Computerized accounting systems and quality of financial reports of selected commercial banks in Hargeisa, Somaliland
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Date
2018-06
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Publisher
Kampala International University, College of Economics and Management
Abstract
This study aimed at investigating the effects of computerized accounting systems on financial reports of selected commercial banks in Hargeisa Somaliland. It was guided by three specific objectives, that included (i) To establish the effect of Accounting data processing on the quality of financial reports in Somaliland, (ii) To establish the effect of Accounting data Storage on the quality of financial reports in Somaliland, and (iii) To establish the effect of Accounting data retrieval on the quality of financial reports in Somaliland. This research employed descriptive research design to describe the variables and the main instrument of data collection was the questionnaires. Quantitative data was analyzed using both descriptive and inferential analysis. Data collected through the open-ended questions. The sample for the study consisted of 63 respondents from selected commercial banks in Hargeisa Somaliland; selected through purposive sampling technique. Data collected was analyzed using descriptive statistics and regression analysis in particular using the Statistical Package for Social Sciences (SPSS) software. To ensure validity of the instruments Content Validity Index (CVI) was used which should not be less than 0.7. To ensure reliability, the researcher conducted a pilot test and the Cronbach’s Alpha reliability coefficient which ranges in value from 0 to 1 was computed using SPSS. The study found out that taking all other independent variables at zero, a unit increase in accounting data processing lead to .465 increase in quality of financial reports whereas a unit increase in Accounting data Storage leads to .310 increase in quality of financial reports and a unit increase in Accounting data retrieval leads to .472 increase in quality of financial reports of selected commercial banks. This infers that accounting data retrieval contributes most to quality of financial reports of selected commercial banks followed by Accounting data processing then accounting data storage. The study concluded that computerized accounting systems has significant effect on the quality of financial reports of selected commercial banks in Hargeisa Somaliland. The study recommends that in order to ensure that the selected commercial banks have quality financial reports; they should invest on computerized accounting systems to improve the speed, timeliness, accuracy and relevance of the financial reports of their organizations. The study contributed to new knowledge in the following ways; the holistic analysis of this study added to existing research by identifying that computerized accounting systems such as accounting data processing, accounting data storage and data retrieval storage significantly affect the quality of financial reports. To holistically analyze the significant effect of these systems, which has not been done before. The study confirmed results of existing studies that also emphasized the effect of computerized accounting systems on quality of financial reports. However, the study also provides empirical evidence that computerized accounting systems factoring in its speed, timeliness, accuracy, Data Security and the possibility of producing quality data affects the quality of financial reports of the selected commercial banks in Hargeisa Somaliland. Moreover, the study contributed that the measures of quality of financial reports are relevancy, reliability and understandability that were not emphasized in existing computerized accounting and quality of financial reports literature.
Description
A thesis submitted to the College of Economics and Management in partial fulfillment of the requirement for the award of the Degree of Master of Business Administration In Finance and Accounting Kampala International University
Keywords
Computerized accounting systems, Quality of financial reports, Commercial banks, Hargeisa, Somaliland