THE EFFECT OF COMPUTERISED ACCOUNTING SYSTEMS ON THE QUALITY OF FINANCIAL REPORTING IN CORPORATE UTILITIES
No Thumbnail Available
Date
2024-09-10
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Uganda Christian University
Abstract
This is a theoretical research paper that explored the effect of computerized
accounting systems on quality financial reports made at the Umeme Kampala branch.
The specific objectives of this study were; to examine the effect of transaction
processing systems on the quality of financial reporting in Umeme, to examine the
effect of computerized reporting systems on the quality of financial reporting in
Umeme and to examine the effect of systems security on financial reporting in Umeme.
The researcher implemented the correlational design with a combined-method
approach, whereby quantitative data were combined with qualitative data. The entire
population was 56, out of which a sample size of 49 was obtained by using simple
random sampling.
Consequently, computerized accounting systems relate moderately positively with
qualities of financial reports, meaning results regarding financial report qualities are
all accounted by transaction processing systems. The results showed a moderate
positive relationship between the systems security and the quality of the financial
reports. This was a total outcome on the quality of the financial reports explained by
the systems security.
The findings of this study have established that there is significant positive relation
between computerized accounting systems and the quality of financial reports. The
timeliness, comparability, understandability and also reliability have been reviewed in
past literature in this study. The realization of integrating the e-billing system with SAP
S/4 HANA and PRINCE2 systems was that an upgrade should be done to reduce errors
generated by manually transferring data from one system to another.
The accounting system has improvements and versions that are regularly updated to
suit the relevance of the system in a contemporary environment. This is achieved by
continued training of the staff by the authorized dealers of the packages, hence
remaining well equipped with the knowledge and experience of the system. Best
practice will require that system audit logs be periodically reviewed for potential
security incidents and security breaches. Therefore, internal audit reviews should give
more emphasis to appraisal and checking of the strength of instituted controls within
computerized accounting systems especially the audit logs at Umeme, and the removal
of obsolete systems.