EFFECTIVENESS OF COMPUTERIZED ACCOUNTING

INFORMATION SYSTEM IN ENHANCING PUBLIC SECTOR

REPORTING.
AN ASSESSMENT OF EFFECTIVENESS OF COMPUTERIZED
ACCOUNTING INFORMATION SYSTEM IN ENHANCING
PUBLIC SECTOR REPORTING;
A CASE OF TANZANIA ENGINEERING AND
MANUFACTURING DESIGN ORGANIZATION

By
Sinai Taniel Gomah

A research report submitted in Partial fulfillment of the requirements for

award of the Bachelor Degree in Accounting and Finance in Business Sector
(BAF) Mzumbe University.

2021
 CERTIFICATION
We, the undersigned, certify that we have read and hereby recommend for
acceptance by Mzumbe University, a research work entitled, Assessment of
effectiveness of Computerized Accounting Information System in enhancing public
sector reporting, in partial fulfillment of the Bachelor Degree of Accounting and
Finance in Business Sector of Mzumbe University.

Signature
___________________________
Major Supervisor

Signature
___________________________
Internal Examiner

i
 DECLARATION AND COPYRIGHT
I, Sinai Taniel Gomah, declare that this research report is my own original work and
that it has not been presented and will not be presented to any other university for a
similar or any other degree award.

Signature ___________________________

Date________________________________

This research report is a copyright material protected under the Berne Convention,
the Copyright Act 1999 and other international and national enactments, in that
behalf, on intellectual property. It may not be reproduced by any means in full or in
part, except for short extracts in fair dealings, for research or private study, critical
scholarly review or discourse with an acknowledgement, without the written
permission of Mzumbe University, on behalf of the author.

ii
 ACKNOWLEDGEMENTS
I am greatly honored for the opportunity I had to pursue my bachelor degree in
Accounting and Finance in Business Sector in Mzumbe University.

I also sincerely acknowledge and appreciate great advice and collaboration showed
to me by my supervisor Mr. Stewart Mbegu, indeed, working with him made the
mountain of this research seem to be gentle slope all the way through. Most heartfelt
appreciation for ready response and cooperation from all the respondents and
workers at Tanzania Engineering and Manufacturing Design Organization

I thank my family and relatives for believing in me, encouraging me through ups and
down most of all being there for me every time I needed them. I can’t find the right
words to express my most heartfelt appreciation. May God bless them all.

Most of all, I thank God the almighty for giving me good health and strength to
concentrate my efforts into accomplishing the sole purpose of this research work.

iii
 LIST OF ABBREVIATIONS
ACCA Association of Chartered Certified Accountants
AIS Accounting Information System
CAG Controller Auditor General
CAS Computerized Accounting System
CAIS Computerized Accounting Information System
ERP Enterprise Resource Planning
GAAP Generally Acceptable Accounting Principles
ICT Information and Communication Technology
ID Identity Document
IPSAS International Public Sector Accounting Standards
IT Information Technology
PC Personal Computer
TEMDO Tanzania Engineering and Manufacturing Design Organization

iv
 ABSTRACT

In spite of the importance of Computerized accounting system, there are many public sector
organizations that have not implemented the system in Tanzania. This eventually has led to
incidences of delays in preparation of financial reports, misreporting of financial statements,
misrepresentation of financial information which leads to distortion of information. The
study aims at assessing the effectiveness of computerized accounting information system in
enhancing public sector reporting case of Tanzania Engineering and Manufacturing Design
organization (TEMDO) in Arusha, Tanzania. The specific objectives of this study sought to
identify challenges faced by the organization when using Computerized Accounting
Information System (CAIS) in financial reporting, assess the level of usage of CAIS in the
organization, and to assess the performance of the organization with respect to adoption of
Computerized Accounting System (CAS). The study used mainly Primary data from 40
respondents who were purposefully selected. The study adopted a case study research
design. The sample was generated from the number of employees working in the
organization from four departments that are accounting and finance, information technology
department, procurement and supply department and the Director General. Purposive
sampling technique was used to select as sample of 40 respondents from a population of 68
people. The data was analyzed by means of descriptive statistics whereby the SPSS package
was applied to summarize the data alongside the use of relevant frequency tables leading to
meaningful inferences. Data was collected through observation, documentary review and
questionnaires. The results revealed that, CAIS is very effective in some aspects but
moderate in some other aspects in enhancing financial reporting. Some aspects of the
variables were strongly agreed upon while others were just agreed, were neutral and even
disagreed. Most of the respondents strongly agreed or at least agreed that CAIS is effective
in enhancing financial reporting of the organization although some variables such as
infrastructure, ease of use, internal control and security had a variety of responses than those
of strongly agree and agree. Furthermore, the study indicates that the organization faces the
following problems associated with usage of CAIS; Unstable internet connection, Data
corruption, Cost of installation, updates and Training, Electric power blackout and Lack of
complete and integrated CAIS. The study recommends that in order to ensure that public
sectors have quality financial reports; they should invest on computerized accounting system
to improve the speed, accuracy, timeliness and relevance of the financial reports of the
organizations. The government should also capitalize in providing training to its employees
to keep them updated with the changes in technology so as to achieve higher performance.

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 TABLE OF CONTENTS

CERTIFICATION.........................................................................................................i

DECLARATION AND COPYRIGHT........................................................................ii

ACKNOWLEDGEMENTS........................................................................................iii

LIST OF ABBREVIATIONS.....................................................................................iv

ABSTRACT.................................................................................................................v

CHAPTER ONE.........................................................................................................1

INTRODUCTION AND PROBLEM SETTING.....................................................1

1.0 Overview of the chapter..........................................................................................1

1.1 Background of the Study........................................................................................1

1.1.1 Background of the organization…………………………..…………………….2

1.2 Statement of the Problem………………………………………………………....3

1.3 Research Objectives................................................................................................4

1.4 Research Questions.................................................................................................4

1.5 Significance of the study........................................................................................4

1.6 Limitation of the study............................................................................................5

CHAPTER TWO........................................................................................................6

LITERATURE REVIEW...........................................................................................6

2.0 Introduction.............................................................................................................6

2.1Theoretical Literature Review.................................................................................6

2.2 Accounting Concept...............................................................................................7

2.3. Accounting Information System............................................................................7

2.3.1 Characteristics of Accounting Information Systems...........................................9

2.3.2 Components of Accounting Information Systems...............................................9

2.4 Computerized Accounting System.........................................................................9

2.4.1 Functions of Computerized Accounting Software............................................10

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2.4.3 Measures of CAIS effectiveness........................................................................11

2.4.3.1 Perceived Usefulness......................................................................................11

2.4.3.2 Infrastructure...................................................................................................11

2.4.3.3 HR capacity/competency (Knowledge, Skills and Attitude)..........................11

2.4.3.4 Ease of use.....................................................................................................12

2.4.3.5 Internal Control Systems.................................................................................12

2.4.3.7 Security...........................................................................................................14

2.4.5.1 Cost................................................................................................................16

2.4.5.2 Perceived Use.................................................................................................17

2.4.5.3 Infrastructure...................................................................................................17

2.4.5.5 Manager’s Support..........................................................................................18

2.4.5.6 Internal Control...............................................................................................19

2.5 Financial Reporting..............................................................................................19

2.5.1 The Objective of Financial Reporting...............................................................20

2.5.2 Quality of Financial Information.......................................................................20

2.5.3 Qualitative Characteristics of Useful Financial Information.............................21

2.5.3.1Relevance.........................................................................................................21

2.5.3.2 Faithful Representation...................................................................................21

2.5.4 Enhancing Qualitative Characteristics...............................................................21

2.5.4.1 Comparability.................................................................................................21

2.5.4.2 Verifiability.....................................................................................................21

2.5.4.3 Timeliness.......................................................................................................21

2.5.4.4 Understandability............................................................................................22

2.5.5 Financial Reporting Framework in Tanzania....................................................22

2.6 Relationship between Computerized Accounting System and Financial Reporting

....................................................................................................................................22

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2.7 Empirical Literature Review.................................................................................23

2.8 Research Gap........................................................................................................26

CHAPTER THREE..................................................................................................28

RESEARCH METHODOLOGY............................................................................28

3.0 Introduction...........................................................................................................28

3.1 Research Design…………………………………………………………………29

3.2 Area of Study……………………...…………………………………………….29
3.3 Study Population…………...……………………………………………………30
3.4 Sampling Techniques……………………………………………………………30
3.4.1 Purposive Sampling………………...…………………………………………30
3.5 Sample size………………………….…………………………………………..31
3.6 Data Collection Methods......................................................................................30

3.6.1 Primary Data Sources………………………...……………………………….31

3.6.1.1 Observation………………………………………………………………….31
3.6.1.2 Questionnaire………………………………………………………………..31
3.6.2 Secondary Sources of data…………………………………………………….31
3.7 Data Analysis……………………………………………………………………32
CHAPTER FOUR......................................................................................................32

PRESENTATION AND DISCUSSION OF THE FINDINGS.............................32

4.0 Introduction...........................................................................................................32

4.1 Demographic characteristics of the respondents..................................................32

4.1.1 Sex of respondents……………………………….……………………………33

4.1.2 Age Group………………………………………………….………………….34

4.1.3 Marital Status.....................................................................................................33

4.1.4 Education Level.................................................................................................34

4.1.5 Work Experience...............................................................................................34

4.1.6 Work Group.......................................................................................................35

4.2 Result and discussion of the findings...................................................................35

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4.2.1Analysis of Effectiveness of CAIS in enhancing Financial Reporting...............36

4.2.1.1 Perceived Usefulness......................................................................................36

4.2.1.2. Infrastructure………………………………………………………………..38

4.2.1.3 Human Resource Capacity………………………..…………………………39

4.2.1.4 Ease of Use.....................................................................................................38

