Accounting Information System and Firm Profitability

This report examines the relationship between Accounting Information Systems (AIS) and firm profitability. It begins with an abstract summarizing the study's purpose: to investigate the impact of AIS on company profitability. The report highlights the role of accounting in recording financial transaction...Read More

Running head: RESEARCH METHOD
The relationship between the role of Accounting Information Systems and firm profitability
Name of the Student:
Name of the University:
Author’s Note:

1
RESEARCH METHOD
Abstract
The current paper has the purpose of creating knowledge of the impact of accounting information
system on the profitability of the companies. The background of the paper cites that accounting
is the process of recording all the transactions in the monetary values and thereafter determining
the profit and loss of a business. The development of information technology has led to the
construction of accounting information system and this process has improved the data processing
method as well recording of all the transactions. The accounting information system thereby
assists in the construction of quality and error free financial statements that can be used for
further use. It is seen that the objectives of the research has addressed the aspects that would be
answered with the support of the results. The literature review explains the aspects and the
elements that are linked to this topic and this is helpful in creating an idea with the help of which
further analysis in the current time period can be done. The methodology has explained the kind
of data that is used and it is seen data with the help of interview has been collected. The analysis
that has been done explains that accounting information system has a direct and positive impact
on the profitability of the companies and therefore most of the companies have been making use
of this software in order to enhance their performance and profitability from the market. The
outcome has been able to answer the objectives and therefore it is seen that the results attained
are justified.
Key Words
Accounting, Accounting Information System, Profit, Financial Statement, Quality, Error Free,
Data Recording, Data Processing.

2
RESEARCH METHOD
Table of Contents
Chapter 1: Introduction....................................................................................................................5
1.1 Background of the Study.......................................................................................................7
1.2 Problem Statement...............................................................................................................10
1.3 Research Aims and Objectives............................................................................................11
1.4 Research Question...............................................................................................................12
1.5 Research Significance..........................................................................................................12
1.6 Research Hypothesis............................................................................................................13
1.7 Definition of the key terms..................................................................................................13
Chapter 2: Literature Review.........................................................................................................15
2.1 Introduction..........................................................................................................................15
2.2 Accounting Information System..........................................................................................15
2.3 Accounting Information System and Financial Performance..............................................20
2.4 Accounting Information System and Performance Management........................................22
2.5 Qualities of Good Accounting Information System............................................................24
2.6 Profitability and decision making........................................................................................25
2.7 Relationship between accounting information system and profitability.............................26
2.8 Effects of Accounting Information System on Profitability................................................28
2.9Summary of the literature.....................................................................................................29
Chapter 3: Research Methodology................................................................................................30

3
RESEARCH METHOD
3.1 Introduction..........................................................................................................................30
3.2 Justification of the selection of the methodology................................................................30
3.3 Research Philosophy............................................................................................................31
3.4 Research Approach..............................................................................................................31
3.5 Research Design..................................................................................................................32
3.6 Qualitative Data...................................................................................................................33
3.7 Kind of Data Used...............................................................................................................33
3.8 Process of data collection....................................................................................................34
3.9 Data Analysis Plan...............................................................................................................34
3.10 Ethical Consideration.........................................................................................................34
Chapter 4: Data Analysis and Discussion......................................................................................35
4.1 Introduction..........................................................................................................................35
4.2 Interview Analysis...............................................................................................................35
4.3 Discussion............................................................................................................................43
4.4 Thematic Analysis...............................................................................................................44
4.4.1 Effects of Accounting Information on Profitability......................................................44
4.5 Summary of the results........................................................................................................45
Chapter 5: Conclusion, Recommendation and Future Work.........................................................46
5.1 Conclusion...........................................................................................................................46
5.2 Addressing the objectives....................................................................................................47

4
RESEARCH METHOD
5.3 Recommendation.................................................................................................................49
5.4 Future Work.........................................................................................................................49
Reference List................................................................................................................................51
Bibliography..................................................................................................................................60
Appendix........................................................................................................................................67
Interview Questions...................................................................................................................67

