Assessing the Impact of Computerized Accounting Systems at Deloitte

Verified

Added on 2022/09/30

AI Summary

This report examines the effectiveness of computerized accounting system (CAS) usage on the organizational performance of Deloitte. It begins with an executive summary, introduction, problem statement, research aim, and research questions. A literature review explores the conceptual framework of accounting concepts, computerized accounting systems, and relevant literature, including the application of CAS. The methodology section details data collection procedures, research hypothesis, data analysis procedures, and model specifications. Findings and analysis are presented, followed by a discussion of the results, conclusions, research limitations, and recommendations. The study utilizes secondary data from the Deloitte website, employing a descriptive research design to assess the relationship between CAS usage and organizational performance. The analysis involves descriptive and inferential statistics, concluding with a significant relationship between CAS and Deloitte's performance and providing actionable recommendations.

Running Head: CAS & ORGANIZATION PERFORMANCE 1
The Effectiveness of Computerized Accounting System Usage in Organization a case of
Deloitte Company
Institutional Affiliation
Name
Date

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser

CAS &ORGANIZATION PERFORMANCE 2
Executive Summary
The study explored the effectiveness of usage of Computerized Accounting system in an
organization. The aim of the study was to assess the effectiveness of usage computerized
accounting system on the performance of the organization a case of Deloitte Company. The
research questions of the study were; what is the level of usage of computerized accounting
systems software and Deloitte company performance? Another research question was what is
the existing relationship between computerized accounting systems usage and Deloitte
performance? Besides, the literature review that was employed relates the dependent and
independent variables. In this case, the dependent variable is organization performance whereas
the independent variable is computerized accounting system usage. The study used secondary
data from the Deloitte website. The study used a descriptive research design since it aimed at
achieving the relationship between the variables. The Analysis was done by using two levels of
descriptive and inference statistics. The study found out that there is a significant relationship
between Computerized Accounting system usage and organization performance a case of
Deloitte since its level of significance was less than 5%. The study also provided summary
conclusions together with the recommendations in the study.

CAS &ORGANIZATION PERFORMANCE 3
Table of Contents
Executive Summary.....................................................................................................................................2
1.0 INTRODUCTION................................................................................................................................. 4
1.1 Problem Statement.................................................................................................................................5
1.3 Research Aim........................................................................................................................................ 6
1.4 Research Questions...............................................................................................................................6
2. Literature review.................................................................................................................................... 7
2.1 Conceptual review.................................................................................................................................7
2.1.1 Definition of Accounting Concepts.................................................................................................7
2.1.2 Computerized accounting systems................................................................................................. 7
2.1.3 Computerized accounting software................................................................................................ 8
2.2. Related literature.................................................................................................................................. 8
2.3 Application of computerized Accounting Systems.............................................................................. 10
3. Methodology......................................................................................................................................... 10
3.1. Data collection Procedures................................................................................................................. 10
3.2. Research Hypothesis...........................................................................................................................11
3.3. Data Analysis Procedures...................................................................................................................11
3.4. Model specification............................................................................................................................ 12
4. Findings and Analysis........................................................................................................................... 12
5. Discussion of Results.............................................................................................................................14
6. Conclusion............................................................................................................................................. 15
6.2. Research Limitations.......................................................................................................................... 16
6.3. Recommendations.............................................................................................................................. 16
References.................................................................................................................................................17
Appendix................................................................................................................................................... 21
A. List of Tables................................................................................................................................. 21
B. List of figures................................................................................................................................ 22

CAS &ORGANIZATION PERFORMANCE 4

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser

CAS &ORGANIZATION PERFORMANCE 5
The Effectiveness of Computerized Accounting System Usage in Organization
1.0 INTRODUCTION
This particular study will seek to assess and analyze the impact and effect that
computerized accounting systems usage have on the quality of financial reports. Specifically, the
research was conducted from Deloitte accounting firm as the case study (UKEssays, 2017). In
the research study, major focus and concern will be drawn towards analyzing the effectiveness
that comes with level of computerized accounting systems as used by the Deloitte Company
(Sugut, 2014). Additionally, the research study will as well contain detailed explanations of the
relevant information and key terms and concepts as they will be identified. By definition,
accounting can be defined as the process of identifying, measuring and present relevant financial
data so as to facilitate informed decision making (Sekyere, Amoateng, and Frimpong, 2017). The
usage of Computerized accounting systems on the other hand can be referred to as the electronic
accounting software that are used to prepare, present and communicate accounting information
(Suleiman, 2016). Therefore, as per the stated topic of research, this chapter is mainly a
presentation of the key sections that are covered throughout chapter one of the study. In
summary, this chapter will contain parts such as the problem statement, the aim of conducting
the study, research questions and lastly the organization structure of Deloitte Company limited.