4.2.1.5 Internal Control System..................................................................................39

4.3. Challenges faced by the organization when using CAIS in financial reporting..41

CHAPTER FIVE......................................................................................................43

SUMMARY, CONCLUSION AND RECOMMENDATIONS............................43

5.0 Introduction...........................................................................................................43

5.1 Summary...............................................................................................................43

5.2 Conclusion............................................................................................................43

5.3 Recommendations.................................................................................................44

5.4 Recommendations for Further Research..............................................................44

REFERENCES...........................................................................................................45

APPENDIX.................................................................................................................51

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 LIST OF TABLES

Table 4.1: sex of respondents……………………………………………………….33

Table 4.2: Age group of respondents…………………………………………….....33

Table 4.3: Marital status of respondents…………………………………………....34

Table 4.4: Education level……………………………………………………….…34

Table 4.5: Work experience of the respondents………………………………........35

Table 4.6: Work group……………………………………………………………...35

Table 4.7: Perceived usefulness……………………………………………….…...36

Table 4.8: Infrastructure……………………………………………………….…...36

Table 4 .9: Human Resource Capacity………………………………………….….37

Table 4.10: Ease of Use

Table 4.11: Internal Control System…………………………………………….…39

Table 4.12: Flexibility…………………………………………………………...…39

Table 4.13: Security……………………………………………………………..…40

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 CHAPTER ONE
INTRODUCTION AND PROBLEM SETTING

1.0 Overview of the chapter

This introductory chapter presents the background of the study, statement of the
problem, objectives of the study, research questions, scope of the study, significance of
the study, and limitations of the study.

1.1 Background of the Study

Computerized accounting system (CAS) was introduced in Tanzania Public Institutions
in 1992, where before the introduction of computerized accounting system the
accounting practice was performed manually. Manual accounting was the most popular
method of accounting until 1980s when the arrival of fast computers but also accurate
and reliable software started. The information were collected from transaction records
and made their compilation into financial reports (Weber, 2011).

The CAS deals with recording accounting transactions using computer through various
accounting packages and stored during a database. The elemental of computerized
accounting includes all the essential requirements of any database learning. The
appliance of computer systems helps within the simplification and integration of all
business processes, cost efficiency and helps to present exactly all the business
undertakings to stakeholders of monetary reports.

Rapid changes in technology have led to organizations being able to track monetary
transactions with computerized software. Morivic (2009) contended that computerized
utilization offers assistance to limit human mistakes, loss of monetary exchange in
computer, using computerized accounting system was safer rather than keeping
financial activity manually by using ledger transactions.

Main computerized accounting systems used in public sectors in Tanzania are EPICOR
9, MS excel, TISS, Pastel, Tally and QuickBooks. Several studies on computerized

1
accounting system and organization performance were conducted in organizations to
investigate the impact of computerized accounting system in preparation and publishing
of financial reports (Imeokparia and Olajire, 2013).

Public sector is the part of the economy composed of both public services and public
enterprises. It is usually comprised of organizations that are owned and operated by the
government and exist to supply services for its citizens. Public sector financial
reporting is meant to supply candidates with the technical knowledge and skills
required to perform financial reporting responsibilities within the general public sector.
Public sector organizations have special Accounting departments which are liable for
managing organization’s transactions and financial reporting whereas within the past,
all accounting procedures where taken care of manually until the government ruled out
the policy of employing Computerized Accounting data system as how of maintaining
accounts.

Several studies on computerized accounting system and organization performance

were conducted in organizations to investigate the impact of computerized accounting
system on preparation and publishing of financial reports. Otieno and Oima (2013)
examine the effect of computerized accounting system on audit risk management in
public enterprises; Yaser (2013) investigated the effect of computerized accounting
system in income tax departments to check the effectiveness of tax audit and collection;
and El-Dalabeeh (2012) looked into medical services to understand how computerized
accounting information system is used to reduce costs of medical services.

Not much has been done on Computerized Accounting effectiveness in Public sector
reporting in Tanzania whereas, this study intended to assess the effectiveness of
computerized accounting information system in public sector reporting in Tanzania
with a special focus on Tanzania Engineering and Manufacturing Design Organization
as the case study.

1.1.1 Background of the organization

The Tanzania Engineering and Manufacturing Design Organization (TEMDO) is an

applied R&D institution under the ministry of Industry, trade and investment. TEMDO

2
 was established through act of parliament No. 25 of 1980 and began its operations in
July 1982 with the mission of promoting engineering design, technology development
and enhancement of competitiveness of local manufacturing enterprises through
provision of varied technical support services. TEMDO is the leading industrial support
organization within the development and promotion of commercial machinery and
equipment in Tanzania. TEMDO is predicated within the city of Arusha, which is the
hub of the Northern Tourist circuit of Tanzania.

1.2 Statement of the Problem

As information technologies grow gradually, manual accounting systems are gradually

incomplete for crucial needs (Brecht and Martin, 1996). Therefore, the public sector in
both economies of CAIS develop and develop as a means to ensure the efficiency and
efficacy of data streams in recording, processing and analysis of data currencies.
Effective and efficient flow of information improves the administrative decision, which
increases the company's ability to achieve the strategic and business goals of the
company (Manson, McCartney and Sherer, 2001). However, there are a number of
challenges in communication technology information relating to computer accounting
information systems in Tanzania while the information technology is promoting mainly
focused in Dar Sal Salam, as recorded by URT (2003). Among the Measures of the
Government to improve the increase in efficiency in the field of public practice is the
introduction of computer booking systems such as tally, pastel, epicor and quickbooks.
The introduction of CAS aims to improve speed, accuracy and reliability. Although there
are false reports and fraud (CAG, 2012) in many public organizations, in many public
organizations, accounting incidents, delays in the preparation of money reports, financial
and fraud. This creates a shadow of doubts about the introduction of CAS has helped to
improve efficiency in accounting activities. Although many studies have been carried out
at the impact of CAS effects in the impact of accounting methods, only a few or no
studies focused on the effectiveness of CAIS in the improvement of the area in
connection with the field of public sector in Tanzania and now has the bad Attention to
the poor financial management and the performance of the world. Therefore, an

3
efficiency study and therefore concerns the elements of CAIS in degrees in the public
sector of great importance.

1.3 . Research Objectives

These are the specific objectives of the study

i. To assess whether and to what extent Computerized accounting information

system has been effective in enhancing financial reporting in public sectors.
ii. To identify challenges faced by the organization when using Computerized
Accounting information system in financial reporting.
iii. To assess the level of usage of computerized accounting system in the
organization.

1.4 Research Questions

This study sought to answer the following questions

i. What is the effectiveness of computerized accounting information system in

enhancing public sector reporting?
ii. What are the challenges encountered with the use of CAS in public sector
organizations?
iii. What is the level of usage of computerized accounting system in a public sector
organization?

1.5 Significance of the study

The study is a partial requirement for an award of Bachelor Degree of Accounting and
Finance in Business Sector of Mzumbe University. The study focuses on determining
the extent to which public sector organizations gain from the use of CAIS in preparing
financial reports. This research will give knowledge to accounting information users
such as investors, current and future preparers of financial reports about the influencing
factors and effectiveness of CAS in generation of financial reports within public
sectors. Also this research will make the government, auditing authorities, preparers of
accounting standards and accounting software developers aware of the real situation

4
those users of CAS experience when generating financial reports which will contribute
to making adjustments or adding some more features to the Computerized Accounting
Systems that will be in line and relevant to our organizations accounting information
system needs.

1.6 Limitation of the study

The study focused on only one organization and CAIS used is not necessarily the same
for each organization hence the results may not be appropriate for every public sector
organization. The scheduled time exceeded the frame; this also affected the budget and
plan of the whole report. The researcher thought that data collection processes to be
carried out in accordance with the time frame established. On the way forward in
addressing that limitation, researcher focused only on the selected organization.

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 CHAPTER TWO
LITERATURE REVIEW

2.0 Introduction
This chapter presents Theoretical Literature Review, Empirical Literature Review,
Research Gap and Conceptual Framework. Kothari (2004), literature review is something
to do with reading what other authors have written about the research, so as to know what
others have done similarly or differently with the research being studied.

2.1Theoretical Literature Review

In this section of literature review there are definition of terms and theories explained. This
section reviewed the theory that are developed to review the difficulty of adoption of
computerized accounting systems (CAS) as an information technology (IT) which include
(Davis, 1989) the Technology Acceptance Model (TAM)

2.1.1 Technology Acceptance Model

The Technology Acceptance Model (TAM) is an information system theory that stipulates
how users come to accept and use a technology. The model suggests that when users are
presented with a new technology, two specific factors influence their decision about how
and when they will use it. The two factors are perceived usefulness (PU) and perceived
ease of use (PEOU) (Davis, 1989).

TAM has proven to be a useful theoretical model in helping to know and explain user
behavior within the data system implementation. It is been tested in many empirical
researches and therefore the tools used with the model have proven to be of quality and to
yield statistically reliable results. However, parsimony has been one among TAM’s
strengths but also major weakness because it is has limited use in explaining users’
behavior.

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 As a result of the shortcomings, many authors have extended TAM with additional
constructs. Mbogo (2010) for instance, employed TAM and extended it to include other
factors such as perceived ease of accessibility, perceived low cost, perceived security,
perceived convenience, perceived satisfaction and perceived support to investigate the
success factors attributable to use of CAS. Tobbin (2011) modeled adaptation of CAS
expanding TAM and DoI to investigate the consumer behavior towards CAS adaptation in
Ghana. Similarly, Bosire (2012) adapted DoI alongside TAM to explain factors which
contributed to success of adaptation of new technologies. Similarly, Odia (2012) applied
TAM with additional factors such as perceived trust, security, and perceived convenience.

