Proposed Accounting System For Greenlight Cocnut Products Philippines Corporation

Document Code: DCAVRKMI-F-URFR
MANUEL S. ENVERGA UNIVERSITY FOUNDATION

Lucena City Document Title: Undergraduate Research Final
An Autonomous University Report
Page No.: Page 1 of 25
DR. CESAR A. VILLARIBA RESEARCH AND Revision No.: 0
Effectivity Date: August 2017
KNOWLEDGE MANAGEMENT INSTITUTE
Prepared by: DCAVRKMI
QUALITY FORM Reviewed by: QMR
Approved by: President
PROPOSED ACCOUNTING SYSTEM FOR GREENLIGHT COCNUT PRODUCTS

PHILIPPINES CORPORATION
A Thesis Presented to the Faculty

of the College of Business and Accountancy
Manuel S. Enverga University Foundation, Lucena City
In Partial Fulfillment of the Requirements for the

Degree in Bachelor of Science in Business Administration
Major in Management Accounting
ABSTRACT
TABLE OF CONTENTS
Page
Title Page........................................................................................................................1
Table of Contents............................................................................................................4
Abstract...........................................................................................................................2
Rationale of the Study.....................................................................................................5
Purpose of the Research................................................................................................7
Theoretical Framework...................................................................................................8
Literature Survey...........................................................................................................10
Significance of the Research........................................................................................17
Definition of Terms.........................................................................................................18
Scope and Limitations of the Study..............................................................................19
Statement of Desired Outcomes...................................................................................20
Research Design...........................................................................................................20
Research Instrument.....................................................................................................21
Data Gathering Procedures..........................................................................................21
Respondents.................................................................................................................22
Sampling Design and Procedures................................................................................22
Hypothesis.....................................................................................................................22
Data Analysis Plan........................................................................................................22
Conceptual Framework.................................................................................................24
References....................................................................................................................25
Rationale of the Study
Technology has been continuing to dominate the world and has been always
shaping and changing how it operates. Nowadays, technologies, such as computers
and machines, are important to guarantee that the operation of businesses runs
smoothly and efficiently. It has made a large impact on many areas in businesses like
designing, engineering, managing, and planning. With the help of information
technology, technology can increase the transaction processing of an organization and
it will lead to certain competitive advantages in terms of costs, savings, reducing the
possibility of human error, and the efficiency of the operation.
The rapid changes in technology motivated accounting firms and organizations to
invest technologies to ensure that they are up to date to the latest trends. These
changes stirred the improvement of accounting methods, functions, and other related
applications. The increasing dependence of businesses on Computerized Information
Systems, such as ERPS and e-business, requires auditors to evaluate the reliability of
computer generated data supporting financial statements and analyze specific
programs and their outcomes. This is relevant since the auditor’s judgment influences
the quality and effectiveness of audit.
In today’s computerized, interconnected, global business environment,
Computerized Accounting Systems became the ‘engine of growth’ in business
organizations. It therefore involves the computerization of accounting information

systems which is established in order to facilitate decision-making. These are
associated with a number of benefits like speed of carrying out routine transactions,
timeliness, quick analysis, accuracy, and reporting (Genil & Valencia, 2013).
However, it is noticeable that the application of computerized accounting systems
has a significant effect on the auditing process done by auditors. This inspired the
researchers to conduct a study wherein they will investigate the efficiency of applying
Computerized Accounting Systems on auditing and determine the problems that may
occur in conducting it.