CAS &ORGANIZATION PERFORMANCE 6
1.1 Problem Statement
The accounting practice and process plays a relatively vital role in the affairs and
operations of an entity. The nature, size or type of operations that an entity is conducting has
little or no significance towards the accounting process. Therefore, all organizations whether
profit making, non-profit organizations, large or small undertake the process of accounting
(Rumsey, 2017). The increasing demand for effective, efficient and presentation of error free
accounting records and information has overtime resulted into significant changes. The need for
more effective accounting practices and systems ahs ultimately given rise to the development of
new and technologically advanced systems of accounting. Organizations such as Deloitte have
changed and moved away from manual accounting systems to more computerized software.
However, not all business entities and organizations have been in position to embrace this new
wave of changes (Kimani, Nyang’au and Ngacho, 2018). Limiting factors such as inadequate
financial resources and the lack of skilled man power have to a certain extant made the whole
process rather very costly. On a positive note, it is clearly evident that the change and adoption
of these accounting systems has yielded positive results. However, despite the already existing
information and researched data concerning the topic of study, a lot is still required (Amviko,
2011). It is therefore due to such a basis that the researcher chose to under and in-depth
assessment of the several concerns surrounding the quality of accounting information in relation
to the new systems.

CAS &ORGANIZATION PERFORMANCE 7
1.3 Research Aim
The research study is aimed specifically assessing and analyzing the changes that have
been experienced and witnessed as a result of embracing the computerized accounting systems.
Under this particular assessment, major emphasis will be attributed to the chosen objectives of
the study (El-Dalabeeh &Alshbiel, 2012). For instance, the research will specifically evaluate the
benefits that the company has had from using the computerized accounting systems to present
financial data and information. On a broader scope of analysis, the study will also aim at
evaluating the significant contribution that s brought about by computerized accounting towards
enhancing company financial performance (Ahmady, Mehrpour and Nikooravesh, 2016). This
will therefore take in to account making relevant comparisons between the manual systems of
account against the computerized accounting software. From such findings and results the study
should be in position to facilitate and informed decision making on whether of the concerned
stake holders.
1.4 Research Questions
To be more specific about the study, the following questions will be used as the specific
questions of the study.
i. What is the level of usage of computerized accounting systems software and Deloitte
company performance?
ii. What is the existing relationship between computerized accounting systems usage and
Deloitte performance?

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser

CAS &ORGANIZATION PERFORMANCE 8
2. Literature review
2.1 Conceptual review
2.1.1 Definition of Accounting Concepts
According to several accounting professionals and accounting auditors, bookkeeping
contains all the verbal communications of a business that are acknowledged by several countries
(Bosire, 2012). Many authors have come up with several definitions as shown above. Weber in
2011 states that owners of businesses are entitled to control and management of the financial
status of their companies by use of accounting processes (Brown et al, 2015). Also, Sacco in
2008 provides more ‘clarification’ in that accounting is all about the process by which financial
reports used as the essential factors that can be reviewed by stakeholders as a main
communication that is analyzed, summarized and later interpreted and this has led to the
development of ‘accounting software’ Bertalanffy, 2010).
2.1.2 Computerized accounting systems
The term computerized accounting is defined as the average number of items that
contains all the software like storage, inputs, processing, transactions, gathering and
disseminating information regarding finance (Bosire, 2012). Currently, there is an automation in
the process of carrying out accounting activities where professional accountants apply this
system to operate their activities (Daoud & Triki, 2013). Financial data about business operations
is recorded, organized, processed, compiled, analyzed, interpreted, disseminated and later
provided to the stakeholders by help of computers and other electronic devices via computer
based systems like internet, social media and software accounting ‘pinpoint (Brown et al, 2015).

