Abstract
This thesis is motivated by the new Danish Bookkeeping Act, which was agreed upon on May 22, 2022. The new law sets numerous demands for digital bookkeeping practices and requires suppliers of digital bookkeeping systems to adapt their systems to assist companies in improving their bookkeeping. The purpose of these changes was to enhance the quality of the information Danish companies report to the government, as well as to help the government to detect and sanction fraudulent activities by Danish companies. However, the government did not intend the new regulations to become a burden for companies that comply with the laws. The biggest changes in the new Danish Bookkeeping Act are that companies are now required to keep their books in digital accounting systems and to store their receipts digitally in these systems. Additionally, there are new requirements for the digital accounting systems and, in particular, for their providers, who must be approved by the Danish Business Authority.
Based on this, the project aimed to investigate the problem: “What are the consequences of the new Bookkeeping Act for the Danish business sector?”
The project found that many Danish companies have not yet familiarized themselves with the new regulations, which could be problematic as they may need to switch to a new digital accounting system if their current system is not approved by the Danish Business Authority. To be approved by the Danish Business Authority, the project concludes that suppliers of digital accounting systems need to focus on complying with the new requirements regarding process automation. However, the project also highlights a significant issue for suppliers of non-cloud-based digital accounting systems, as they will not have the ability to comply with the new requirements. In general, the project fears that the new Bookkeeping Act will have expensive consequences for providers of digital accounting systems, which is why it is also fears that some providers will disappear from the market.
Regarding auditors and the Danish authorities, the project concludes that they will have better opportunities to conduct controls as a result of the new Bookkeeping Act. However, the new law will also mean that there is more to be controlled. This can be lucrative for auditors, but it is expected to be costly for the authorities. Overall, based on the project, it can be concluded that the new Danish Bookkeeping Act will contribute to making it easier for the Danish authorities to detect and sanction fraudulent activities by Danish companies, but this will come at the expense of providers of digital accounting systems and Danish companies.
Educations | MSc in Auditing, (Graduate Programme) Final Thesis |
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Language | Danish |
Publication date | 2023 |
Number of pages | 85 |
Supervisors | Jeanette Willert |