2.2 Accounting Concept

Accounting has been defined by many authors. According to R.N Anthony, “nearly every
business enterprise has accounting system. It is a means of collecting, summarizing,
analyzing and reporting in monetary terms information about the business”

Smith and Ashburne, “accounting is the art of recording, classifying and summarizing in a
significant manner and in terms of money, transactions and events which are in part at least
of financial character and interpreting the results thereof”. Weber (2011) pinpoints that
business owners controlled their organization financial report using accounting
procedures. Sacco (2008) gives out more clarification that accounting deals with a system
in which financial reports used as the key factors that used by stakeholders as major
communication, summarized, analyzed, and interpreted which facilitated by accounting
software, and computer –based like internet pin point by( Bretch and Martin 2006; Marivic

2009).

From above definitions, it’s clear that accounting communicates the real picture to the
interested users about economic activities that have affected the business and give them a
base for making appropriate decisions.

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2.3. Accounting Information System
Over time, the concept of AIS has changed from one that focused on the supply of more
formal, monetarily quantifiable information to assist in deciding processes to at least one
that now encompasses a considerably broader spectrum of knowledge.
Focus, orientation, time horizon, aggregation, integration, timeliness, financial and non-
financial, and quantity are a number of the variables that are used to reflect the planning of
AIS.

Defining AIS has been difficult to day and research during this area is sort of diverse. It
includes behavioral studies of audit decision - making tools, field studies of organizational
systems, design, development of ledger systems, and development of accounting models
that effectively utilize advancement in technology, application of various technology
solutions to AIS situations, and lots of other sorts of studies.

Bocholt (1999) defined Accounting Information System as system that operate the
functions of data gathering, processing, categorizing and reporting financial events with the
aim of providing relevant information for the purpose of record keeping, attention directing
and decision making.

Nikolaou (2000) as cited in Adebayo, Idowu and Bolarinwa (2013) explained that AIS is a
computer based system that increases the control and enhances the cooperation in the
organization.

Similarly, day-to-day operations managers demand a good range of monetary and non-
financial performance measures. Therefore, if AIS goes to permit today's accountants to
supply the knowledge decision makers need, it should meet the subsequent definition;

An accounting data system is one that takes, saves, manipulates, and shows data a few
company's value-adding operations to assist decision makers plan, monitor, and oversee the
corporate . Financial accounting systems, which have the first objective of making financial
statements in conformity with Generally Accepted Accounting Principles, are undoubtedly
included during this description.. These systems also must provide performance
measurements (financial and non-financial) and help to enforce internal control objectives.
They include transaction processing systems (such as billing systems for sales processes),

8
inter-organizational systems that share data with upstream and downstream partners (such
as web-based-order systems and electronic data interchange cash receipt processing), and
support systems. This permits economic exchanges (such as order processing, customer
marketing research, and internal control systems)

Therefore, an Accounting data system is one that translates representations of economic

activities into a format that's valuable to accountants and to accounting information users
who need information about economic activities. Accountants are being pressured to
redefine their contribution to organizations and to expand the scope of their activities
beyond budget preparation and analysis. They are being called upon to become active
enterprise-wide team members who provide information and guidance in strategic decision-
making salutations.

2.3.1 Characteristics of Accounting Information Systems

According to Stambaugh; Carpente (1992) the Accounting Information System has the
following characteristics: Provided on timely basis, presented in an aesthetically appealing
format, Relevant to the decisions at hand, Concise, yet sufficient in scope to allow” what-
if” analysis and Flexible to interface with information from other functional units.

2.3.2 Components of Accounting Information Systems

An accounting consists of the personnel, producers, devices, and records employed by a
corporation to develop accounting information and to speak this information to decision
makers. The planning and capabilities of those systems vary greatly from one organization
to subsequent. In very small business, the accounting may contains little quite a register , a
check book, and an annual trip to an tax prepared. In large business, an accounting system
includes computers, highly trained personnel, and accounting reports that affect the daily
operations of every department (Meigs, R. 1986).

2.4 Computerized Accounting System

Computerized accounting involves the utilization of computers to handle large volume of
knowledge with speed, efficiency and accuracy aimed toward overcoming the elemental

9
however, doesn't mean change in theory, the principle of accounting remains the
restrictions of manual accounting and hence producing quality and reliable work same with
day books ledgers double-entry bookkeeping only that the accounting processing is
completed by computer packages (ACCA, 2007).

A computerized accounting system is a delivery system of accounting information for

purpose such as providing reliable accounting information to users (Nash and Hearly,
2003).

Computerization of system can certainly help in minimizing some errors when preparing
accounting records (Mike et al, 2006).

Other view adds that computerized systems are advantageous in consolidating information
channels meaning that files which had previously been duplicated by several departments
are now consolidated into a single file (Mc Rae, 1998).

A computerized accounting is a system that uses computers to input, process, store and
output accounting information in sort of financial reports. It records all transactions that
routinely affect the events that affect the financial position and performance of the entity.

2.4.1 Functions of Computerized Accounting Software

Accounting software is employed to implement computerized accounting. The
computerized accounting is predicated on the concept of database; it's the essential
software which allows access to the info contained within the database. The subsequent are
the functions of computerized accounting software.

2.4.2.1 Preparation of Accounting Documents:

Computers help in preparing accounting documents like cash memo, bills, invoices and
accounting vouchers. Here computerized accounting systems have user defined templates
which can provide faster, accurate entry of transactions and thus all documentation and
reports are often generated automatically.

2.4.2.2 Recording of Transactions:

10
Everyday business transactions are recorded with the assistance of computer software.
Every account and transactions is assigned a singular code where the grouping of account
is completed at the primary stage. This process simplifies the work of recording the
transaction. Marivic (2009) argued that computerized packages will minimize human errors
in recording transactions.

2.4.3 Measures of CAIS effectiveness

2.4.3.1 Perceived Usefulness
Quality information is critical to organizations success in today’s highly competitive
environment. Accounting information systems (AIS) as a discipline within information
systems require top quality data. However, empirical evidence suggests that data quality is
challenging in AIS. Therefore, knowledge of critical factors that are important in ensuring
data quality in accounting information systems is desirable. (Hongjiang, 2003) and Kim
(1989) argues that usage of AIS depends on the perception of the quality of information by
the users. Generally, the standard of data depends on reliability, sort of reporting,
timeliness and relevance to the choices. Effectiveness of accounting information system
also depends on the perception of decision-makers on the usefulness of information
generated by the system to satisfy informational needs for operation processes, managerial
reports, budgeting and control within organization. (Sajady et al, 2008).
2.4.3.2 Infrastructure
It includes both the software and hardware of the system. Software is that the core of a
computerized accounting. The software components contains modules or smaller,
standalone programs. Each individual module performs different function. The modules
can include production, customer, ledger, human resources, asset management, financial
management or purchasing and inventory management modules. All modules link with
each other for sharing data. The system should be capable of exporting electronic files of
transactions and other data. Hardware includes the physical components of the system.
Computerized Accounting Systems are installed on computers with the capacity to run the
systems. Large scale accounting systems contains numerous modules and commonly
requires computers with fast processors and enormous storage capacity.

11
2.4.3.3 HR capacity/competency (Knowledge, Skills and Attitude)

The accounting system in any organization consists of a number of human parts

represented by all personnel at the accounting department who utilize the material parts
needed for accounting work such as equipment, hardware, books and records, in
accordance with established accounting rules and procedures in order to record, calculate
and deliver data into sets of financial reports and statements to all parties concerned with
making decisions (Dahmash, Abu Zir, 2004). Individuals are among the foremost important
components of accounting systems. The importance of people within the accounting data
system increases under work for electronic purposes, in terms of the supply of qualified
individuals and their ability to perform accounting tasks using modern technology with
multiple entities associated with the economic unit where they operate, additionally to the
rise in data and knowledge required to be collected, processed and delivered to
stakeholders. The effective Accounting Information System must involve the
understanding of how people work and the social practices involved inside it (Indeje and
Zheng, 2010: 4). User competence is one of the factors that influence the success or failure
of an organization/company in implementing information systems (O’Brien and Maracas,
2009).
Research that was conducted by Taber et.al (2014) produces empirical evidence that there's
a big positive effect between user’s competences and therefore the performance of
Accounting Information Systems.

2.4.3.4 Ease of use

It is the extent to which the CAIS system’s interface is straightforward to interact with and
perform the required activities.

2.4.3.5 Internal Control Systems

The modern information era is totally reliant on CAIS, but it has become increasingly
sophisticated and reliant on technology to satisfy information needs. Due to the complexity
and relevance of CAIS, businesses must make sure that they need enough control over their
existing CAIS. The business examines the system at various times to make sure its

12
adequacy. Actually control is that the process of exercising influence over the activities of
an object, organism or system. CAIS involve processing of transactions as a way of
maintaining financial records. Such systems identify, assemble, analyze, classify, record,
summarize and report transactions and other events. Internal controls include all the
policies and procedures adopted by the management of an entity to help in achieving
management’s objective of ensuring, as far as practicable, the orderly and efficient conduct
of its business, including adherence to management policies, the safeguarding of assets, the
prevention and detection of fraud and error, the accuracy and completeness of the
accounting records, and therefore the timely preparation of reliable financial information.
control may be a process, suffering from an entity’s board of directors, management and
other personnel, designed to supply reasonable assurance regarding the achievement of
objectives three categories like reliability of monetary reporting, compliance with
applicable laws and regulations and effectiveness and efficiency of operations. Effective
control systems are essential for successful operation of business also as accounting control
and administrative control. It helps the Accounting Information Systems division to get
reliable and relevant information. The computerized accounting must provide input edits
and controls to assure that information entered into the system is accurate, that each one
appropriate information is entered into the system, which information is entered into the
system just one occasion. All information entered into the system must be authorized
through effective manual or electronic controls. Transaction dates should be based upon
system generated dates which can't be modified by the user. If necessary, the system may
provide a further effective date of the transaction that's user controlled. As it was cited by
Bhourat Kombo (2013) in his study, the consequences of computerized accounting on
auditing process: a case study of Mtwara district council (MDC), Cengage (2011)
investigated the impact of accounting data system knowledge and audit effectiveness in
Thailand. The results of the study revealed that, knowledge of CAS, the danger assessment
competency and quality planning judgments are the factors which affect audit effectiveness
in computerized environment.