Purpose of the Research
The purpose of this research is to gain understanding about the efficiency of the
Computerized Accounting System on the auditing process in selected private
companies situated in Lucena City. Specifically, this study aims to answer the following
objectives:
1. Describe the profile or nature of the business in terms of:

1.1. Type of Business
1.2. Form of Business
1.3. Size of Business Organization
1.4. Capitalization
2. Determine the impact of using Computerized Accounting System in auditing
process in terms of:

2.1. Internal Control Systems
2.2. Security Measures
2.3. Good Documentation
2.4. Separation of Operation from Accounting
2.5. Adequate Disclosure
2.6. Cost Effectiveness
3. Identify the problems encountered by companies in using non-computerized
accounting system.
4. Establish significant difference on the assessment of respondents in the impact
of using Computerized Accounting System when grouped by background
characteristics.
5. Draw appropriate recommendations based on the result of the study.
Theoretical Framework
Systems Theory (ST)

Elliot (1992) developed systems theory by looking at related and interacting
components, which work together to achieve a desired purpose or set of objectives.
Wang (2005) refers to information in the sense that assuming information does not
necessarily involve any conscious mind, and patterns circulating (due to feedback) in
the system can be called information. In other words, it can be said that information in
this sense is something potentially perceived as representation, though not created or
presented for that purpose. According to Kang’ethe (2002), a system is a group of
related and interacting components, which work together to achieve a desired purpose
or set of objectives.
Kang’ethe (2002) further discussed the necessity to have a regulator essentials
to ensure that the procedure gives the anticipated level of outcome and dodge or
decrease waste. The need for efficiency and effectiveness called out further need of
ensuring harmony and cooperation between the human resource as the core resource
that controls other resources on the one hand and the other tools of trade, in particular
modern ICT on the other hand so as to realize the objectives of office secretarial
management. Hence, there is a need to clearly understand the perception and attitudes
of human resource and other areas which are open and potential to any conflict in the
course of interaction between the human resource and modern ICT. When computer
and computer technologies combined together, it will result to an information technology
system called “Infotech.” Information Technology is a general term that describes any
technology that helps to produce, manipulate, store, communicate and/or disseminate

information. Presumably, when speaking of information technology as a whole, it is
noted that the use of computers and information are associated (Wang, 2005).
Internal Control
Systems
Security
Measures
Good Computerized
Documentation Accounting Efficiency of
System Audit Process
Separation of
Operation from
Accounting
Adequate
Disclosure
Cost
Effectiveness
Figure 1: Theoretical Framework
Literature Survey
Concept of Computerized Accounting System
Marivic (2009) described a computerized accounting system as mechanized
process of facilitating financial information inflows as well as the automation of
accounting tasks such as database recording and report generation. Additionally, it

should be noted that keeping accurate accounting records is a vital part of any
organization. Apart from helping it to keep its float financially and legal, it is a
requirement of funding bodies or donors.
The computerized accounting systems involve installation of computers,
equipments, specialized and skilled workforce which may raise the overall cost for an
organization but sufficiently provides information as and when required. Sofat (2016)
stated that hardware, software, and human capabilities are components that form the
computerized accounting system. Hardware is an electric equipment that includes
computer disk drivers, cables, mouse, ports, monitors, printers, networks, ethernet, and
internet that connect them. Softwares are a set of programs that case the computer to
perform the desired work. It allows one to edit and store transaction data and generate
reports that managers use in order to run the business and take important decisions.
Lastly, human capabilities are the people who work on the computer accounting system
that are essential and critical to the success of any endeavor.
Yona (2013) stated that the computerized accounting system is a system that
uses computer softwares to process accounting data and information. This means that
all accounting process is integrated in software that can perform all accounting
processing functions. It follows the same process as the manual accounting systems.
This means that in this system, there are still the same stages of input, processing, and
output as in the manual accounting system. At the input stage, there will be data entry of
all business transaction and then the computer software will process the data and post
them to respective ledger accounts and then at the output stage, various reports are
produced such as trial balance and the financial statements.
Efficiency and Effectiveness of Computerized Accounting System on Auditing
Cohen & Sayag (2010) conducted a study about the effectiveness of internal
auditing in selected organizations in Israel. An empirical examination was done to
determine the determinants in Israeli organizations. Their findings showed that the
quality of audit work, professional proficiency, and career advancements are
determinants of an effective internal auditing. On the other hand, organizational
independence, top management, and the sector which an organization belonging to are
not determined as the factors which can affect the effectiveness of audit in a
computerized environment.
Sudsomboon & Sriwichien (2010), on the other hand, investigated the effects of
audit pressure on audit process efficiency and audit report effectiveness conducted in
Thailand. The findings revealed that knowledge of the computerized accounting system,
risk assessment competency, and quality planning judgments affect the audit
effectiveness while accountability concern, responsibility awareness, ethical pressure,
stakeholder force, audit competition, completeness of audit risk judgments, and
appropriateness of sample selected affect the audit efficiency in a computerized
accounting system environment.