CAS &ORGANIZATION PERFORMANCE 9
2.1.3 Computerized accounting software
A computerized accounting software is all about the software that is employed in
processing and analyzing the work of accounting information systems that are created with the
aim of making management easy and also to enable quick decision making (Gray, 2011). This
software like QuickBooks are developed to perform a number of tasks like frequent accounting
information review, fast data analysis, minimizing of time, provision of accurate financial
statements and reports (Gray, 2011). Application of accounting software provide efficient and
effective flow of information thus raising the firm’s potential to achieve its business strategic
objectives (Daoud & Triki, 2013). At the end, companies like Deloitte is able to increase the
survival of the firm. All this can be the procedures in entering transactions within the software
(Haigh, 2011).
2.2. Related literature
Alshebeil (2010) carried out a research study that predicts the future function of
Computerized Accounting Systems in several Local Governments with an intention of
supporting competition with other local governments mainly those with within Jordan and
having many commercial banks around them. In experience, it is statistically estimated that there
is a large impact of financial information systems in the process of achieving a higher level in
improving the process of pricing and evaluate new ways of minimizing the costs when services
are provided in the banking sector. In addition, Amveko (2011) conducted a research relying on
the objectives of ‘discovering the impact concerned with financial reporting’ and also another
research on Computerized Accounting Systems and found out that they have the ability to
implement the efficiency and accuracy of financial reports for the good of advertisement

CAS &ORGANIZATION PERFORMANCE 10
(Abdallah, 2012). According to these researchers, Computerized Accounting Systems create
financial reporting that provide better efficiency of companies (Alshebeil, 2010).
Daoud & Triki (2013) conducted a research study about the users of Computerized
Accounting Systems and in their analysis, thy observed that most of these people who employ
this system in their companies have higher chances to have their businesses operate better
(Abdallah, 2012). The objective of this research was to have more knowledge on the influence of
applying more computerized systems in assemble accounting information that can be used in an
‘ERP environment’ that produces the functioning and performance of the business (Ahmad,
2013). Basing on the results obtained from the study, the researcher discovered that competence
exists within organizations and has a positive impact to the performance of the firm that uses
Computerized Accounting Systems. In addition, Okoye & Gbegi (2012) investigated on the
effect of Computerized Accounting Systems on services within the sector of banking. The
findings showed that this system gives ‘guarantees’ that are reliable in the sector of banking. The
researcher later emphasizes that this system can be employed by banks that care for their
employees to be more knowledgeable with the system to increase the performance and success of
the business (Ahmad, 2013).
In the same way like other writers, Abdallah (2012) carried out a research to polish and
clarify on the impact of using accounting information system on providing financial reports that
are of high quality every year (Alfred, 2014). The study was conducted in public companies and
it was found out that the emphasis on use of Information Accounting Systems provided high
quality financial reports. The researcher concluded that many professional accountants should

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser

CAS &ORGANIZATION PERFORMANCE 11
aim at improving the machine uses under the departments of accounts and also train more the
staff on using the Information Accounting System (Alfred, 2014).
2.3 Application of computerized Accounting Systems
This implies the use of computer programming languages to enter, process, analyze and
store accounting data. This system is always useful during innovation that supports firms to
apply computer knowledge and programs in accomplishing tasks that would not be done
manually. The Computerized Accounting Systems has bookkeeping data that are created to make
efficient management and decision making in the company (Alshebeil, 2010). This system also
used with an aim of increasing the speed of record keeping, fast analysis, correctness and also
simple to understand.
3. Methodology
3.1. Data collection Procedures
For data collection, the secondary sources of the data were used. In this case, secondary
data about the Deloitte financial performances and the level of usage of computerized accounting
systems in percentage. Data about organization performance from 2005 to 2018 was collected
from the link financial reports of the company using the link
https://www.payscale.com/research/US/Employer=Deloitte_Consulting_LLP. Whereas data about the
usage of CAS was retrieved using https://www2.deloitte.com/us/en/pages/risk/solutions/qspace-it-
quality-compliance.html. Therefore, the aim of the study is to assess the effectiveness of usage

CAS &ORGANIZATION PERFORMANCE 12
computerized accounting systems on the organization performance a case of Deloitte Company
in Australia (Mohamed & Tahir, 2012).
3.2. Research Hypothesis
The research hypothesis helped to analyze critically the research questions in the study.
The statements of research hypothesis are as below:
RHo: there is no significant relationship between Usage of computerized accounting
systems and the performance of the organization.
RHA: there is a significant relationship between usage of computerized accounting
system and the organization’s performance.
3.3. Data Analysis Procedures
Quantitative data about performance of the organization for 13 years from 2005 to 2018
and the level of usage of computerized system in the organization. In this case, quantitative
research as research methodology was preferably used because it addresses the set research
hypothesis about the variables in the study (Morrison, 2015). Also, the descriptive research
design was adopted since the study aimed at achieving the relationships between the variables
(Deloitte Release, 2018). The analysis was done in different stages that are descriptive summary
statistics and inferential summary statistics about the variables. The data outputs were presented
in tabular and graphical forms (Imeokparia, 2013).