2.4.3.6 Flexibility

13
Information generated in one computer application system and transferred to a different
computer application system must be accurate and complete. Both systems should generate
reports documenting record counts and therefore the dollar value totals of the knowledge
transferred to enable prompt identification of discrepancies. The necessity for flexibility of
the prevailing CAIS is compatibility of it with technology advancement, changes in
government regulations, organizational growth and increased competitions.

2.4.3.7 Security
The importance of effective management of IT security from an economic perspective
increased in recent years due to the increasing frequency and price of security breaches.
Increased interconnectivity among computers enabled by the web raised the size and scope
of data technology related crime. IT security is not any longer purely the priority of the
normal high-risk category organizations like those within the defense, military, or
government sectors. A secure environment for information and transaction flow can create
value for the organization also as its partners and customers (Hasan Cavusoglu, Husey in
Cavusoglu and Srinivasan Raghunathan, 2004). The reliance on information and
continuous changes in technology; force organizations to implement security controls that
protect Computerized Accounting Information Systems (CAIS). However, the failure to
secure the CAIS and therefore the information they contain or to form it available when it's
required can, and does, cause great financial and non-financial losses.

i. Physical Security

The computer system and therefore the associated telecommunications equipment must be
adequately shielded from environmental damage including, but not limited to, fire, water,
and physical damage by individuals. Additionally, the computer must be shielded from
unauthorized access, terminals must be inoperable when not attended by a licensed
employee, and terminals utilized to enter sensitive commands must not be positioned where
unauthorized individuals may view the contents of the display screen terminal.

ii. Logical Security

14
Effective logical security prohibits unauthorized access and restricts the computerized
resources each authorized user may utilize. Access to accounting information and processes
must be controlled by OS software and by the computerized accounting application through
user identification codes (user IDs) and passwords. User IDs are unique identifiers assigned
to every authorized user, which remain constant for that user. Passwords are confidential
keywords related to the user ID to supply verification of the user's identity. Each user must
have a singular user ID and password which must not be shared. Passwords must meet the
subsequent criteria:
a. Passwords must be changed every 30 days.
b. Passwords must be a minimum of six (6) characters in length.
c. Passwords must be a combination of alphabetic and numeric characters.
d. Passwords may not be the same for a user ID as the last five (5) passwords used by this
user ID.
e. Individuals must assign their own passwords.
f. Passwords must be encrypted while stored on the computer.
g. Reporting of security definitions and user access rights to information must be available
to, and easily understood by, Management and State Board of Account Field Examiners.
These security definitions and user access rights must enforce adequate segregation of
duties for the accounting system.
h. Users other than System Administrators and Security Administrators must be prevented
from accessing sensitive operating system commands.
i. The number of System Administrators and Security Administrators must be limited.
j. Computer programmers must not have update access to production accounting
information.
k. Users must not be allowed to be active on multiple terminals at the same time with the
same user ID.
l. User IDs must be deactivated after three unsuccessful attempts to sign on to the
computer.
m. For inactive terminals, the user must be automatically prevented from accessing the
computer after 15 minutes of no activity until the user's password is entered.

15
n. Users must be prevented from modifying or deleting operating system and computer
program files.
o. Users must be prevented from updating accounting information except through
authorized transactions within the computerized accounting application system.
p. User access rights must be eliminated or revised upon termination of employment and
transfers of employee responsibility.
The study of (Abu-Mousa, 2006), cited by Eman Al Hanini (2012), entitled by:
“Examining the threats regarding the computerized accounting information systems in the
developing countries: A field study on the Saudi organizations” aimed at identifying the
threats that threaten the accounting information systems within the Saudi companies and
therefore the study concluded that the accidental and intentional entry of bad data, the
accidental destruction of knowledge, the employees sharing of password and therefore the
introduction of the viruses into the computers are the foremost important risks which the
computerized accounting systems are often exposed to and there's no difference attributed
to the sort of the corporate or the economic sector that it belongs to.

2.4.4 Benefits of Computerized Accounting System

Different scholars have expressed their views on benefits of computerized accounting

packages as below;

A computerized package can quickly generate all types of records needed by management.
Data processing and analysis are faster and more accurate which meets the manager’s
needs for accurate and timely information for decision making (Mc Bride, 2000).

The benefits of computer accounting include among others improving reporting to users,
better record keeping and minimized errors. With the system automatically generating
reports, a lot of time will be saved in the long run and unnecessary cost. Few staff will also
be needed to operate the system (Vanbriefing, 2005).

In support of above view, computerized accounting is used to maintain journals, ledgers

and prepare financial statements (Meigs and Meigs, 1998).

2.4.5 Factors Influencing Computerized Accounting System Adoption

16
2.4.5.1 Cost

Cost can be defined generally as “any optional sacrifice with things, properties, material or
moral rights that should have an economic value, in order to obtain the present or future
benefit which it should not be less than the value at the time of completing sacrifice in the
process of the value of sacrifice (Matarneh, 2003). Cost element must even be taken under
consideration when adapting CAS so on increase the expected benefits of the system than
its preparation and implementation cost (Al- Sabagh, 2000). Ernst and Young, (2001)
stated that the value of a system is a crucial think about the adoption and utilization of the
technology. Two studies conducted by (Seyal& Rahim, 2006), concluded that cost has
direct and significant relationship on adoption of technology. Organizations reluctant to
adopt computerized accounting when its initial set-up cost is high. (Donaldkiso, 2009),
noted that computerized accounting includes equipment cost, the prices of assembly,
installation and costs of testing startup. Special trained staffs are required to work the
system. Hence, huge training costs are incurred to know the utilization of hardware and
software on endless basis because newer sorts of hardware and software are acquired to
make sure efficient and effective use of computerized accounting systems.

2.4.5.2 Perceived Use

Organization that is familiar in using any technologies with skilled staff which is more
suitable but, if any organization perceived that the technology is more complex, should
avoid using Computerized Accounting System. According to Long and MacGregor, (1996)
skill is very important factor which affect the use of computerized system. Hence,
management must make sure that the employee skills experience and knowledge of
computerized system because these knowledge and experience may influence on the
application of computerized system. Many studies by (Giovanni and Mario, 2003), have
found that ICT in general offers an organization a wide range of possibilities for improving
their competitiveness.

2.4.5.3 Infrastructure

17
It refers to structures, systems and facilities serving a corporation including the services
and facilities necessary for its operation function. Further IT infrastructure refers to
incorporate hardware, software, network resources and services required for the operation
and administration in a corporation. Strong et al, (2006) stated that ICT infrastructure
contains, ICT hardware especially Personal Computers (PCs), software and connectivity.
Hence it’s vital to form sure the supply of the required equipment, infrastructures and
technical support for smooth operation of CAS.

2.4.5.4 Human Resource

Human resource is that the main element which will contribute to the efficiency and
effectiveness of operating any system and them who use the outputs in managing the
organized matters, therefore the human element for the knowledge system is that the main
axis of a corporation . Human resource is that the essential element to undertake multiple
functions and staffs are required to possess qualifications, experiences skills and training
(Stephen, Mark and Seemkin, 1989). Consistent with (Al- Taweel, 2001) accountants lack
efficiency in fields of usage, designing, developing accounting systems and knowledge
technology. Two studies concluded separately by (Cragg& King, 1993), and (Allison,
1999), states that implementation of technology depends on the skilled and knowledgeable
manpower. Hassan, (2001), stated Human resource is that the main element that determines
efficiency and effectiveness of operating the computerized accounting. Flamholtz, et al.,
(2004) stated that Skillful and specialized human resources are of important importance for
a corporation. Organizations spend tons of cash for training and educating their workers
and employees with the recommendation of the office so as to extend the efficiency of the
function of organization under their control.

2.4.5.5 Manager’s Support

Verhage, (2009) defined that top management support is the management effort to provide
the necessary resource to run the business a grand success. In line with the above statement
Muntoro(1994) top management’s responsibility is to provide the resources and positive
command to employees whenever essential to success the business. According to Arpan
and Isaac (2005) the effectiveness of information system application is influenced by top

18
management support. Arpan and Isaac (2007) top management support is an important
factor which influences the information system in an organization.

2.4.5.6 Internal Control

Internal control is a set of rules, policies, process and procedures an organization
implements to provide reasonable assurance that; its financial reports are reliable, and
dependable its operations are effective and efficient, and its activities comply with
applicable laws and regulations. In implementing an indoor system in a corporation the role
of CAS is crucial. Internal controls, implemented by the administrator et al. , aim to supply
an inexpensive assurance of the reliability of monetary reporting, the compliance with laws
and regulations and therefore the effectiveness and efficiency of operating (Bailey, 1985;
Baird and Rasmussen, 2002; Cunningham, 2004; Gelinas et al., 1999; Korvin et al., 2004).
the standard of implementing internal controls, more often than not, is significant to take
care of success in a corporation . Thus, while implementing CAS in any organization,
management has got to concentrate to the planning of control. Internal controls typically
center on the organization’s CAS, which is that the primary function for moving financial
information through a corporation. Hence, internal controls help administrator to watch and
measure the effectiveness of their accounting operations on performance (Ponemon and
Nagoda, 1990) thus, the connection between control and CAS application would be
strengthened.