Chaveerug, A. (2011) investigated the impact of accounting information system
knowledge and audit effectiveness in Thailand. It was revealed that knowledge of
computerized accounting system, risk assessment competency, and quality planning
judgments are the key factors which can affect the audit effectiveness in a computerized
environment.
Mark (2011) assessed the impact of computerized accounting system on
financial reporting in manufacturing firms in Uganda, focusing the study at Uganda
Breweries Limited. The findings showed that computerized accounting system
minimizes the errors and allows easy posting of transactions on ledgers. The financial
reports that the firm generated are reliable. The firm was also able to maintain the
financial reporting qualities such as timeliness, reliability, and accuracy when applying
computerized accounting system.
Kombo’s (2013) study was adapted from the research of Sudsomboon &
Sriwichien (2010). Based from his findings regarding the factors affecting effectiveness
and efficiency of auditing process in computerized accounting system, results show that
knowledge of computerized accounting system and quality of audit planning are the
factors that can affect the audit effectiveness in computerized accounting system in
local government authority. This conforms the findings of Chaveerug, A. (2011). Risk
assessment competency, on the other hand, is not a factor affecting audit effectiveness.
This contradicts to Chaveerug, A. (2011) statement about risk assessment competency
as a factor that can affect the audit effectiveness.

Neogy (2014) stated that there other qualitative characteristics of accounting
information that can also be maintained if there is sound internal control system in an
organization. Internal controls are procedures set up to protect assets, ensure reliable
accounting reports, promote efficiency, and encourage adherence to company policies.
Internal controls are essential to achieve some objectives like efficient and orderly
conduct of accounting transactions, safeguarding the assets in adherence to
management policy, prevention of error and detection of error, prevention of fraud and
detection of fraud, and ensuring accuracy, completeness, reliability, and timely
preparation of accounting data. If good internal control exists in any organization,
management can use information with greater reliance to maintain their business
activities properly which provide AIS. But if internal control is not strong, management
cannot achieve its goal.
Furthermore, Neogy (2014) also stated that there are certain criteria or indicators
that are supposed to be present in any accounting information system for it to be
efficient in any organization which is: cost effectiveness, good documentation, existence
of proper security measures, independent internal and external audit, separation of
other operation from accounting, and effective internal control.
Romney & Steinbert (2015) stated that developing an internal control system
requires a thorough understanding of Information Technology (IT) capabilities and risks,
as well as how to use IT to achieve an organizational control objectives. Accountants
and system developers help management achieve their control objectives by (1)
designing an effective control system that takes a proactive approach to eliminating
systems and detect, correct, and recover from threats when they occur, and (2) making
it easier to build controls into systems at the initial design stage than to add them after
the facts. They also pointed out three important functions performed by internal control:
(1) Preventive controls which deter problems before they arise. (2) Detective controls
which discovers problems that are not prevented. (3) Corrective controls which identify
and correct problems, as well as correct and recover from the resulting errors. But,
Ramly (2011) pointed that there are still many factors that can affect the efficiency and
effectiveness of computerized accounting systems such as qualified human resources,
software, and hardware and databases. Thus, if one may consider an efficient and
effective system, it should include a combination of any of the mentioned factors.
Problems of Using a Non-Computerized Accounting System
Over the past few decades, there has been a big shift from manual to automated
accounting systems. In work-life workers may never have to make a pencil entry into a
sales journal again, but it is vital to understand how double entry systems and the flow
of data through manual system work. However, the world faces a modern technology
civilization where many things works with the help of computers. Therefore there are
some errors and problems happened in using the manual system: It takes much time,
resources and effort in large organizations, and even time-consuming (Joseph, 2013).
According to Thomason (2014), lack of security is a common problems in manual

