Computerized Accounting Systems: Measuring Structural Characteristics

Abstract

This study aimed to develop a standard measurement tool for the effective assessment of computerized accounting systems (CAS) quality and effectiveness based on systems theory, in terms of their structural characteristics or functional components. The researcher identified five structural characteristics (components or subsystems) of CAS, namely internal controls, automated data-processing, relational database, automated reporting, and enhancing technologies components. The operationalization of these structural characteristics resulted in a 25-item index that forms the measurement tool developed. The 25-item index was constructed based on the review of prior literature to ensure content validity. The CAS measurement tool was administered to 384 active members of the Institute of Chartered Accountants of Nigeria (ICAN) through an online survey, and 234 useful responses were collected and analyzed to test the validity and reliability of the measurement tool. The researcher assessed the construct validity of the CAS measurement developed using the exploratory factor analysis, and the internal and external reliability using the Cronbach’s alpha test of consistency and test-retest statistics, respectively. The results of the study suggest that the CAS measurement tool developed has strong content and construct validity as well as high internal and external reliability. It is, therefore, believed that the tool would yield valid and reliable results when employed in the assessment of computerized accounting systems. The study is significant as it introduces a new approach to assessing the quality of accounting information systems in terms of their structural characteristics instead of qualitative characteristics such as perceived advantages and ease-of-use of the systems. Further research is suggested to confirm the validity and reliability of the CAS measurement tool presented in this study.

Keywords: Accounting information systems, Automated data-processing, Automated reporting, Computerized accounting systems, Enhnacing technologies, Functional components, Internal controls, Relational database, Structural characteristics, Systems theory

DOI: 10.7176/RJFA/11-16-05

Publication date:August 31^st 2020