2.5 Financial Reporting

Financial Reporting is the process of producing statements that disclose an organization’s

financial status to management, investors and the government. It involves the disclosure of
financial information to management and the public about how the company is performing
over the specific period of time. Financial reporting refers to preparation of financial
statements by the business necessary in making decision by management (Kakuru, 2003).
Financial reports are usually issued on quarterly and annual basis. Financial reporting
involves the following;

19
 i. The external financial statements (income statement, statement of
comprehensive income, statement of financial position, statement of cash flow
and statement of stockholders equity)
ii. The notes to the financial statements
iii. Press releases and conference calls regarding quarterly earnings and related
information
iv. Quarterly and annual reports to stockholders
v. Financial information posted on corporation’s website
vi. Financial reports to governmental agencies including quarterly and annual
reports to the Security and Exchange Commission
vii. Prospectus pertaining to the issuance of common stock and other securities.

2.5.1 The Objective of Financial Reporting

The objective of financial reporting is to provide information that is useful to users in
making decisions relating to providing resources to the entity, (Conceptual Framework for
Financial Reporting 2018). User’s decision involves decisions about;

i. Buying selling or holding equity or debt instruments

ii. Providing or settling loans and other forms of credit
iii. Voting or otherwise influencing management’s actions.
To make these decisions users assess prospects for future net cash inflows to the entity and
management’s stewardship of the entity’s economic resources.

To make both these assessments, users need information about both the entity’s economic
resources, claims against the entity and changes in those resources and claims and the way
efficiently and effectively management has discharged its responsibilities to use the entity’s
economic resources.

2.5.2 Quality of Financial Information

Good financial reporting is all about presenting useful information to users so that proper
decision can be made and data presented. Financial reporting should provide information

20
about entity’s economic resources, claims against those resources, owner’s equity and
changes in the resources and claims (Frank wood, 1999).

2.5.3 Qualitative Characteristics of Useful Financial Information

For information to be useful it must both be relevant and provide faithful representation of
what it purports to represent. Relevance and faithful representation are the fundamental
qualitative characteristics of useful financial information, (Conceptual Framework for
Financial Reporting 2018).

2.5.3.1Relevance
Information is relevant if it is capable of making a difference to the decisions made by
users. Financial information is capable of making a difference in decision making if it has a
predictive value or confirmatory value.

2.5.3.2 Faithful Representation

Information must faithful represent substance of what it purports to represent. A faithful
representation is, to the maximum extent possible, complete, neutral and free from error. A
faithful representation is affected by level of measurement uncertainty.

2.5.4 Enhancing Qualitative Characteristics

2.5.4.1 Comparability
Comparability enables investors, lenders and other creditors to identify and understand
similarities in, and differences among items. For information to be comparable, like things
must look alike and different things must look different.

2.5.4.2 Verifiability
Verifiability lends credibility to financial information by providing assurance that
information faithfully represents what it purports to represent.

2.5.4.3 Timeliness
It means that information is available to investors, lenders and other creditors in time to be
used in their decision making process.

21
2.5.4.4 Understandability
Understandability means that information that may be difficult to understand is made
useful by presenting and explaining it as clearly as possible.

2.5.5 Financial Reporting Framework in Tanzania

Since 2004, all business entities in Tanzania have been required to use IFRSs except for
government business entities, which have been required to use International Public Sector
Accounting Standards (IPSASs). Local government effectively started producing accrual
based IPSAS financial statements from 30 June 2008. Central government started
implementing the global rules by adopting cash basis IPSAS financial statements from the
same date and began introducing accrual IPSAS statement from 2012/2013. Tanzania has
improved its financial reporting documentation as a result of IPSAS implementation.

2.6 Relationship between Computerized Accounting System and Financial Reporting

Computerized accounting on financial reporting is linked to benefits of applying computing

system while generating financial reports.

Computerized accounting systems are credited for his or her quick processing speed and
enormous storage capacity. Using computerized accounting ensures up-to-date account
balances are available any time for management to form quick decisions (Lancouch, 2003).

Quality of monetary reports is assured with computerized accounting as compared to

manual systems. the tactic of inputting and processing data is sophisticated thus accuracy
of knowledge is improved. this suggests that financial reports will bear minimum errors.

Computerized system will foster accessibility and faster transformation of data stored in
computers, hence financial reports can easily be accessed through online system at once
and timely deciding (Kwarijuka, 1998).

The use of computer based systems in manufacturing firms will enable employees from
various function areas and branches to get timely financial reports which enable managers
to watch business operations and important finance decisions (Wailes, 1999).

22
A computerized accounting may be a delivery system of accounting information as
providing reliable accounting information to users. So records of expenditure and incomes
and assets, liabilities, revenue expenses must be documented and transferred to ledger of
firm’s financial details to be analyzed for future financial decisions.

2.7 Empirical Literature Review

CAS is capable of processing sizable amount of transactions with speed and accuracy. it's
capable of offering quick and quality reporting due to its speed and accuracy. The reporting
is flexible in CAS for it's capable of generating reports of any balance as when required and
for any duration which is within the accounting period.

Several things are thought to be impacted by Computerized Accounting System. Some

examples include income tax, organization's performance, financial control, payroll
accounting, audit risk management and financial reporting. (AdelisaAnaeli, 2017, Bahati
Alfred, 2014, NsiaYesaya, 2013, Otieno & Oima 2013 and Yaser 2013). In the present
study the effectiveness and influencing factors for CAS are investigated.

Ntah Eliot NjiBama (2016) conducted a search on the impact of CAS in financial reporting
with experts specializing in microfinance institutions in Mankon, Bamenda. His study used
a sample size consisting of 15 employees from various departments, and sampled by a
method rather than a random purpose. The survey does not collect data processed by tables,
bar chats or narrations in a kind of explanation. When assessing the benefits of CAS
results, 70% of respondents agreed that a computerized accounting system could minimize
errors and easily expose transactions to the director, while 30% said. I don't agree. As a
result of investigating the quality of financial reports prepared by companies, 87.5% of
respondents found the prepared financial reports to be reliable, and 12.5% disagreed.
Researchers found that the organization he studied was running a fully computerized
organization in financial reporting. He found that financial institutions are in a position to
manage the quality of their financial reporting with respect to timeliness, reliability, and
accuracy by CAS.

According to Moujood Shiraj (2015), in a study on the impact of using computer

accounting in financial reporting with a particular focus on SMEs and SMEs, CAS plays an
23
important role in improving the financial reporting of SMEs. His research supported a
survey conducted among small and medium-sized enterprises to elucidate the extent to
which the development and implementation of computerized accounting has progressed,
followed by an analysis of the extent to which this introduction will affect indicator
productivity improvement. Information was collected through surveys. The supported
methodology is the case study approach for which the data were collected, with
respondents from the Southeast Region, which is part of Sri Lanka. This study
demonstrated that CAS had an outstanding impact on the quality of financial reporting. The
findings revealed a strong significant positive relationship between the variables implying
that CAS had an impact on financial reporting.

Emanuel Opoku Ware (2015) in his research of “Computerized accounting an efficient

Means of Keeping Accounting Records in Ghanaian Banks” concluded that the benefits of
CAS far outweigh its associated challenges because it has impacted the financial reporting
of the banks positively. Hence there's the necessity for business, particularly rural banks to
adopt a CAS.

Musa (2006) investigated the perceived threat of CAIS (Computerized Accounting

Information Systems) in an organization in Saudi Arabia. Research shows that nearly half
of the responding Saudi Arabian organizations suffered financial losses due to internal and
external CAIS security breaches. The results are also accidental and intentional input of
incorrect data; costs such as education and software updates; accidental destruction of
knowledge by staff; introducing computer viruses into employee password sharing CAIS;
of output Suppression and Destruction; Unauthorized Document Visibility; And Directing
Printed and Distributed Information to Unqualified Persons is Recognized by Saudi
Arabian Organizations as the Most Important Security Threat for CAIS. In this study, we
strengthened IT security controls so that we could manage IT risks and protect CAIS and
IT internal controls much better, and strengthen notifications about CAIS security issues in
Saudi Arabian organizations. Here are some suggestions and suggestions.

Lauren (2012) noted that the subsequent are the issues organizations face in CAS; Updating
a standard accounting department to use a computerized system can represent a big cost,
especially for a bigger business.

24
Mwasalwiba (2006) noted that there are problems encountered with auditing process in
computerized accounting . These problems include; the challenge of paperless audit trail,
changing technology, control and security concerns, process oriented-not results oriented,
complexity of the practice, professional integration, sources of errors and inconsistency and
private computer environment.

Powell and Xiao (2006) surveyed major UK companies to work out the extent of ICT use
in accounting. Among the indications used include the extent of computerization, sorts of
CAS in use, sorts of CAS applied, workstation to staff ratio, and years of CAS use. Results
showed that 94% of the businesses have fully or largely computerized their accounting.

