The Effect of Computerised Accounting System On the Quality of Financial Reporting in Corporate Utilities; A Case of National Water and Sewerage Corporation, Mbarara Branch

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TABLE OF CONTENTS

DECLARATION

APPROVAL

DEDICATION

ACKNOWLEDGEMENT iv

LIST OF ABBREVIATIONS x

ABSTRACT xi

CHAPTER ONE 1

GENERAL INTRODUCTION 1

1.0 Introduction 1

.1 Background to the Study 1

1 .2 Problem Statement 4

1.3 Objectives of the study 5

1.3.1 Major Objective 5

1 .3.2 Specific Objectives 5

1 .4 Research Questions 6

1.5 Scope of the study 6

1.5.1 ContentScope 6

1.5.2 Geographical Scope 6

1.5.3 TimeScope 6

1.6 Significance of the Study 6

1.7 Justification of the study 7

8 Definition of Key terms 7

1 .9 Conceptual Framework 9

1.10 Conclusion 11

CHAPTER TWO 12

V

LITETRATURE REVTEW .12

2.0 Introduction 12

2.1 Theoretical Review 12

2. 1 .1 The Technology Acceptance Model (TAM) 12

2.1 .2 Agency Theory 13

2.1.3 Unified Technology Acceptance user theory 13

2.2 Computerized Accounting systems 14

2.2.1 Computerized Transaction Processing Systems (TPS) 16

2.2.2 Computerised Reporting Systems 17

2.2.3 System Security 18

2.3 Quality of Financial reporting 19

2.4 Factors that influence the quality of financial reports 21

2.4.1 Timeliness of Reports 21

2.4.2 Comparability of Reports 21

2.4.3 Understandability 22

2.4.4 Verifiability 22

2.5 Specific Objectives 23

2.5.1 The Effect of transaction processing system on quality of financial reports 23

25.2 The Effect of reporting system on quality of financial reports 24

2.5.3 The Effect of system security on quality of financial reports 25

2.6 Other Factors 25

2.6.1 Accuracy of Reports 25

2.7 Conclusion 26

CHAPTER THREE 27

METHODOLOGY 27

3.0 Introduction 27

vi

3.1 R.esearcli 1)esign .27

3.2 Area ofStudy .27

3.3 Population ofthe Study 27

3.4 Sampling Pr~]tire 28

3.4.1 Sample Size 28

3.4.2 Sampling 1’echiiique 28

3.5 Data Collection ?vfetliods amid Instruitients 29

3.5.1 Data Collection l~4ethocls 29

3.5.2 Data Collection Instruments 29

3.6 Quality Control Ivlethods .. 30

3.6.1 Reliability 30

3.6.2 Validity 31

3.7 Data i~4anagenient and l’rocessing 31

3.8 Data Analysis 32

3.8.1 Quantitative data analysis 32

3.8.2 Qualitative data analysis 32

3.9. Ethica.l Considerations .33

3.10 I..inuitations ofthe Study ....33

3.1 1 Conclusion 34

C~FOU1i 35

PRESENTATION, ANALYSIS AND DISCUSSION OF FINDiNGS 35

4.0 Introduction .35

4.1 Itesponse itate 35

4.2 Background Information ofRespondents.

4.2.1 The age ofrespondents

4.22 Gender ofRespondents

vu

4.2.3 Period Worked with NWSC-Mbarara Branch 37

4.2.4 Level of Education 38

4.2.5 Computer Literacy 38

4.3 Computerised Accounting Systems and Quality of Financial Reports 39

4.3.1 Objective one: A descriptive analysis to examine the effect of transaction processing

systems on the quality of financial reporting in NWSC, Mbarara branch 39

4.3.2 Objective Two: A descriptive analysis to examine the effect of computerised

reporting systems on the quality of financial reporting in NWSC, Mbarara branch 42