accounting system. Companies may be unable to prevent employees from reviewing
sensitive data in paper ledger and journals. This may allow employees to abuse
financial information through fraud or embezzlement. Invariably, human do make errors.
An absent of decimal point or the addition of one to many zeroes can alter the accuracy
of financial report who may be in hurry to complete the task.
Problems of Using a Computerized Accounting System
According to Scott (2017), a computerized accounting system records accounting
transactions using a computer and accounting software. A majority of companies now
use a form of computerized accounting system. They do so because the advantages of
a computerized accounting far outweigh the disadvantages. Some advantages of a
computerized accounting system are: automatically completes that parts of the
accounting cycle, allows companies to prepare up-to-date financial reports quickly,
accurate, easy to use, provides a series of security measures, and lets companies
easily analyze their financial statements. Yet, applying the computerized accounting
system is expensive. Even with the security measures the accounting software
provides, computer systems can still be hacked and data can be compromised.
Additionally, although computerized accounting systems can cut down a large number
of errors, users of the software can still make errors.
Hanini (2012) examined the risks identified with computerized accounting
system in Jordanian banks, the reasons, and the ways of preventing such risks. The
findings revealed threats to information systems resulting from employees’ lack of
experience in securing the organization’s information systems, mainly due to absence of
training on how to protect accounting systems prior to resuming their jobs and lack of
effective recruitment processes for accounts executives. Resulting from this, employees
were discovered to engage in intentional entry of inappropriate data during input,
unauthorized access to output, and man-made disasters affecting information systems.
Malami, Zainol & Nelson (2012) examined the banking industry system in
Malaysia. Results showed that the major threats challenging the computerized
accounting systems of banks in Malaysia were human unintentional threats, human
intentional threats, technological threats, environmental threats, and natural threats.
Murungi & Kayigamba (2015) found out that there are several inefficiencies that
were identified that could hinder the smooth running of the entire financial system in the
Ministry of Local Government of Rwanda. These include poor accounting information
system maintenance, inadequate on-job training for accounting and staff, and weak
internal audit.
Pogribna & Nikitenko (2015) added that using a computerized accounting system
comes with its own set of problems such as the need to protect against data loss
through power failure or viruses and the need danger of hackers stealing the data.
Computer fraud is also a concern, and one should need to instigate a system of controls
for those who have access to the information. If there is a presence of security breach
and data has been compromised, management can be held personally liable for the
loss of data.
Significance of the Research
This study establishes an understanding about the efficiency of computerized
accounting system on audit process in selected private companies in Lucena City.
Moreover, the study will benefit the following:
Accountants and Auditors. The study will help them to improve their knowledge
and competence about the latest trends of computerized accounting system in the
auditing process.
Private companies and other government organizations. The results can help
them to make adjustments in any flaw that may encounter in applying computerized
accounting system and rectify any weaknesses encountered to pave way for the
auditing process in the computerized environment.
Software developers. The study will help them to be more aware about how the
developed accounting softwares and packages can affect the audit process and
implement controls that can function as exactly as programmed.
Researchers. The study will help them to have further knowledge about auditing
in a computerized information system environment.

Future researchers. The results and findings presented in this study may be
used as a reference in conducting new related researches or test the validity of this
study in their studies,
Definition of Terms
Audit – A systematic process of objectively obtaining and evaluating evidence regarding
assertions about economic actions and events to ascertain the degree of
correspondence between these assertions and established criteria and communicating
the results to interested users.
Computerized Accounting System – A method or scheme by which financial
information on business transactions are recorded, organized, summarized, analyzed,
interpreted, and communicate to stakeholders through the use of computers and
computer-based systems such as accounting packages.
Cost Effectiveness - Something that is a good value, where the benefits and usage are
worth at least what is paid for them.
Disclosure - Additional information attached to an entity's financial statements, usually
as explanation for activities which have significantly influenced the entity's financial
results.
Documentation - Any communicable material that is used to describe, explain or
instruct regarding some attributes of an object, system or procedure.

