Accounting information systems and quality of financial reporting in Uganda:

Abstract

This study aimed at determining the impact of accounting information systems on quality of financial reporting of Pallisa District Local Government with the study objectives; To establish the effects of internal control component on the quality of financial reporting, to investigate the influence of perceived ease of use on the quality of financial reporting, to establish the impact of perceived usefulness on the quality financial reporting in Pallisa District Local governments Uganda. The study was anchored on the Technology Acceptance Model (TAM) from which the dimensions were adopted. In addition to that, the study applied a cross sectional research design and quantitative approach. The study had a target population of 55 employees in PDLG and collected data from a sample size of 48 respondents as guided by Krejcie and Morgan (1970). Data was collected using close ended questionnaires. Furthermore, data analysis was done using statistical package for social sciences (SPSS) version 20 from which frequency tables, descriptive statistics, reliability, validity, correlation and regression results were obtained. The study findings showed that internal control components (r = 0.562, p < 0.05), perceived ease of use (r = 0.784, p< 0.05) and perceived usefulness (r = 0.627, p < 0.05) have a positive and significant effect on quality of financial reporting. Based on the findings of the study, the researcher therefore concludes that internal control components, perceived ease of use and perceived usefulness have a positive and significant relationship with quality of financial reporting. The study also concludes that the users perception of controllability, flexibility and response time have a positive attitude on the quality of the financial reporting. The study therefore, recommends that Pallisa District local government should consider routine training of users in respect to the new systems introduced. This will improve the perceived ease of use of the systems and hence improve of the quality of financial reporting through timely reporting, preparation of comparable reports, predicting under stability and relevance of reports.