The effect of computerized accounting system on the quality of financial reporting in corporate utilities: a case of National Water and Sewerage Corporation, Mbarara Branch
Loading...
Date
2019-08
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
The study conceptualized and studied the effect of computerized accounting systems on the quality of financial reporting in the NWSC Mbarara branch. The study was guided by TAM theory. Agency theory by Meckling and Jensen (1976) concerned with corporate disclosures and Unified Technology Acceptance user theory (UTAUT) proposed by (Venkatesh et al., 2003). A correlational design was used with mixed approach using both quantitative and qualitative data. Total population of 132 from which a sample of 97 was derived using censer and simple random sampling. Data was collected using a questionnaire method with a response rate of 85.6% which was representative enough of the whole population Punch (2003). Findings revealed moderate positive relationship between computerized accounting systems and quality of financial reports with correlation coefficient of (R) = 0.426* * * given by Pearson correlation and adjusted R2 square of 17.1% indicating a total outcome in quality of financial reports is contributed by transaction processing systems. A significant positive relationship between reporting systems on the quality of financial reports at a correlation coefficient (R)= 0.536*** given by Pearson correlation and adjusted R2 of 27.9% indicating a total outcome in quality of financial reports is explained by computerized reporting systems. There was a moderate positive relationship between systems security and quality of financial reports with correlation coefficient of(R) 0.402*** given by Pearson correlation and adjusted R2 of 15.1% indicating a total outcome in quality of financial reports is explained by systems security. The results of the study indicate that there a significant positive association between computerized accounting systems and quality of financial reports with the total outcome positive effect of 27.8% of computerized accounting systems towards quality of financial reports. The study reviewed previous studies focusing on its timeliness, comparability, understandability and reliability. Recommendations were, that upgrades should be initiated to integrate the e-billing system to Iscala system in order to reduce errors generated by manual transfer of data from one system to another, Improvements and versions of accounting systems should be done regularly to maintain relevance of the system in the current environment, staff should have constant and continuous training by the authorized dealers of the packages so that they remain well equipped with the knowledge and experience of the system. Best practice requires that system audit logs should be reviewed regularly for potential security incidents, security breaches and a record of the review should be maintained which is centrally to what is being done. More emphasis should be put internal audit reviews to appraise and check the strength of the instituted controls within the computerized accounting systems most especially the audit logs to remove obsolete systems in the NWSC Mbarara branch.
Description
A research report submitted to the college of economics and management in partial fulfilment of the requirements for the Award of Bachelor’s Degree of Business Administration of Kampala International University
Keywords
Computerized Accounting System, Financial Reporting, Corporate Utilities, National Water and Sewerage Corporation