5
RESEARCH METHOD
Chapter 1: Introduction
All the companies that are looking to attain their strategic aims and objectives is an
efficient and effectual one in order to attain the key objective of any firm. This is known to be
the development and the profitability and thereby able to optimise the market value and enhance
the revenue of the owners and the several other processes. This may lead to enhanced
performance and enhancement in their profits within the age that is featured by the technological
advancement and competition. This assists in gaining knowledge in order to have an
understanding with the help of which better decision making process with the help of effective
data could be utilised (Libby 2017).
The attractiveness towards this process has a precise effect on the financial performance
of the firms in addition to the rise in the interest in the participation of the professional
accountants in the different phases of the development is in accordance to the accounting
information system. It is done for the ones who have been participating from the effect of a clear
and positive on the success in relation to the performance of the system (Chenhall and Moers
2015). This assists the managers to undertake decisions and construct strategies and the
assessment and that the contemporary firms cannot sustain their activities without the availability
of the accounting information systems and distinctively computerise them. This has been the
role in enhancing the significance of these processes within the business enterprise.
Conversely, it is seen that the companies need to pay for their financial expenses and the
efforts towards a huge amount of investment. This is done in order to establish a computerised
accounting process, the computers are in need of software and hardware and even need skilled
personnel, which satisfies the companies to attain these systems. The attainment of these systems

6
RESEARCH METHOD
are done by sacrificing other resources in order to have an effect on the usage of the accounting
information process and the computerised financial performance and attain them simultaneously.
This assists the companies to gather investment opportunities for the utilisation of these
resources and thereby attain return based investments other than the investments within these
systems (Pérez-Méndez and Machado-Cabezas 2015).
In the current time period, there are several accounting techniques and tools that are
available to the companies, which they can make use of in order to improve their financial
activities. Accounting Information System (AIS) is one much model that is utilised by most of
the business enterprise in order to preserve, process acquire and announce the finance related
data. This process can be used by various owners like the advisers, tax agents, business
researchers and accountants and in some cases even by the managers of the firms.
Fundamentally, this can assist in the method of facilitating the process of undertaking decisions
within the business enterprise and can be customised in accordance to the demands of the
business environment, framework of the business and the actions that are undertaken within a
company. Christensen, Nikolaev and Wittenberg‐Moerman (2016) explains the fact that the
essential factor that is related to the study associates to the assessment of the impact accounting
information system in accordance to the extent of profitability of the companies as a whole.
Accounting provides essential business data in accordance to the transactions in terms of
pecuniary because of the fact that accounting is a way of classifying, assessing and acquiring
along with communicating the requisite information for the purpose of undertaking business
decisions. Otley (2016) explained that accounting information system is an essential part of the
information process of an organization that can be helpful in the deliverance of the processed
information. Significantly, this data that has been processed assists the companies in collecting

7
RESEARCH METHOD
the key information that is required in order to attain the business decisions and therefore has an
impact on the profitability of the organization.
1.1 Background of the Study
The development of the international economic scenario has been due to the development
in the information technology, swift alterations in the process of production and enhancement of
the sophistication of the customers, extensive level of market competition and skimming
operations. These aspects have brought about unethical aspects among the manufacturers in
order to stay in line with the complex and the unpredictable dynamics of the business. This has
brought to the face the significant function of accounting data in the business and the economic
disclosure effectively accordance to the efficiency of the management (Cassar, Ittner and
Cavalluzzo 2015).
Galy and Sauceda (2014) addressed that accounting addresses the business language as
has the aim of recording all the transactions of a company or any other bodies that can be explain
in monetary values. Grounded on the existing concept, accounting is looked upon to be the
scheme and the process of classifying, gathering, summarising and communicating the data that
are fiscal in nature that is vital in order to undertake economic decisions.
The performance of accounting for a number of years has enhanced right from the system
of single entry to the double entry system. The key goal of the accounting process has been to
provide the financial information that is inclusive of the sales, purchases, income and the costs of
the firm but the current modern accounting world, maintenance is helpful in several ways
(Seethamraju 2015). In the past, accounting was done in order to have knowledge about the loss
and the profit of the companies but in the current time period this process is even helpful in
enhancing the level of profitability of the company with the help of accounting information