The results of Powell and Xiao (2006) show that large enterprises are more computerized
than small and medium enterprises. The results show that the factor that determines the
sophistication of CAS (Thong, 2009) is the crystal of Hunt on and Flowers (2007), which
has a significantly negative correlation with the size of the company, so other claims of the
size of the company. We also confirmed the early results of the study. The scope of use of
CAS in accounting. They suggested that the difference could have lowered the capital and
risk barriers, thanks to the dramatic reduction in CAS costs that allows businesses of all
sizes to enjoy the development of the latest CAS. Another possible explanation is that
midsize businesses have been extended to SMEs, but managers have limited capacity such
as time and education to understand the benefits of using an integrated accounting system.
Is possible. Powell and Xiao (2006) found that nearly 80% of companies were almost or
completely satisfied with their CAS-based accounting system. Nearly 90% claim that the
purpose of a CAS application is fully or nearly fulfilled. As a result, it turns out that most
companies have computerized their accounting systems. Recruitment at CAS depends on
management's perception of CAS and its advantages as it depends on the type of business.
Also, since the nature of the business is not very complex, there is a growing tendency to
seek commercialized accounting packages that are cheaper than those defined within or
outside public institutions (Gray, 2011). A survey by Chan and Kelvin (2010) found that
52% of public institutions in Malaysia used off-the-shelf accounting packages. 19%
developed the package in-house. Also, only 9% had changed externally imported packages.
Another finding is that they tend to seek outside experts to assist them in choosing an

25
acceptable accounting package. This has the potential to flow into their lack of knowledge
about information systems.

Authors suggest that successful implementation of computer information systems in public

institutions requires combining both computing system expertise and business knowledge.
In general, public institutions are familiar with business operations, but lack knowledge of
data systems. Therefore, most public institutions always turn to outside experts for help.

Nsia Yesaya Munisi (2013) investigated the impact of computerized accounting in the
financial management of Musoma City Council. The research team gathered data through
surveys and interviews. After thorough data analysis, it was concluded that computerized
accounting impresses financial management. ScoviaMurungi (2015) focuses on the impact
of computerized accounting on the financial reporting of the Ministry of Government of
Rwanda (MINALOC) and whether the electronicization of CAS accounting, which
employs thrift, has the effect on the generation of financial reports, and thus whether the
electronicization of accounting has the effect of MINALOC's How much are you
contributing to financial reporting? Survey results 98% of respondents admit that local
accounting uses both computerized cash-based and accrual-based systems 38% of
respondents agree that computerized accounting improves accountability and 31% of
respondents said the system provides financial statements It claims to be on time.

2.8 Research Gap

Issues concerning the influence of Computerized Accounting Information System have
been researched worldwide. It is important to examine whether and to what extent CAIS
has been effective in enhancing financial reporting in public sector.

2.9 Conceptual Framework

The conceptual framework is the theoretical structure of assumptions, principles and rules
that hold together the ideas of the study (Kumar, 2002). A conceptual framework explains
the relationship between seven (7) independent variables, and one (1) dependent Variable
(Mugenda and Mugenda, 2003). In this study the independent variables show the

26
determinants of an effective CAIS, meanwhile Financial Reports stands as dependent
variable are illustrated below.

Figure 2.1: Conceptual Framework

INDEPENDENT VARIABLES DEPENDENT VARIABLE

PERCEIVED USEFULNESS

INFRASTRUCTURE

HUMAN RESOURCE CAPABILITY

EASE OF USE

FINANCIAL REPORTS
INTERNAL CONTROL

SECURITY

FLEXIBILITY

Source: Author (2021)

27
 CHAPTER THREE
RESEARCH METHODOLOGY

3.0 Introduction
Kothari (2004) defined research methodology as how to systematically solve the research
problem. This chapter will present the research design, area of the study, sampling
procedures, data collection methods, secondary data collection methods, primary data
collection methods and data analysis.

3.1 Research Design

Research design refers to an idea, structure and strategy of investigation conceived so as to

obtain answers to research questions (Kumar, 2002). Research design is vital because it
tells the investigator what to watch within the study, whom to watch , the way to observe,
why to watch , the way to record observations, the way to analyze the observation, and
what reference are often drawn (Cauvery, 2010). There are four sorts of research design,
namely: longitudinal design, survey design, case study design and therefore the
experimental design (Kothari, 2004). This study employed a case study design.

A case study is an empirical inquiry that investigates contemporary phenomena with its real
world context, especially when the boundaries between the phenomenon and context can't
be drawn clearly or unambiguously (Yin, 2003). the choice of case study design was thanks
to the subsequent considerations: First, the planning allowed the investigation of the
effectiveness of computerized accounting to be conducted at TEMDO to be made at its
operational context where because it enabled original data about the performance of CAIS
to be captured and wont to answer the research questions. This was made possible by
observing and collecting views of members at TEMDO. Secondly, case study enabled the
researcher to capture the TEMDO operations at a really detailed point.

3.2 Area of Study

This study is conducted at Tanzania Engineering and Manufacturing Design Organization

(TEMDO). TEMDO is a Public sector organization among manufacturing organizations
28
that style, adapt and develop machinery and equipment and promote their commercial
manufacture and use and it uses Computerized Accounting data system in processing its
financial information and to get its financial reports.

3.3 Study Population

Kothari (2006), the term population connotes a whole group of people, events or objects
that have a standard observable characteristic. It refers to all or any elements that meet
certain criteria for inclusion during a given universe. Targeted population denotes where
actual list of sampling units from which the sample is chosen (Creswell, 2002). The
populations of this study comprised of employees from accounting department,
procurement and provide department, information and technology department and director
general. The questionnaires were mainly distributed to the workers in several departments
of Tanzania Engineering and Manufacturing Design Organization. Targeted population
should be familiar or have experience about the matter of the study, so on provide the
accurate and related data or information counting on research topic, so on give room to the
researcher to collects data.

3.4 Sampling Techniques

Kothari (2006) made clear that sampling is that the collection of some parts that present all
respondents supported judgment or suggestion as a whole is formed. In other words it's a
process of deriving sample from the population. There are differing types of sampling
except for the case of this research, a purposive and sampling method is used. The
researcher purposely selected 40 respondents from a targeted population of 68 people. and
therefore the sample of the study was obtained from the Slovin’s formula of calculating
sample size which states:

n=N/1+N (e ^2)

Where: N =Targeted Population, e=margin of error and n=sample size

The confidence level chosen was 90% which gives the margin of error (e) to be 10% and
total targeted population (N) of 68.

29
3.4.1 Purposive Sampling

Purposive sampling allows researcher to select those participants who will provide the
richest information (John, 2006). In this, researcher used 40 respondents from purposive
sampling because they have enough information related to the research.

3.5 Sample size

Sample size in research refers to a group of people or things that are taken from a larger
whole or group and studied, tested, or questioned to get information that will be helpful in
research. It is the representative of the population. The sample for the study is made up of
40 TEMDO employees dealing with accounts in the organization. The method was suitable
since it was flexible and adequately met the objectives of study.

3.6 Data Collection Methods

This study has used observation and questionnaire as primary methods of data collection
and documentary reviews as secondary data collection method.

3.6.1 Primary Data Sources

Primary sources of knowledge refer to the first hand data or evidence given out by
participants or observers at the time of the event (Kelleher, 1999). Primary sources provide
first hand testimony or directly observed evidence concerning the subject under
investigation. The sources of primary data during this study were questionnaire and
observation.

3.6.1.1 Observation

The observation method is that the most ordinarily used method, especially in studies
concerning behavioral sciences. During a way we all observe things around us, but this
type of observation isn't a scientific observation (Tayie, 2005). Under the observation
method, the knowledge is sought by way of investigator’s own direct observation without
asking from the respondent. The researcher has used participatory observation because the

30
researcher was participating in daily activities of the organization during which it had been
possible to ascertain how Computerized accounting worked and it gave in-depth and rich
understanding of the setting of CAS.

3.6.1.2 Questionnaire

Questionnaire may be a document containing questions pre-prepared and designed to solicit

information appropriate from the massive number of respondents (Babbie, 2004). This
method was the most instruments for data collection from respondents; structured
questionnaires were distributed by hand to the staffs within the departments selected in
order that they reach the responsible individual and therefore attain the response from the
chosen sample.

3.6.2 Secondary Sources of data

Secondary data are the info that are collected and recorded by people (Oliver, 1977).This
method is used purposively for information about the matter at hand, for collecting
secondary information from legal document like articles, books, magazines, research
reports, dissertations and internet sources obtained in various locations like libraries and
position . This method has often been found useful to match data which might be obtained
through other method, however it provides in-depth understanding of the matter being
investigated by identifying what has been done and therefore the research gap associated
with the study.

3.7 Data Analysis

Data obtained from observation and documentary review helped the researcher in
understanding the questions that were included within the questionnaires and therefore the
results were briefly described.

Data obtained from closed ended questions were analyzed using SPSS and therefore the
before the output was presented in sort of summarized tables and the open ended questions
got brief description.

31
 CHAPTER FOUR
PRESENTATION AND DISCUSSION OF THE FINDINGS

4.0 Introduction
This chapter presents and discusses the findings of this study whose objective was to assess
the effectiveness of Computerized Accounting Information System in enhancing Financial
Reporting in public sector.

4.1 Demographic characteristics of the respondents

The demographic characteristics of the respondents surveyed were their gender, age,
marital status, educational background, background, and work force. These characteristics
are essential to present the nature of the respondent's response and the possible reasons for
the response provided.
4.1.1 Sex of respondents

Table 4.1: sex of respondents

Sex Frequency Percent Valid Percent Cumulative
Percent
male 27 67.5 67.5 67.5
Valid female 13 32.5 32.5 100.0
Total 40 100.0 100.0

Source: Field data

The above table shows a total of 27respondents are male who form a percentage of 67.5%
of all respondents while there are 13 females who form a percentage of 32.5%. The
researcher has used gender of the respondents’ as one of the demographic characteristics so
as to analyze how usage of CAIS affects different roles and status of females and males
within the organization and how will the anticipated results of the effectiveness of CAIS
affect females and males.

