The effect of computerized accounting systems on the quality of financial reports of non governmental organizations in Nairobi county, Kenya
Abstract
The recent development of information technology has had a dramatic influence on
accounting information system; computers become smaller, faster, easier to use and
less expensive leading to the computerization of accounting system. This study aimed
at investigating the effects of computerized accounting systems on financial reports of
Non-Governmental Organizations (NGOs) in Nairobi County. The main instrument of
data collection was the questionnaires. Quantitative data was analyzed using both
descriptive and inferential analysis. Data collected through the open ended questions
and analysis of documents was analyzed qualitatively through content analysis. The
sample for the study consisted of 100 NGOs operating in Nairobi County; selected
through non-proportional quota sampling.The variable factored in the multivariate
regression model, Analysis of Variance and Percentages. Data collected was analyzed
using descriptive statistics and regression analysis in particular using the Statistical
Package for Social Sciences (SPSS) software. The study found out that taking all
other independent variables at zero, a unit increase in transparency lead to 0.478
increase in quality of financial reports whereas a unit increase in leadership leads to
0.143 increase in quality of financial reports and a unit increase in computerized
accounting systems leads to 0.0915 increase in quality of financial reports of NGOs.
This infers that transparency contributes most to quality of financial reports of NGOs
followed by leadership then computerized accounting systems. The study
recommends that in order to ensure that the NGOs have quality financial reports; they
should invest on computerized accounting systems to improve the speed, timeliness,
accuracy and relevance of the financial reports of their organizations. The finance
management should also follow the legal frameworks that balance the right to disclose
against the right of confidentiality. The management should ensure that they have an
open recruitment policy for staff based on merit in order to recruit qualified staff to
enhance the quality of work in the organizations.
Publisher
University of Nairobi
Description
Thesis