Efficiency – measures the relationship between inputs to outputs. It is concerned with
achieving a given result with a minimum use of resources.
Internal Control – These are procedure set up to protect assets, ensure reliable
accounting reports, promote efficiency and encourage adherence to company policies.
Non-computerized Accounting System – Implies that employees perform the whole
accounting cycle manually on a periodic transactions and prepare Financial Statement
reports and other routines.
Security Measures – These refers to safeguarding the asset of a firm, protection from
unauthorized access, protection from disasters, protection from breakdowns and
interruptions, protection from undetected access, protection from loss or improper
alteration, and recovery and reconstruction of lost data.
Scope and Limitation of the Study
The study deals with determining the efficiency of computerized accounting
system in selected private companies situated in Lucena City. The research topic is
considered to be broad and it included all private companies that maintain computerized
accounting records which are being audited. The researchers chose Lucena City as the
location of the study to represent other private entities that uses computerized
information system in their profession.
During the conduct of this study, it is already expected that some documents or
records from private companies cannot be simply accessed since they were confidential
to be retrieved and to be released for the researchers. The researchers also anticipated
that not all study procedures will be executed due to time constraints.
Statement of Desired Outcomes
The research output will provide the auditors, researchers, students, researchers
etc. a broader understanding of the relationship of auditing process and internal
control's quality of the computerized environment. Furthermore, the research will
accumulate results presenting the importance of knowing the internal control system,
security measures, good documentation, separation of operation from accounting,
adequate disclosure of information in a computerized environment, and the competence
of the auditor in carrying out the auditing process. The problems encountered in auditing
process would also be cited in the findings, thus, it would be useful and beneficial not
only for students but also auditors and business professionals in forecasting and
decision-making.
Research Design
The researchers made use of descriptive (correlational) method by conducting a
query on the target samples through distribution of questionnaires to gather information

of the variables in the research study. Descriptive research is carried out to describe
existing or past phenomena and/or a subject using observation (Wilson, 2014).
Moreover, the chosen method enables the researchers to assess the relationship of
auditing process and the variables in relation to the company’s computerized
information system. Also according to Wilson (2014), descriptive studies tend to provide
accurate information, and help to form the basis of simple decision-making by setting
out to provide answers to who, what, when, where and how questions.
Research Instrument
Questionnaires will be provided and utilized by the researchers to accumulate
necessary information in pursuance of research objectives. A questionnaire comprises a
set of questions designed to generate data suitable for achieving the objectives of a
research project, which can be used to gather both qualitative and quantitative data
(Wilson, 2014). The researchers selected the questionnaire for it is cost-effective,
convenient to administer, and will provide accurate and relevant data to the study.
The questionnaire has five sections. The first part is about the profile or nature of
the business; the second part is about the performance of the computerized accounting
system; the third part is about the perception of auditors on the efficiency of
computerized accounting system in the audit process; the fourth part contains the
problems encountered when auditing in a computerized environment; Lastly, the fifth
part pertains to the respondent’s opinion whether their skills and competence can affect
the audit performance in a computerized environment.

The instrument is structured using the Likert Scale based from their level of
agreement. A scale of 1 to 5 is used where 1 is the lowest and 5 is the highest.
Data Gathering Procedures
The data gathering is bounded to giving out survey questionnaires to the
selected samples since the researchers' focus is to assimilate the perceptions and
attitude of the auditors in computerized information system on auditing. Subsequently,
the researchers correlated the collected data from existing literatures of the related
subject. Secondary data will be used if the findings require further validation.
Respondents/Units of Analysis/Subjects of the Study
The target sample size of the study is 50 primarily composing of auditors in
Lucena City. The researchers chose auditors as their respondents considering that they
are the one who carry out the auditing procedures in a manual or computerized
environment.
Sampling Technique and Procedure
The researchers picked non-probability convenience sampling technique in
choosing representatives in a selected population. The said sampling technique is
believed to be helpful in confronting access, time and resource constraints.

