional record keepers to digital stewards of trust. Implications: The paper suggests practical strategies, including forming AI governance councils, performing regular audits for bias and security, and incorporating ESG metrics into accounting systems. It advocates for a balanced approach where innovation aligns with compliance and ethics, ensuring that technology bolsters rather than compromises financial integrity. By embedding governance and ethical principles into accounting technology, organizations can enhance stakeholder trust and create resilient financial systems.