32
4.1.2 Age Group

Table 4.2: Age group of respondents

Age group Frequency Percent Valid Percent Cumulative
Percent
26-35 14 35 35 35
36-45 17 42.5 42.5 77.5
Valid 46-55 7 17.5 17.5 95
above 55 2 5 5 100.0
Total 40 100.0 100.0

Source: Field data

The above table shows age group of the respondent. 35% consist of age group between 26
and35, another 42.5% consist of age group between 36 and 45, 17.5% consist of age group
between 46 and 55 years while 5% consist of age group above 55. The researcher has used
age group as one of its characteristics so as assess ability of the respondents to use the
system efficiently relative to their experience in work. The table shows that many
respondents are in the age group of 26-35 and 36-45 years.

4.1.3 Marital Status

Table 4.3: Marital status of respondents

Marital status Frequency Percent Valid Percent Cumulative
Percent
single 17 42.5 42.5 42.5
Valid married 23 57.5 57.5 100.0
Total 40 100.0 100.0

Source: Field data

The above table shows that, 42.5% were single and 57.5% were married. The researcher
has assessed marital status so as to see if usage of information systems has any effect on the
responsibilities of marital statuses.

33
4.1.4Education Level

Table 4.4: Education level

Education level Frequency Percent Valid Percent Cumulative
Percent
bachelor degree 37 92.5 92.5 92.5
Valid masters and above 3 7.5 7.5 100.0
Total 40 100.0 100.0

Source: Field data

The above table shows education level of the respondents whereby, 92.5% of the
respondents have attained bachelor degree and 7.5% of the respondents have attained
masters and above. This implies that the respondents have the basic literacy skills to
understand, analyze and respond to the main themes behind the asked questions.

4.1.5 Work Experience

Table 4.5: Work experience of the respondents

Work experience range Frequency Percent Valid Percent Cumulative

Percent
3-5 years 17 42.5 42.5 42.5
6-10 years 13 32.5 32.5 75
Valid
10-14 years 10 25 25 100.0
Total 40 100.0 100.0

Source: Field data

The above table shows the work experience of the respondents whereby, 42.5% have a
work experience of 3-5 years, 32.5% have a work experience of 6-10 years and 25% have a
work experience of 10-14 years. The researcher has assessed the level of work experience
that the respondents have gained while working with the CAIS as it’s an important factor in
assessing the effectiveness of CAIS.

34
4.1.6 Work Group

Table 4.6: Work group

Work group Frequency Percent Valid Percent Cumulative
Percent
top management body 5 12.5 12.5 12.5
Accounts 10 25 25 37.5
procurement and supply 12 30 30 67.5
Valid
internal audit 4 10.5 10.5 78
information and technology 9 22 22 100.0
Total 40 100.0 100.0

Source: Field data

The table presented shows work groups of the respondents in which 12.5% consist of top
management body, 25% consist of accounts department, 30% consist of procurement and
supply department, 10.5% consist of department of internal audit and 22% consist of IT
department. Top management body has been included because it’s the body that has been
given the power and authority to decide on important matters affecting the organization
economic activities, accountants are the main operators of the accounting information
system in preparing financial reports, procurement and supply unit is concerned with
procuring of all the needs of the company at reasonable costs, internal audit is concerned
with improving the organization operations and information and technology is concerned
with implementing and supporting information systems and application that cause the
functions of the organization to run smoothly.

4.2 Result and discussion of the findings

This section discusses the data collected and explains the findings obtained from the case
study in an endeavor to address the research objectives presented in the introductory
chapter.

35
4.2.1Analysis of Effectiveness of CAIS in enhancing Financial Reporting
The collected data was analyzed in SPSS package, and each question relating to the
measured variable has been summarized in terms of percentage of those who strongly
agreed, agreed, neutral, disagree and strongly disagree

4.2.1.1 Perceived Usefulness

Table 4.7: Perceived usefulness

Perceived usefulness Strongly agree (%) Agree (%)
CAIS generates relevant information that is helpful for financial 66.7 33.3
decision making process
CAIS generates information that accurately reflect company’s 73.3 26.7
resources, obligatory claims and transactions
CAIS improves reliability of financial reports of the 53.3 46.7
organization
CAIS eliminates data entry redundancy 53.3% 46.7%
Source: Field data

Usage of CAIS has a positive effect in enhancing financial reporting in terms of its
perceived usefulness. Many respondents have strongly agreed on the aspects of perceived
usefulness of CAIS while few have just agreed. The results still imply that CAIS is
effective and the respondents have knowledge on the critical factors that ensures quality
financial information. That is, respondents have agreed that CAIS; generates relevant
information that is helpful for decision making, it generates information that accurately
reflects changes in economic resources, it improves reliability of the financial reports of the
organization, it enhances higher quality of work performed and eliminates data entering
redundancy.

36
.4.2.1.2. Infrastructure

Table 4.8: Infrastructure

Infrastructure Strongly agree Agree (%) Neutral (%)
(%)
There is presence of equipments and materials required 6.7 60 33.3
to use CAIS in the organization
There is stable and fast internet connection access 46.7 53.3
CAIS allows editing of data before being posted and 60 40
incase an error is revealed after posting a separate entry
has to be made
CAIS allows exporting and importing of electronic files 60 40
of transactions and other data in different formats.
Source: Field Data

Infrastructure of CAIS is very important variable to consider in assessing the effectiveness

of the system because it is the infrastructure that allows interaction of preparers of the
reports and the system. A good and effective system will be supported by enough and all
the necessary equipment and materials both hardware and software and it have to be
modern. The accounting application cannot modify the data at the time of entry and after it
has been issued that it is necessary to edit a wide range of knowledge and provide
modification capabilities before it is posted to the trading account. Honest systems also
need to export electronic files of transactions and other data. Although they did not agree
with the question of whether they had the equipment and materials needed to use CAIS
within their organization, some respondents agreed with the question aspect of the CAIS
infrastructure. However, just in case of software many organizations buy and use already
made accounting software that are made without considering organizational needs that are
in several economy settings.

37
4.2.1.3 Human Resource Capacity

Table 4 .9: Human Resource Capacity

HR capacity Strongly agree(% ) Agree(% )
CAIS offers the opportunity to improve the skills of accounting 33.3 66.7
practices and procedures.
CAIS encourages workers to do their daily activities 80 20
CAIS helps manage the proper accounting operations of 73 .3 26.7
in accordance with the rules and regulations of the organization.
In order for CAIS to perform effectively a qualified human staff 66.7 33.3
is important
Source: Field data

The results of the findings show that the human resource aspects have a positive effect on
the usage of CAIS to reinforce financial reporting. Accounting information system also
provides a chance for its users to extend accounting skills and practices. Although the
respondents haven't strongly agreed on the question of if CAIS provides a chance to extend
their accounting skills and procedures, they have strongly agreed on other questions which
asked if CAIS encourages workers to perform daily activities, if CAIS helps in managing
adequately accounting, if CAIS requires a professional human staff.

4.2.1.4 Ease of Use

Table4.10: Ease of Use
Ease of Use Strongly agree(% ) Agree (%) Neutral (%)
Learning how to use CAIS is easy 26.7 46.7 26.7
CAIS provides financial information needed in 73.3 26.7
easy and understandable way
Source: Field data

Two questions on the degree of ease of use of CAIS were asked. When respondents were
asked if using CAIS was ease they came up with a number of responses. 26.7% strongly
agreed that CAIS is easy to learn, while 46.7% just agreed and 26.7% were just neutral. A
good Accounting Information System must come with software whose interface is easy to
interact with and perform essential activities. Providing training to the users of the
Computerized Information System regularly is very important so as to make users used to

38
the system and the new features that are added regularly. 73.3% of the respondents strongly
agreed that CAIS provides financial information needed in easy and understandable way,
while 26.7 % just agreed. The organization should invest in growing knowledge on the
usage of CAIS so as to make it easy to use and reduce risk of human errors.

4.2.1.5 Internal Control System

Table 4.11: Internal Control System

Internal Control System Strongly agree (%) Agree (%) Neutral (%)
CAIS is effective in reinforcing the control system 4o 60
and accountability
CAIS highly contributes to the internal control 46.7 53.3
system
CAIS facilitates accounting duties and follow up 73.3 26.7

Source: Field data

When implementing CAIS in a corporation , management has got to concentrate to the

planning of control because control system is usually center of the organization’s CAIS.
Ponemon and Nagoda (1990) revealed that control helps the administrator to watch and
measure the effectiveness of their accounting operations on performance. this means that
the interior control in situ , that is, the set rules, policies, process and procedures that the
organization has implemented to supply reasonable assurance in terms of reliability of
monetary reports will considerably depend upon the Accounting data system used. that's to
mention , where there's an efficient CAIS there's an honest control system. The respondents
have moderately agreed that CAIS is effective in strengthening their control system and
accountability (40% have strongly agreed while 60%) have just agreed. On the question of
CAIS contributing to control system 46.7% have just agreed and 53.3% were neutral.
73.3% strongly agreed that CAIS facilitates accounting duties and follow up.

39
4.2.1.6 Flexibility

Table 4.12: Flexibility

Flexibility Strongly agree (%) Agree(% )
CAIS is flexible to the environmental changes to manage 20 80
transactions of the firm
CAIS enables generation of reports with different file formats 80 20
Source: Field data

Technological advancements, changes in economic conditions, fluctuations in government

regulations, organizational growth and increased competitions require flexibility of an
Accounting Information System so as to not affect the economic resources of organization.
This suggests that an effective CAIS is the one that is flexible with the changing
environment of the organization’s operational activities. The results show that 20% and
80% of respondents have strongly agreed and agreed respectively. Few respondents have
strongly agreed because CAIS is not flexible in some aspect. For example, there are
seasons that organization trade activities increase leading to respective departments
increase in their activities. In case of accounting department when activities increase, usage
of the CAIS increase also but the weakness is that the processing ability of the system will
not increase relative to increase in accounting activities. 80% and 20% of the respondents
have strongly agreed while others just agreed on the question of if CAIS enables generation
of reports with different file formats. This feature positively affects the CAIS because the
information generated in CAIS can be generated in other file formats such as, excel without
affecting its accuracy and completeness and therefore it is effective in enhancing financial
reporting by producing various options according to the needs.