Hypothesis
Ho: There is no significant effect of Computerized Accounting System on the efficiency
of audit process in selected private companies in Lucena City.
Data Analysis Plan
The data gathered from the respondents will be tallied, summarized, and
interpreted by using descriptive statistics of weighted average mean. The data will be
presented in tables and graphs. The obtained weighted average mean will be used in
drawing conclusions in connection to the study’s objectives.

Conceptual Framework
Input Process Output
Business Profile
Impact of
Computerized
Accounting System Survey
Questionnaires
Statistical Tools Efficiency of CAS on
Audit Efficiency Analysis, Evaluation, Audit Process
Factors and Interpretation of
Data
Problems of
Computerized
Accounting System
Figure 2: Conceptual Framework for the Study
The model used in the formulation of the conceptual paradigm is the IPO (Input,
Process, and Output) Model. The input used by the researchers are the demographic
profile of the business, the impact of using the Computerized Accounting System in the
audit process, factors affecting the efficiency of the audit process, and problems that
may encounter in a Computerized Accounting System. The researchers will distribute
the survey questionnaires to gather the results. The output of the research is concerned
with the efficiency of Computerized Accounting System in the Audit Process in selected
private companies in Lucena City.
REFERENCES
Basu, S. (2011). Fundamentals of Auditing. New Delhi, India: Dorling Kindersley.
Chaveerug, A. (2011). The Role of Accounting Information System Knowledge on Audit

Effectiveness of CPAs in Thailand. International Journal of Business Strategy,
11(3), para 5.
Cohen, A., & Sayag, G. (2010). The Effectiveness of Internal Auditing: An Empirical
Examination of its Determinants in Israeli Organisations. Australian Accounting
Review, 20(3), 296-307.
Genil, D. & Valencia, R. (2013). The Impact of Using Computerized Accounting

Systems (CAS) in Financial Reporting among Small and Medium Enterprises in
Lipa City. Unpublished Thesis. University of Batangas, Lipa City, Philippines.
Hanini, E. (2012). The Risks of Using Computerized Accounting Information Systems in

the Jordanian Banks; Their Reasons and Ways of Prevention. European Journal
of Business and Management, 4(20), 53-63.
Kombo, B. (2013). The Effects of Computerized Accounting System on Auditing

Process: A Case Study of Mtwara District Council. Unpublished Doctoral Thesis.
Mzumbe University, Morogoro, Tanzania.
Malami, A., Zainol, Z., & Nelson, S. (2012). Security Threats of Computerized Banking
Systems (CBS): The Managers’ Perception in Malaysia. International Journal of
Economics and Finance Studies, 4(1), 21-30.
Marivic, A. (2009). Evaluating the Security of Computerized Accounting Information

Systems: An Empirical Study on Egyptian Banking Industry. Unpublished
Doctoral Dissertation. University of Abardeen, Abardeen, Scotland.
Mark, B. (2011). The Impact of Computerized Accounting on Financial Reporting in

Manufacturing Firms in Uganda: A Case Study of Uganda Breweries Limited.
Unpublished Thesis. Makerere University, Kampala, Uganda.
Murungi, S. & Kayigamba, C. (2015). The Impact of Computerized Accounting System

on Financial Reporting in the Ministry of Local Government of Rwanda. Journal
of Emerging Trends in Economics and Management Sciences, 6(4), 261-265.
Neogy, T. (2014). Evaluation of Efficiency of Accounting Information Systems: A Study

on Mobile Telecommunication Companies in Bangladesh. Global Disclosure of
Economics and Business, 3(1), 40-55.
Pogribna, O. & Nikitenko, O. (2016). Advantages and Disadvantages of a Computerized

Accounting System for Small Businesses. Unpublished Thesis. National
University of Food Technologies, Kiev, Ukraine.
Racaza, C. & Evangelista, R. (2011). Auditing Theory for Students & Practice Guide for
Auditors. Manila, Philippines: GIC Enterprises & Co., Inc.
Ramly, F. (2011). Computerized Accounting Information System. Decision-making,

