The impact of decentralised information systems on the quality of financial reporting: case of Size (pvt) ltd.

Abstract

The thrust of the research was to evaluate the impact of Decentralised Information System on the quality of Financial Reporting, case of Size Investments. The time frame of the research was 2011 to 2014. Objectives of the study were put in place to assess how the manual accounting system of accounting reporting, to evaluate the relevance of integrating Information System at the SBUs and Accounts Department and its impact on quality of financial reporting and to establish the relationship between accounting information and quality of financial reporting. Literature reviewed the effects of manual accounting system on the efficiency of accounting reporting. Various authors contrasted and criticised while others agreed that computerized accounting systems were a necessity in establishing quality of financial reporting. It also brought to light that there is a strong relationship between accounting information system and the quality of financial reporting, thus the two are inseparable. Research methodology entailed the research design that was used in the research and this was descriptive design. It used both qualitative and quantitative approaches to gather data. The sample of 26 was extracted from a target population of 45 people. Simple random sampling was selected to pick the respondents for the study. The researcher used questionnaires and interviews to gather data from the respondents. Data was analyzed and presented in tables, pie charts, bar graphs and in narrative form. The major research findings were that non integration of the centralized SBUs has a direct influence on the quality of financial reporting; there is a strong relationship between accounting information system and quality of financial reporting. The quality of accounting information systems, organizational commitment, competiveness and changing environment contribute to the integration of information systems. The researcher recommended that information systems should be integrated to enable efficiency and quality of financial reporting.