MJAMR

Analysis on the Role of Accounting Information Systems on Financial Reporting in Organizations a Case of Sbm Investments Kajansi

Engule Yunusu, Lukwago Ismail


Abstract

The prevalence of diverse accounting software or computerized accounting systems and the increased usage of such systems amongst micro finances globally, as well as the need to present decisionuseful financial reports by microfinance organizations motivated the researcher to undertake this project. The study, therefore, sought to ascertain the influence of computerized accounting systems on financial reporting of organizations in Uganda. The researcher modeled computerized accounting systems as the independent variable with five formative constructs, namely internal controls, automated dataprocessing, relational database, automated reporting, and enhancing technologies. The dependent variable, financial reporting quality (FRQ), was modeled with five dimensions, namely relevance, faithful representation, comparability, verifiability, and understandability. Two hypotheses relating to the extent to which computerized accounting systems influence financial reporting quality in terms of relevance, faithful representation, comparability, verifiability, and understandability, were tested. The findings of the study also showed that the most impacted dimension of financial reporting quality by accounting system is understandability, while the least impacted is verifiability. Consequently, the researcher concluded that computerized accounting systems significantly enhance the quality of financial reporting information. Hence, there is a need to encourage organizations to adopt computerized accounting systems to improve their financial reporting quality. Management and those performing accounting functions in SBM Investments limited and finance and accounting scholars would find the results of this study extremely useful. The researcher has suggested areas for further studies that would help to validate and, or, extend the study’s findings. research.miu.ac.ug/publications 1777 METROPOLITAN JOURNAL OF BUSINESS & ECONOMICS (MJBE) ISSN 1813-4238 Vol. 2 Issue 3, June - 2023, Pages: 1777-1791

Keywords

Accounting Information Systems And Financial Reporting
Metropolitan Journal of Academic Multidisciplinary Research

Cite This Article

Engule Yunusu & Lukwago Ismail (2023). Analysis on the Role of Accounting Information Systems on Financial Reporting in Organizations a Case of Sbm Investments Kajansi. Metropolitan Journal of Academic Multidisciplinary Research, 2(6). https://journals.miu.ac.ug/pages/article.php?article_id=892

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