8
RESEARCH METHOD
process. The companies include transactions which manufacture production for effective
evaluation of the business performance and the accounting information system is a deliverance
process for the purpose of accounting.
Accounting Information System (AIS) is one of the technique, which when established in
the area of Information and Technology process were constructed in order to assist in the control
and the management of the topics that are similar to the economic and the financial aspect of the
companies. However, the drastic development in the technology has created the possibility of
using and creating accounting data from the strategic perspective (Dwivedi et al. 2015).
Accounting Information System (AIS) as a section of the information process of a
company are looked upon to assist in the process of making decisions within any company. This
needs to be customised in accordance to the environment of the company, their need of tasks and
the framework that is utilised by them. An accounting information system is regarded to be a
framework that is utilised by the companies in order to gather, preserve, manage, retrieve and
process and document their financial information so that this can be exploited by the advisers,
business researchers, accountants and other skilled personnel.
Furthermore, skilled and experienced accountants function along with the accounting
information system in order to make sure that the enhanced level of preciseness and in the
financial transactions of the organization and the process of maintaining records are maintained.
The financial information is available easily for the ones who legitimately are in need of
accessing it, by keeping all the information same and secured and this indirectly has a
development on the performance and the productivity of any company (Marti, Rovira‐Val and
Drescher 2015).

9
RESEARCH METHOD
In addition, the management of several companies that are operational in United
Kingdom are heavily dependent on the data that is created from the accounting data system that
has been used by the firm (Hribar, Kravet and Wilson 2014). Furthermore, the report quality are
essential to come up with appropriate investment and a conventional process of recording,
documenting and summarising the financial reports of the companies, which creates decisions
that are less optimal in nature. The investments that are made in effective and reliable accounting
process have become an essential issue for the managers as it may lead to effective management
and the assessment of the performance of the companies.
Accounting information system is a process in most, if may not be all, managerial
decisions related to finance for numerous companies (Peters et al. 2016). In the economies that
are developed, these decisions have worth of billions of dollars every year. In certain instances,
the decisions are lack the quality. In the same manner, if several researches can enhance the
process of decision making with the help of enhanced data and this will be beneficial for the
community.
The accounting information system is regarded to be one of the most essential processes
for any companies. Lawson et al. (2015) explained that its objectives have been necessarily
providing information to the managers numerous levels. This information assists them in
discharging their accountabilities in an efficient and effective way in the aspect of making plans
control of the resources, assessment of the performance and undertaking the process of making
decisions. Accounting information systems are regarded to be the tools, which when
implemented in the area of information and technology systems, which have been constructed in
order to assist the management and the supervision of the topics that are associated to the
economic and the financial aspect of the companies (Nallareddy and Ogneva 2016). But the

10
RESEARCH METHOD
rapid and the advance development in the technology has created the possibility of creating and
making use of the accounting information from the strategic perspective.
The essential intention of the accounting information system in a firm is to provide
information in relation to the losses and the profits and the financial scenario of the business and
to their owners. This data is essential for the investors, suppliers, bankers and other financial
organizations. But the most significance of accounting data is associated to the individuals within
an organization (Peterson, Schmardebeck and Wilks 2015). It is known that every decision is
associated to a number of substitutes. Accounting information therefore assist the users to make
decisions in accordance to their course of actions.
The economy of United Kingdom is a developed one and therefore the use of accounting
information system is an extensive one, which has led to the development in the performance of
the companies (Grabinskia, Kedziora and Krasodomska 2014). The accounting information
system that has been used by the companies needs to assess the growth and the profitability of
the company and therefore assessment of the profitability is essential in order to have an
understanding of how the companies are able to develop their operational activities.
1.2 Problem Statement
In the current time period, most of the companies have been continuing to enhance the
expenses on the information system and the budget that is associated to the system has been
increasing. Furthermore, the economic scenario and the extent of competition generate pressures
regarding the information costs. In general, the information system is prepared by utilising
information technology in order to assist a person in performing their tasks (Fullerton et al.
2014). Hence, most of the companies ponder on improving the information system in order to
assist the process of decision making system, interactions, management of the knowledge and

