Big Data information governance by accountants

Abstract

Purpose: Big Data has become increasingly important to multiple facets of the accounting profession, but accountants have little understanding of the steps necessary to convert Big Data into useful information. This limited understanding creates a gap between what accountants can do and what accountants should do to assist in Big Data information governance. The study aims to bridge this gap in two ways. Design/methodology/approach: First, the study introduces a model of the Big Data life cycle to explain the process of converting Big Data into information. Knowledge of this life cycle is a first step toward enabling accountants to engage in Big Data information governance. Second, it highlights informational and control risks inherent to this life cycle, and identifies information governance activities and agents that can minimize these risks. Findings: Because accountants have a strong ability to identify the informational and control needs of internal and external decision-makers, they should play a significant role in Big Data information governance. Originality/value: This model of the Big Data life cycle and information governance provides a first attempt to formalize knowledge that accountants need in a new field of the accounting profession.