Literature

Theoretical Framework

Contingency Theory

Contingency theory suggests that an accounting information system should be designed

having two unique characteristics such as flexibility and adaptability. An accounting

information system should be designed in a flexible manner so as to consider the

environment and organizational structure confronting an organization. Accounting

information systems should also need to adapt to the specific decisions being

considered. In other words, accounting information systems need to be designed within

an adaptive framework. So it will be easily managed and used by the

users.

Cognitive Theories

Cognitive fit posits that the presentation of information affects task performance.

Cognitive dissonance theory is concerned with change to eliminate inconsistency

between attitudes and behaviors.

Socio-technical theory

Socio-technical theory emphasizes the need for consistency among independent

subsystems for the larger system to achieve optimal performance.