11
RESEARCH METHOD
other as well. The significant part of the information system that is essential for the purpose of
undertaking decisions within a firm is known to the accounting information system.
Additionally, the human and global life has been altered from the age of information to
the age of knowledge and this knowledge has been ascertained to be the most valuable asset. In
fact, knowledge is not impersonal and therefore is not existent within a book or any software
program. Mithas and Rust (2016) had a belief that knowledge is always present in an individual.
Accounting information system is a technique that has unbiased nature for efficient management.
Ineffective accounting information system endangers the effectiveness of the management,
which makes the managers inefficient especially in the financial aspect of the organization
(Bertomeu, Darrough and Xue 2017). Therefore, this research has been undertaken in order to
provide extensive data in accordance to have knowledge of the profitability that is gained by the
banks with the help of the utilisation of accounting information system.
1.3 Research Aims and Objectives
In accordance to this research, the objectives of the thesis determine the aspects and the
elements with the help of which overall analysis in accordance to this topic can move forward.
The aims and the objectives of the paper has been explained as follows:
 Assess the nature of relationship among the accounting information system and the extent
of profit of the business enterprise
 Assess the features of accounting information system
 Determine the key influences of the accounting information process on the firm’s
profitability

12
RESEARCH METHOD
1.4 Research Question
The research question are the questions based on which the researcher would look into
the determinants in accordance to which the overall outcome of the thesis can be discovered. An
extensive understanding of the relationship among profitability and the accounting information
system of the companies in United Kingdom can be determined. The research questions in
accordance to this topic are given as follows:
Primary Question
Q1. What is the extent of relationship between accounting information system (AIS) and the
extent of profit for business concerns?
Secondary Question
Q2. What are the key characteristics of accounting information system?
Q3. What are the vital persuasions of system of accounting information on profitability of the
companies?
Q4. What is the extent of relationship that is existent among the profitability of the companies
and procedure of decision making of the companies?
1.5 Research Significance
The significance of the research ascertains the aspects and the factors that have motivated
the researcher to make use of this topic. The key intention of the thesis has been to assess
critically the effect of accounting information data in accordance to the profitability of the
companies. In this manner, the current thesis would endeavor to create knowledge of the nature
of relationship among the business profitability and the accounting information system. The

13
RESEARCH METHOD
existent research is considered to be justified and noteworthy as this can assist in critically
assessing the effect of accounting information system in accordance to the profitability of the
companies (Fountas et al. 2015). The paper comprehensively even looks to put stress on the
importance of this system related to accounting information in the process of undertaking
decisions. It is seen that there exists an uncertainty while predicting the process of increasing the
demand for accounting information system, which can transform the profit of an organization as
this process provides deliverance regarding a base to the companies in order to handle the
employees, vendors and the customers. It is even due to the fact that the companies have not
implemented the accounting information system in their day to day transactions can be assessed
and certain issues regarding the same can be highlighted.
1.6 Research Hypothesis
The hypotheses of constructed in accordance to the current thesis has been explained as
followed:
H0: Accounting information system does not have any kind of relationship with the profitability
of the companies
H1: Accounting information system has a relationship with the profit of the companies
1.7 Definition of the key terms
Accountant: They are the individuals who have a professional license to practice accountancy
from a renowned professional institution and possess the legal ability and the power to undertake
the duties of the accountants in the audit and the taxation practices.

14
RESEARCH METHOD
Financial Statement: It is known to be a formal record in accordance to the financial operations
of an entity or a business. It even provides the data in accordance to the performance and the
position of a company.
Accounting Information System: Accounting information system is a technique when
implemented in the information and technology field are constructed in order to assist the
management and the supervision of the topics associated to the economic and the financial aspect
of the companies.
Accounting Software: Accounting software is looked upon to be applications and the
accounting process transactions within the functional modules.
Profitability: Profitability addresses the ability to generate profits progressively for a longer
time period. Profit itself has various meanings to the various people. Profit is even sometimes
considered as a return that is accruing to the shareholders.

