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Project Topic:

AN EMPIRICAL ANALYSIS OF THE VALUE OF ACCOUNTING INFORMATION SYSTEM IN AN ORGANIZATION (A CASE STUDY OF NIGERIAN RAILWAY, ENUGU)

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 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 73 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   5,364 people found this useful

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ACCOUNTING UNDERGRADUATE PROJECT TOPICS, RESEARCH WORKS AND MATERIALS

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CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND TO THE STUDY

Accounting information system has become an important component of successful business and organizations. Borthick and Clara, (1990) supporting the above,stated that accounting information system is vital to all organizations either profitor non-profit oriented. They further opined that there is need for everyorganization to maintain accounting information system. In the opinion of Wathana, (2004), accounting information system produces more information to ease operations suchas planning and control information and performance evaluation.An understanding of Accounting Information System will therefore foster a better understanding of how businesses and organizations are assisted to operatemore efficiently and effectively. Accounting information system has to do with any combination of information technology and peoples’ activities that support accounting operations, management and decision making, though in a narrow sense. In a broader sense however, the term accounting information system is used to refer tothe interaction between people, processes, data and technology that are used for accounting duties.It is equallyin this wise that O’Brien, (2003) asserted that, the term do notonly refer to information and communication technology that an organization usesbut also to the way in which people interact with this technology in support of  business activities and processes. Furthermore, accounting information system may be understood from the three words that constitute it (Accounting, Information and System). Wilkinson, (1993) identified three components that relate toaccounting as; Information System, Language of Business and Source of FinancialInformation. Secondly, O’Brien identified information as a valuable dataprocessing that provides a basis for making decisions, taking actions and fulfillinglegal obligations. Finally, he stressed that a system is an integrated framework within an entity where the framework is focused on a set objectives.Combining the three, Accounting Information System indicates an integratedframework within an entity (such as business entity) that employs physical resources (material, supplies, personnel, equipment, funds) to transformeconomic data into financial information for conducting the firms’ operations andactivities, and providing information concerning the entity to a variety of interestedusers (O’Brien, 1993). Thomas andKleiner, (1995) concluded that the combinationor interaction between human, technology and techniques knowledge effectively.This research seeks to conduct an empirical analysis of accountinginformation system in organizations and examine its values in organizationalactivities and processes.

1.2   STATEMENT OF THE PROBLEM

Existing literature have shown that accounting information system whensuccessfully implemented brings about better decision making by managers, moreeffective internal control systems, enhances the quality of financial reports andfacilitates financial transaction processes (Wathana, 2010). However the studies have not shown whether successful implementation of accountinginformation system can improve performance measures thereby creating a researchgap.Moreover the studies have shown a situation or situations rather in SpanishEnterprises, Chinese Enterprises, Indian Firms etc where economies are welldeveloped. The researchers therefore seeks to bridge the gap so created in the fieldof accounting information system and also determine whether the values of accounting information system identified in earlier studies are applicable to Nigerian situation, a less developed economy.

1.3   OBJECTIVES OF THE STUDY

The following are the objectives of this study:

  1. To examine the effect of accounting information system on financial transaction process.
  2. To examine the effect of accounting information system on the quality of financial reports.
  3. To determine whether accounting information system leads to effective internal control systems.

1.4   RESEARCH QUESTIONS

  1. What is the effect of accounting information system on financial transaction process?
  2. What is the effect of accounting information system on the quality of financial reports?
  3. Does accounting information system leads to effective internal control systems?

1.5   HYPOTHESIS

HO: Accounting Information System does not facilitate financial transaction process

HA: Accounting Information System does facilitate financial transaction process

1.6   SIGNIFICANCE OF THE STUDY

This study shall be of immense importance to users of accountinginformation system such as financial analysis, Financial Accountants, managementAccountants, Finance Managers, the Finance General Managers, Chief OperatingOfficer, Managing Director and Board of Directors within an organization and theGovernment Agency, External Auditors and Creditors from outside theorganization. This will enable them have effective combinationof people, Hardware, software, communication network and data resources thatcollects, transform and disseminate information in an organization hence theemphasis on computer based accounting information system.More so, the study shall be of great importance to students of Accountingand Management as well as other researchers who may be acquainted with the basis of Accounting Information System, its operations and its support for businessactivities and processes and hence a guide for further investigations.

1.7   SCOPE/LIMITATIONS OF THE STUDY

This research work is however limited to accounting information system(AIS) as a specialized area in business and non-business applications. Emphasis ismore placed on the empirical evidence that exist in the field.

 

REFERENCES

Borthick, C.J. andClara, K.D. (1990): “Exploration for the relationship between Innovation, ITand Performance”,Journal of Intellectual Capital, vol. 6, n. 2: 237-252.

Wathana, M. (2004): “Firm performance and AIS alignment in MalaysianSME ́s”,International Journal of Accounting Information Systems, vol. 6, n.4: 241-259.

O’Brien,H. (2003):“Impact of the length of relationships upon the use of ResearchInstitutes by SMEs”,Research Policy, vol. 32, n. 5: 771-788.

Wilkinson, A.(1993):“Representing change: a system model of organizational inertiaand capabilities as dynamic accumulation processes”,Simulation Modelling:Practice and theory, vol. 10, n.5-7: 271-296.

Kleiner, L.R.(1999):“Information technology and firm performance: Linking withenvironmental,strategic and managerial contexts”,Information and Management, vol.35, n. 1: 43-51.

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