16(1), 12-31.
Romney, M. & Steinbert, P. (2015). Accounting Information Systems. Harlow, Essex:

Pearson Education Limited.
Scott, C. (2017). College Accounting: A Career Approach. Boston, MA: Cengage

Learning
Sudsomboon, S. & Sriwichien, T. (2010). Audit Pressure: Effects on Audit Process

Efficiency and Audit Report Effectiveness in Busy Season of CPAs in Thailand.
European Journal of Management, 10(3), para. 15.
Yona, L. (2013). Financial Accounting for Executive MBA. UK: AuthorHouse

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Document Code: DCAVRKMI-F-URFR

MANUEL S. ENVERGA UNIVERSITY FOUNDATION

PROPOSED ACCOUNTING SYSTEM FOR GREENLIGHT COCNUT PRODUCTS

A Thesis Presented to the Faculty

In Partial Fulfillment of the Requirements for the

Rationale of the Study

shaping and changing how it operates. Nowadays, technologies, such as computers

designing, engineering, managing, and planning. With the help of information

technology, technology can increase the transaction processing of an organization and

possibility of human error, and the efficiency of the operation.

The rapid changes in technology motivated accounting firms and organizations to

applications. The increasing dependence of businesses on Computerized Information

computer generated data supporting financial statements and analyze specific

the quality and effectiveness of audit.

In today’s computerized, interconnected, global business environment,

Computerized Accounting Systems became the ‘engine of growth’ in business

organizations. It therefore involves the computerization of accounting information

systems which is established in order to facilitate decision-making. These are

However, it is noticeable that the application of computerized accounting systems

occur in conducting it.

Purpose of the Research

Computerized Accounting System on the auditing process in selected private

1. Describe the profile or nature of the business in terms of:

process in terms of:

of using Computerized Accounting System when grouped by background

Systems Theory (ST)

Elliot (1992) developed systems theory by looking at related and interacting

components, which work together to achieve a desired purpose or set of objectives.

this sense is something potentially perceived as representation, though not created or

presented for that purpose. According to Kang’ethe (2002), a system is a group of

Kang’ethe (2002) further discussed the necessity to have a regulator essentials

and computer technologies combined together, it will result to an information technology

technology that helps to produce, manipulate, store, communicate and/or disseminate

information. Presumably, when speaking of information technology as a whole, it is

Figure 1: Theoretical Framework

Concept of Computerized Accounting System

Marivic (2009) described a computerized accounting system as mechanized

process of facilitating financial information inflows as well as the automation of

accounting tasks such as database recording and report generation. Additionally, it

requirement of funding bodies or donors.

The computerized accounting systems involve installation of computers,

computerized accounting system. Hardware is an electric equipment that includes

that are essential and critical to the success of any endeavor.

produced such as trial balance and the financial statements.

Efficiency and Effectiveness of Computerized Accounting System on Auditing

auditing in selected organizations in Israel. An empirical examination was done to

quality of audit work, professional proficiency, and career advancements are

determinants of an effective internal auditing. On the other hand, organizational

effectiveness while accountability concern, responsibility awareness, ethical pressure,

stakeholder force, audit competition, completeness of audit risk judgments, and

appropriateness of sample selected affect the audit efficiency in a computerized

accounting system environment.

Chaveerug, A. (2011) investigated the impact of accounting information system

knowledge and audit effectiveness in Thailand. It was revealed that knowledge of

computerized accounting system, risk assessment competency, and quality planning

Mark (2011) assessed the impact of computerized accounting system on

financial reporting in manufacturing firms in Uganda, focusing the study at Uganda

Breweries Limited. The findings showed that computerized accounting system

computerized accounting system.

This contradicts to Chaveerug, A. (2011) statement about risk assessment competency

as a factor that can affect the audit effectiveness.

Neogy (2014) stated that there other qualitative characteristics of accounting