4.3.3 Objective Three: A descriptive analysis to examine the effect of systems security on

financial reporting in NWSC, Mbarara branch 43

4.3.4 Descriptive Analysis of Quality of Financial Reporting 45

4.4 Correlational analysis 47

4.4.1 Correlation between Transaction Processing Systems and Quality of Financial

Reports 48

4.4.2 Correlations between Reporting Systems and Quality of Financial Reports 48

4.4.3 Correlations between Systems Security and Quality of Financial Reports 49

4.4.4 Correlations between Computerised accounting systems and Quality of Financial

Reports 50

4.6 Regression Analysis 51

4.6.1 Regression Model Summary of Transaction Processing System and Quality of

Financial Reports 51

4.6.2 Regression Model Summary of Computerised Reporting Systemsand Quality of

Financial Reports 52

4.6.3 Regression Model Summary of Systems Security and Quality of Financial

Reports 53

4.7 Conclusion 54

CI-IAPTER FIVE 55

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 55

5.0 Introduction 55

5.1 Summary of findings 55

viii

5.1.1 The effect of Transaction Processing System on the Quality of Financial Reports 55

5.1.2 The effect of Reporting Systems on the Quality of Financial Reports 55

5.1.3 The Effect of Systems Security on the Quality of Financial Reporting 56

5.2 Conclusions 56

5.2.1 The effect of Transaction Processing System on the Quality of Financial Reports 57

5.2.2 The effect of Reporting Systems on the Quality of Financial Reports 57

5.2.3 The Effect of Systems Security on the Quality of Financial Reporting 57

5.3 Recommendations 57

5.3.1 The effect of Transaction Processing System on the Quality of Financial Reports 57

5.3.2 The effect of Reporting Systems on the Quality of Financial Reports 58

5.3.3 The Effect of Systems Security on the Quality of Financial Reporting 58

5.4 Suggestions for Further Research 58

REFERENCES 59

APPENDICES 66

ABSTRACT The study conceptualised 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 ofthe whole population Punch (2003). Findings revealed moderate positive relationship between computerised 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 Onancial reports is explained by computerised 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 computerised accounting systems and quality of financial reports with the total outcome positive effect of 27.8% of computerised accounting systems towards quality of financial reports. The study reviewedprevious studies focussing 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 computerised accounting systems most especially the audit logs to remove obsolete systems in the NWSC Mbarara branch.

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APA

Frontiers, E. & MAUREEN, K (2022). The Effect of Computerised Accounting System On the Quality of Financial Reporting in Corporate Utilities; A Case of National Water and Sewerage Corporation, Mbarara Branch. Afribary. Retrieved from https://afribary.com/works/the-effect-of-computerised-accounting-system-on-the-quality-of-financial-reporting-in-corporate-utilities-a-case-of-national-water-and-sewerage-corporation-mbarara-branch

MLA 8th

Frontiers, Edu, and KABAZARWE MAUREEN "The Effect of Computerised Accounting System On the Quality of Financial Reporting in Corporate Utilities; A Case of National Water and Sewerage Corporation, Mbarara Branch" Afribary. Afribary, 19 Aug. 2022, https://afribary.com/works/the-effect-of-computerised-accounting-system-on-the-quality-of-financial-reporting-in-corporate-utilities-a-case-of-national-water-and-sewerage-corporation-mbarara-branch. Accessed 29 Sep. 2022.

MLA7

Frontiers, Edu, and KABAZARWE MAUREEN . "The Effect of Computerised Accounting System On the Quality of Financial Reporting in Corporate Utilities; A Case of National Water and Sewerage Corporation, Mbarara Branch". Afribary, Afribary, 19 Aug. 2022. Web. 29 Sep. 2022. < https://afribary.com/works/the-effect-of-computerised-accounting-system-on-the-quality-of-financial-reporting-in-corporate-utilities-a-case-of-national-water-and-sewerage-corporation-mbarara-branch >.

Chicago

Frontiers, Edu and MAUREEN, KABAZARWE . "The Effect of Computerised Accounting System On the Quality of Financial Reporting in Corporate Utilities; A Case of National Water and Sewerage Corporation, Mbarara Branch" Afribary (2022). Accessed September 29, 2022. https://afribary.com/works/the-effect-of-computerised-accounting-system-on-the-quality-of-financial-reporting-in-corporate-utilities-a-case-of-national-water-and-sewerage-corporation-mbarara-branch