15
RESEARCH METHOD
Chapter 2: Literature Review
2.1 Introduction
The literature review of the paper has been constructed in order to have an idea about
what researchers previously have addressed on similar topics and what their point of view are in
accordance to accounting information system and how it has an effect on the profitability of the
companies. It is seen that several researchers have given out various kinds of ideas and
perspectives on this topic and therefore extensive knowledge and idea can be attained with the
assistance of which this thesis paper would move ahead and conclusion can be reached.
2.2 Accounting Information System
Accounting information system is regarded to be incorporated widely by the companies
that are operational in the private and the public sectors. Accounting information system within
the organizations tries to take care of the non-structured and structured financial and non-
financial data for the purpose of making decisions and the control of the management and the
extent of performance management as well.
The accounting information system is one of the management information system
elements. Even though there are many researchers who have agreed on the nature of the
relationship that is addressed among the two systems and some of them have belief that the
accounting information system is the foundation and the management data system. It is the part
of it and in some cases others debate that the accounting information process is a system that has
been independent for the management information process, but it is seen that the two systems
have been overlapping with each other.

16
RESEARCH METHOD
Kothari, Mizik and Roychowdhury (2015) explained that accounting information system
has been the source of the companies and the enterprises in the public and the private sectors to
handle the present situations. This is categorized by the vast change and the rise in the level of
competition at the international as well as the national level. The information assessment leads to
several benefits with the help of which they provide significant amount of information for all
societies of the information users. Khan, Serafeim and Yoon (2016) assess the association among
the utilization of the accounting information process by the companies and the performance
indicators of the companies. This assessment discovered that there exists a positive and
statistically vital association among the accounting information system and the literacy status of
the managers and discovered that as the number of employees has grown, the use of the
accounting information system has even increased. The study that was undertaken by Roberts
(2015) assessed the fact that effectiveness of the management and the cost control was utilized to
proxy the efficiency of the companies. It was found accounting information system develops the
management effectiveness and cost control by assisting the rational operational decisions. This
research has even discovered that accounting information system has essential effect on the
efficiency of the small and medium companies.
The main benefit of the extensive use of the accounting information system in a company
has been effective incorporation to the transforming environment, effective management of the
transactions that are of the arm’s length and increased degree of the competitiveness (Chenhall
and Moers 2015). There is even a development in the dynamic nature of the companies with
extensive flow of the data among the various degree of staff and the potentiality of the new
businesses that are within the network and enhanced external relationships for the companies.

17
RESEARCH METHOD
This is seen especially with the foreign customers who have made access with the help of the
website of the companies.
Initially in the year 1966, “The American Institute of Certified Public Accountants
(AICPA)” explained that accounting has been known to be the information process and to be
more effective, accounting has been known to be the practices of the common theories of the
data. This has been in the area of efficient fiscal operations and constitutes of a key section of the
data, which is disclosed in the quantitative manner.
The explanation that has been provided earlier addresses the fact that accounting is a part
of the common information process of the economic entity. Christensen, Nikolaev and
Wittenberg‐Moerman (2016) explains accounting information system as a process that operates
the role of the collection of the data, categorizing, categorizing and documenting the financial
scenarios with the goal of giving out precise data for the intention of record keeping,
consideration directing and the process making decisions.
There have been numerous researches that have been undertaken and these researches
have asserted the fact accounting information process has a proactive role to play in the process
of strategy management which acts as a process that assists the organizational process. The
strategies have been evaluated with the help of different kinds of typologies (Przychodzen and
Przychodzen 2015). Accounting information system has been utilized extensively in the
literature management. In the current paper, it is estimated that the performance of the company
is a role of the financial development, control of performance and the accounting information
process. There would be existence of fitness in the combination of the strategy and accounting
information system that contributes to the financial performance.

18
RESEARCH METHOD
In the current time period, most of the companies have been increasing their investment
on the accounting information system and therefore their budgets are increasing. Furthermore,
economic scenarios and the extent of competition generate pressures in relation to costs of the
information. In a general sense, accounting information system is created by utilizing
information technology in order to assist a company or any individual in performing their jobs in
a better manner (Aguilera et al. 2015). Hence, most of the companies concentrate on developing
information system in order to assist the decision making procedure, management of knowledge,
communication and various other aspects. The essential part of information system required for
the purpose of decision making for the companies is the accounting information system.
Accounting information system is regarded to be a tool that is unbiased for efficient
management and administration. The extent of poor level of accounting information system
endangers the efficiency level of the management and therefore makes the managers ineffective
in relation to administration. Francis et al. (2015) have cited on the fact that the organizations
have to learn to control and manage their intellectual assets in order to compete and survive in
the economy. It is known that management of knowledge is associated with the utilization and
development of the knowledge assets.
There have been several researches that have looked to assess the effect of accounting
information process on the quality of the financial reports. They have discovered that there exists
a healthy relationship among the exploitation of the accounting information process and on the
quality of the financial statements. Adam Cobb (2016) assessed the effect of accounting
information system on the task effectiveness of users. The results determine the fact that there
exists a significant level of impact of accounting information system in their efficiency level of
the tasks in association to auditing, financial documentation, budgeting and financial controlling

