The relationship between computerized accounting system and the financial report quality in Tanzania: the case of local government authorities

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Date
2015
Journal Title
Journal ISSN
Volume Title
Publisher
University of Dar es Salaam
Abstract
The rapid growth of information technologies made manual accounting systems inadequate. LGA’s are linked with ensuring the welfare of citizens and hence it is expected that stakeholders should be informed through quality financial reports. Few studies have been conducted on the effects of computerized accounting systems on the quality of financial reports. The thirst of this study was therefore to analyse the relationship between computerized accounting system and the financial report quality to LGAs Tanzania. Data was collected through reviewing financial reports of 102 LGAs as well as other relevant documents such as external auditors’ reports (CAG repots). Data analysis was conducted through SPSS, Non-parametric method, specifically Mann-Whitney. From the findings of the study, it was revealed that computerization has a positive effect on the measures of financial reports quality which includes understandability, relevance and reliability. It has been concluded that computerized accounting system should operate fully in all Organization, particularly in Accounting Department to produce more understandable, relevant and reliable financial reports. It has been recommended that LGAs should run the computerized accounting systems as this ensures quality of financial reports. LGAs should also select packages that are user friendly in order to ensure that quality of financial reports is attained. It has further been recommended to set aside budgets for research and development specifically for its computerized projects so as to ensure that not only the system can operate to the expectation of management but also quality is attained.
Description
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark ( THS EAF HF 5679T34M83)
Keywords
Financial statement, Accounting, Data processing, Local government authorities, Tanzania
Citation
Mugasha, E (2015) The relationship between computerized accounting system and the financial report quality in Tanzania: the case of local government authorities, Master dissertation, University of Dar es Salaam