THE ROLE OF INTERNET OF THINGS (IOT) IN TRANSFORMING ACCOUNTING INFORMATION SYSTEMS: A SYSTEMATIC LITERATURE REVIEW

Sovia Irawaty Sihombing; Sambas Ade Kesuma; Fahmi Natigor Nasution; Keulana Erwin

doi:10.31539/vf6sh937

Authors

Sovia Irawaty Sihombing Department of Accounting, Universitas Sumatera Utara, Medan, Indonesia
Sambas Ade Kesuma Department of Accounting, Universitas Sumatera Utara, Medan, Indonesia
Fahmi Natigor Nasution Department of Accounting, Universitas Sumatera Utara, Medan, Indonesia
Keulana Erwin Department of Accounting, Universitas Sumatera Utara, Medan, Indonesia

DOI:

https://doi.org/10.31539/vf6sh937

Keywords:

Internet of Things (IoT); Accounting Information Systems (AIS); Digital Transformation; Predictive Analytics; Blockchain; XBRL; Systematic Literature Review (SLR); Technology Adoption

Abstract

The rapid emergence of the Internet of Things (IoT) has transformed how accounting information systems (AIS) operate in the digital era. This study presents a Systematic Literature Review (SLR) of ten international journal articles published between 2023 and 2024 to analyze IoT’s influence on accounting practices, adoption models, and organizational performance. The findings reveal that IoT integration improves the timeliness, accuracy, and transparency of financial data while supporting automation and predictive analytics in accounting. When combined with other technologies such as Blockchain and XBRL, IoT enhances interoperability, auditability, and traceability across financial systems. The dominant theoretical frameworks include the Technology Acceptance Model (TAM), the Technology–Organization–Environment (TOE) model, and Socio-Technical Systems Theory, highlighting the interplay between technology and human factors. Despite these benefits, research gaps persist in empirical validation, long-term sustainability, and data governance. This review contributes to digital accounting scholarship by proposing an integrative view of IoT-based accounting and identifying future research opportunities to strengthen accountability, efficiency, and strategic decision-making in digitalized financial environments.

References

Al-Mashaqbeh, I., Al-Dwairi, M., & Jarrah, A. (2023). Adoption of IoT-based systems in smart manufacturing: Implications for accounting and management control. Procedia Computer Science, 225, 103416. https://doi.org/10.1016/j.procs.2023.103416

Elmaasrawy, H. E. (2024). Integrating Internet of Things (IoT) into Accounting Information Systems: Opportunities and challenges for digital transformation. International Journal of Accounting Information Systems, 44, 100651. https://doi.org/10.1016/j.accinf.2024.100651

Huy, P. Q., Nguyen, T. M., & Tran, T. L. (2024). Digitalization of Accounting Information Systems: A case study of Chinese aquaculture firms using IoT. Cogent Business & Management, 11(1), 2368421. https://doi.org/10.1080/23311975.2024.2368421

Nofel, M. (2024). Integrating Blockchain, IoT, and XBRL in accounting systems: Toward transparency and interoperability. Journal of Risk and Financial Management, 17(4), 210. https://doi.org/10.3390/jrfm17040210

Rani, M., Singh, D., & Kaur, H. (2023). IoT-based predictive maintenance system for industrial equipment: Implications for cost accounting. Journal of Manufacturing Systems, 68, 104280. https://doi.org/10.1016/j.jmsy.2023.104280

Sharma, J., Tyagi, M., & Bhardwaj, A. (2024). Valuation of inter-boundary inefficiencies using IoT-based monitoring and GTMA modeling in food supply chains. International Journal of System Assurance Engineering and Management, 15(2), 987–1002. https://doi.org/10.1007/s13198-022-01840-w

Sodkomkham, T., Rattanamethawong, N., & Srisorn, S. (2024). Integrating Material Flow Cost Accounting (MFCA) with IoT sensors for sustainable production management. Journal of Cleaner Production, 422, 139850. https://doi.org/10.1016/j.jclepro.2024.139850

Westergren, U., Håkansson, J., & Nilsson, A. (2024). Enabling digital transformation through IoT adoption: Organizational mechanisms in accounting practices. Information & Management, 61(3), 103780. https://doi.org/10.1016/j.im.2024.103780

Zadorozhnyi, Z.-M., Muravskyi, V., & Havrylenko, S. (2023). Application of the Internet of Things and 6G communication in accounting data management. Virtual Economics, 6(4), 25–47. https://doi.org/10.34021/ve.2023.06.04.02

Westergren, U., et al. (2024). IoT data impact on management accounting: Real-time sustainability performance measurement. Journal of Cleaner Production, 423, 139911. https://doi.org/10.1016/j.jclepro.2024.139911