Impact of Technology on Financial Reporting

Running Head: INTEGRATED ACCOUNTING PROJECTS 1
Integrated Accounting Projects
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Table of Contents
Abstract..................................................................................................................................................3
Chapter one............................................................................................................................................4
Introduction...........................................................................................................................................4
1. Background....................................................................................................................................4
1.2. The significance of the study and motivation...........................................................................6
1.3. The purpose/objective of the study...........................................................................................7
1.4. Research Problem and Questions.............................................................................................7
1.4.1. Problem statement.................................................................................................................7
1.4.2. Research question..................................................................................................................8
Chapter two...........................................................................................................................................9
2. Conceptual framework..................................................................................................................9
2.2. Hypotheses..................................................................................................................................9
Chapter three.......................................................................................................................................10
Research methodology........................................................................................................................10
3. Introduction.................................................................................................................................10
3.2. Research design........................................................................................................................10
3.3. Target population....................................................................................................................11
3.4. Sample design...........................................................................................................................11
3.5. Data sources.............................................................................................................................12
3.6. Data collection methods...........................................................................................................13
3.7. Data reliability and Validity....................................................................................................13
3.8. Data analysis............................................................................................................................14
3.9. Ethical declaration...................................................................................................................14
3.10. Limitation of the study........................................................................................................15
References............................................................................................................................................18
Appendix:.............................................................................................................................................22

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Abstract
The relationship between business and technology is still a major concern by most of the
technological and enterprise or business managers. The increased use of technology in the
financial reporting of business illustrates the major relations that exist between technology
challenges and responses in illustrating the future research so as to enhance the alignment that
exists between organizational performance and the adopted technology. The major objective of
this study was to make an analysis of the impacts created by technology on financial reporting.
The study was also guided by other specific objectives such as (i) to measure the rate at which
technology contributes towards the quality of financial reporting, (ii) how an organization
improves its outputs of accounting data system and if the program improves an organization's
control of internal financial reporting. The study involves the use of "descriptive research
design" in order to evaluate the research variables plus the major tools of collecting data. For this
study, the major tool that was considered for collecting data was questionnaire. Also, the study
indicated that quantitative data will be analyzed with inferential and descriptive analysis. The
study indicated that the research will consider the dependent variables (financial quality) as
relevancy, reliability and understandability and independent variables (technology systems) to be
"account8ing data processing, account8ing data storage, and accounting data retrieval." The
study also indicated that the research will involve various limitations such as time, funds, and
inadequate experience of the researchers to collect data in various organizations.
Keywords: financial reporting, technology data, data quality.

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Chapter one
Introduction
1. Background
Currently, the increased use of technology in financial accounting reporting is a new
system. Most of the studies have tried to illustrate the role played by technology in financial
reporting. In this case, financial reporting plays an important role in the organization operations.
All business are required to monitor their financial data that is in line with the activities of the
business. Financial reporting is also made up of various processes where some are complex,
burdensome and others simple. As a result of increased growth of the business by entering into
new markets, acquiring new customers and also maintain the pace of the continued evolution of
technology, the business is supposed to maintain high levels of accuracy, statuary and inventory
records. As a result of the increased number of financial transactions and exposure of errors in
information as a result of the complexity of various accounting systems, businesses are required
to process and store their accounting information with increased storage, processing capacity,
and speed. As a result of this need, financial accounting software systems were introduced and
developed (Hla, & Teru, 2015).
Today, most of the businesses or organizations integrate and automate their business
activities by implementing technology systems. In this case, technology systems are computer-
based or manual systems that are aimed at increasing the control of an organization by assigning
a quantitative role of the present, future, and past financial events. Technology systems play a
vital role in financial reporting such as data maintenance, data knowledge management,
information generation, security or data control, and data collection (Iskandar, 2015).

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In financial reporting, technology seeks to take part in improving the quantity and quality
of data in order to enhance the business's delivery of services to users hence meeting their needs.
The use of technology in financial reporting helps in recording the financial reports or
transaction s of the business with the help of software and computer. The system is a database-
based application which involves the data transaction and storage in the organization's database.
The users of the system are required to operate their activities on a database with the help of an
interface. Also, the system is required to take the necessary financial reports by accurately
transforming the stored financial information and data. Therefore, in financial accounting,
technology plays an important role in streamlining, integrating and simplifying all the process of
the business at a reduced cost through helping in the presentation of business activities to its
users inform of financial reports. As a result of increased technological innovation, various
businesses to monitor their financial transactions with the help of computerized systems than
using manual systems that involve "the use of physical ledger." A Because of the increased
technological innovation, "computerized accounting systems" have emerged which assist in
producing faithful and accurate financial reports for the organization and other external users
(Khaled, & Abdulqawi, 2015).
1.2. The significance of the study and motivation
This study's significance is aimed at illustrating the required information concerning the
"Impact of technology on financial reporting." Also, the study aims at explaining the effects and
influence created by technological systems on accounting and financial reporting. As a result of
the continued change in technology across the world, modernization has become a major aspect
of technology. As already indicated previously in the literature review, very many countries
across the world use technology for accounting and financial reporting. This indicates that

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technology is greatly increased "capitalism for information technology department and lesser
man force required by the companies" (Marshall, & Paul, 2012).
Technology systems provide organizations data concerning financial obligations,
activities, and resources that are required to be used primarily by creditors, investors and
"external decision makers" of the organization. Therefore, this study aims at providing vital
information regarding credit decisions and investment (Muhindo, et al, 2014).
1.3. The purpose/objective of the study
Technology helps various businesses to obtain the required information to organization
managers at various levels in elaborating their duties in an efficient and effective manner in
various accounting and financial area of performance evaluation, decision making, planning, and
resource control and thereby considered a major important financial system of an organization
(Muhindo, et al, 2014).
For this study, the main objective is to make an analysis of the impacts of technology on
financial reporting. Also, the paper aims at measuring the rate at which technology contributes
towards the quality of financial reporting, how an organization improves its outputs of
accounting data system and if the program improves an organization's control of internal
financial reporting (Muhindo, et al, 2014).
1.4. Research Problem and Questions
1.4.1. Problem statement
Currently, technology plays a vital role in the quality of financial and accounting
reporting by creating a relation between technological responses and challenges. The research is
required to point out the organization's future for improving technology in supporting financial