40
4.2.1.7 Security

Table 4.13: Security

Security Strongly agree Agree Neutral(% ) Strongly Disagree
(%) (%) (%)
CAIS has sufficient security measures to stop 60 40
unauthorized modification of the accounting
transactions
Presence of an effective data security control 66.7 26.7 6.7
(audit log) in the organization
Source: Field data

60% and 40% of the respondents have strongly agreed and just agreed respectively on the
question of if CAIS within the organization has adequate measures to stop unauthorized
modification of the accounting transactions. While 66.7%, 26.7% and 6.7% have agreed,
were neutral and strongly disagreed respectively on the question of if there's effective
security data control within the organization. Unauthorized access may result into fraud
problems to loss of irreplaceable data. The results are according to results found by Musa
(2006) were his study revealed that accidental entry of bad data, accidental destruction of
data, introduction of computer viruses to the system, sharing of passwords and misdirecting
prints were the common professed threats to the safety of CAIS. Some best practices for
operational security data control include restricting network access, segregating duties,
automating tasks and establish incident response and disaster recovery plans. it's very
necessary for the organization to understand the frequency and source of potential events
because the system deals with sensitive data that might cause great financial and non-
financial losses.

4.3. Challenges faced by the organization when using CAIS in financial reporting
The following were common responses from respondents regarding the challenges of using
CAIS in financial reporting on the part of open ended questions.

41
4.3.1 Unstable internet connection

The organization faces a problem of network connection dropping from time to time
affecting the workers’ productivity. This in turn cause delay in different activities which
lead to delay of financial information to its users since CAIS depends greatly on the
internet.

4.3.2 Data corruption

The organization also faces the problem of data corruption through viruses that may come
in through the internet or the use of external input devices. Data corruption causes loss of
data and affects the whole system of flow of information. This in turn affects the timeliness
and reliability of financial information.

4.3.3 Cost of installation, updates and Training

The organization is faced with the challenge of high costs to install, update and train the
staff on CAIS. Also high training costs are experienced to understand the use of hardware
and software on continuous basis. High cost makes the decision makers reluctant to procure
a good system and in this way it affects its activities.

4.3.4 Electric power blackout

The usage of CAIS is affected greatly by power blackout causing low employee
productivity hence delay in organization activities. This will eventually affect the time
required to complete certain tasks and cause the financial information to delay to the
responsible parties. This problem affects timeliness of the financial reports which is a very
important quality in financial reporting.

4.3.5 Incomplete usage and integration of CAIS

The organization is faced with ineffective use of some core and noncore modules of CAIS.
For example the organization does not use purchase order, debt collection, electronic
payment processing, purchase requisition modules and departmental accounting. Lack of
complete and integrated CAIS causes the organization to fail to reap all the benefits
available and make it to seem expensive because of limited usage.

42
 CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.0 Introduction
This chapter presents summary, conclusion, recommendation of this study.

5.1 Summary
The study has assessed the effectiveness of Computerized Accounting Information System
in enhancing Public Sector Financial Reporting the case study of Tanzania Engineering and
Manufacturing Design Organization. The specific objective of this study include; to
examine whether and to what extent has CAIS been effective in enhancing financial
reporting, to identify the challenges faced by the organization when using CAIS in
financial reporting and to recommend areas of improvement in the usage of CAIS in
financial reporting. The independent variables were perceived usefulness, infrastructure,
human resource capacity, ease of use, internal control, flexibility and security of CAIS and
the dependent variable was financial reports. The installed computerized accounting
information system in TEMDO was Quick Books. The research succeded to get relevant
data through observation and 15 distributed questionnaire to staffs that were purposeful
selected. The data that was collected from questionnaires was analyzed by using Statistical
Package for Social Sciences (SPSS).

The results revealed that, CAIS is very effective in some aspects but moderate in some
other aspects in enhancing financial reporting. Some aspects of the variables were strongly
agreed upon while others were just agreed, were neutral and even disagreed. Most of the
respondents strongly agreed or at least agreed that CAIS is effective in enhancing financial
reporting of the organization although some variables such as infrastructure, ease of use,
internal control and security had a variety of responses than those of strongly agree and
agree.

5.2 Conclusion

Although CAIS has proved to be effective in most of its aspects, there are some aspects that
need to be improved so that CAIS can be fully utilized to provide benefits in financial
reporting. There are no adequate and modern infrastructures to support usage of CAIS in
43
generating financial reports. Also the organization faces the problem of unstable internet
connection, data corruption, electric power blackout and lack of complete and integrated
CAIS. In human resource capacity aspect, CAIS provision of opportunity to increase skills
for accounting practices and procedures is moderate. This shows that it is difficult for a
person who is not aware of accounting procedures and practices to develop accounting
knowledge when using CAIS.

5.3 Recommendations
In accordance to the results, the following are recommendations of the researcher to reduce
the challenges faced by the organization in using CAIS in enhancing financial reports.

Procuring and installation of enough and modern infrastructures that supports usage of
CAIS. This involves installation of computers which have fast processors and that possess
large storage capacity, sufficient printing and scanning devices along with other peripherals
such as mouse, keyboards and external data storage devices.

Training on the usage of CAIS and its underlying principles should be taught to the staffs
and other users of financial statements so as to equip them with the necessary knowledge to
produce and interpret quality and necessary financial information hence and relevant
decisions.

The organization should have an alternative source of power to ensure continuity of daily
activities by having a standby generator since power blackouts cause failure for continuous
activities and sometimes loss of data.

There should also be regular backups and updates so as to protect important data against
damages. Antivirus programs should be updated often so as to ensure data is all safe.

5.4 Recommendations for Further Research

Further research should be conducted on effectiveness of CAIS in public sector
organizations with inclusion of many of several accounting packages so as to get the
general picture countrywide. Also, there should be a study to assess whether the
organizations that are using CAIS are effectively using it to get its full benefits.

44
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 APPENDIX
RESEARCH QUESTIONNAIRE

My name is Sinai Taniel Gomah, a student of Mzumbe University (MU) pursuing Bachelor
Degree in Accountancy and Finance in Business Sector. I am conducting a research on the
Effectiveness of Computerized Accounting Information System(CAIS) in enhancing
Financial Reporting in Public Sector my case study being Tanzania Engineering and
Manufacturing Design Organization (TEMDO).

I kindly request your cooperation in responding the questions in this questionnaire as a way
of helping me in the process of data collection for my research.

I assure you that the information that will be obtained from you will be treated with high
degree of confidentiality in the whole process of writing my research report.

Thank You in advance.

Yours sincerely,

Sinai T. Gomah

Part 1: Demographic Data

For this part please tick on the blank space which is appropriate for you.

1. Gender

A) Male B) Female

2. Age

A) 18-25 B) 26-35 C) 36-45 D) 46-55 E) Above 55

3. Marital Status

A) Single B) Married C) Divorced D) Widow/widower

4. Education Level

51
A) Diploma B) Bachelor Degree C) Masters and above
D) Others (Please specify) ……………………………………………………………….

5. Work experience in this organization

A) 0-2 B) 3-5 C) 6-10 D) 10-14 E) 15 and above

6. Work Group

A) Accounts B) Information Technology C) Procurement and Supply D)

Internal Audit E) Top Management Body

Part 2: Assessing the Effectiveness of Computerized Accounting Information System

in enhancing Financial Reporting.

Section A : What are the major benefits of using Computerized Accounting Information
System?

Please evaluate the degree of your agreement with the following criterions of Effectiveness
for Computerized Accounting Information System by ticking in the space provided in the
table.

Keys: 1= Strongly Agree 2= Agree 3= Normal 4= Disagree. 5= Strongly Disagree,

1 Perceived Usefulness 1 2 3 4 5

1.1 CAIS generates relevant information that is helpful for

financial decision making process

1.2 CAIS generates information that accurately reflect company's

resources, obligatory claims and transactions

1.3 CAIS allows processing of large amount of Financial

Information

1.4 CAIS improves reliability of Financial reports of the

organization

52
 1.5 CAIS generates information that can be used to compare to
different entities

2 Infrastructure of CAIS 1 2 3 4 5

2.1 CAIS allows editing of data before it is posted

2.2 In case an error is discovered after transaction is posted, separate

entry has to be made.

2.3 CAIS allows exporting and importing electronic files of

transactions and other data

3 Human Resource Capacity 1 2 3 4 5

3.1 CAIS provides opportunity to increase skills for accounting

practices and procedures

3.2 CAIS encourage workers to perform daily activities

4 Ease of Use 1 2 3 4 5

4.1 Learning to use CAIS is easy for me

4.2 CAIS provides the financial and accounting information needed in

easy and understandable way

5 Internal Control 1 2 3 4 5

5.1 I believe that CAIS is effective in strengthening the control

53
 system and accountability in TEMDO

5.2 CAIS in TEMDO highly contribute to the internal control system

5.3 CAIS facilitates accounting duties and follow up

6 Flexibility 1 2 3 4 5

6.1 CAIS supports flexibility to the changing environment to manage

transactions of the organization

6.2 CAIS enables generation of reports with different file formats

7 Security 1 2 3 4 5

7.1 CAIS has adequate security measure to prevent unauthorized

modification of the accounting transactions.

7.2 There is a password protection for general system protection

7.3 There is a password restriction for specific system functions

7.4 There is an effective Data security control in the organization

(audit log).

Section B: What are the challenges associated with using CAIS in performing daily
activities in TEMDO?

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Section C: What are your recommendations for the challenges you mentioned above

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