19
RESEARCH METHOD
in the organizations. While Appelbaum et al. (2017) detected a significant effect of accounting
information process on the performance of the companies, it was even found out that there exists
a brawny relationship among the success of accounting information process and the performance
of the companies. On the other hand, Galy and Sauceda (2014) discovered that accounting
information system develop the effectiveness of the companies especially in the technological
developments that have been taking place globally. Larivière et al. (2016) on the other hand
agrees with the other researchers as it has been discovered that accounting information system
even facilitates in the process of making decisions and rectify the structure, environment and the
requirement of the jobs. They even concentrate on the fact that accounting information plays an
essential role in the process of undertaking decisions that are associated to economic and
financial issues like price, cost accounting systems, profitability and management accounting
system. This provides effective information to the manager in order to undertake decisions that
are financial and economic in nature.
Furthermore, Bartov, Faurel and Mohanram (2017) found out that there exists a strong
relation among the organizational factors on the quality of the accounting information process
and how accounting information system have an effect on the quality of the financial statements.
Chen et al. (2018) discovered any companies are looking forward to enhance their level of
profitability and therefore accounting information system will be a essential element in order to
reach the aim of the company. They even explain the role of effective accounting information
process in enhancing the profitability target of the companies.
On the other hand, Yoon, Hoogduin and Zhang (2015) have discovered a key role of
accounting information system in the process of undertaking decisions. Müller, Riedl and
Sellhorn (2015) assessed how the incorporation of accounting information system develops the

20
RESEARCH METHOD
efficiency of the management and mitigated the cost of control on order to attain the goals of the
companies. Even though Maas, Schaltegger and Crutzen (2016), assesses the impact of
accounting information system on the internal auditors, the paper was able to disclose the key
role of accounting information system in the companies. This has been with respect to assisting
every level of the management in order to gain access to the comprehensive information that
goes within the planning and the management of the activities within the companies.
Furthermore, it is seen that accounting information system provides enhanced quality of data to
the external and the internal users. This looks to cover six main aspects and they are data, people,
software, internal controls and information technology model. Azeez (2015) examined the
impact of accounting information system on the development of the management and the overall
development of the companies. The outcome has discovered that accounting information system
have significant level of effect on the performance of the company as well as the management.
Hence, it can be cited that accounting information system is one of the most effective tools that
are used by most of the companies. This is done to improve their level of performance and even
assists the management of the companies in planning and constructing decisions that would be
helpful in the development of the operational activities as well.
2.3 Accounting Information System and Financial Performance
The accounting information system design is explained in accordance to the
characteristics of the information that it looks to provide. Rodger and George (2017) addressed
accounting information system in accordance to the perceived effectiveness of four attributes of
information and they have been named as timeliness, scope, extent of aggression and integration.
Scope is known to be the measures that have been utilized and to the development of the
accounting information system in space and time. The data could concentrate in the future versus

21
RESEARCH METHOD
the historical events and the internal and the external events. Dyreng and Markle (2016)
addressed that information can be quantified in the non-monetary and monetary terms.
Timeliness looks to address the frequency, the promptness of reporting and the information
orientation. Aggregation looks to explain the way the information is accumulated in the time
frames, roles or in relation to the decision structures. At the end, integration looks to explain the
desire of providing data in order to replicate the interaction and the harmonization impacts of the
numerous functions in the companies. These four elements have been assessed for making a
comparison of accounting information system and the strategies and the performance of the
companies. At the recent time period, it is seen that researches have started in order to assess
whether the companies vary systematically the accounting information system design assist their
strategy that has been selected. This helps in discovering that the accounting information system
has the prospect to assist strategy management and develop the company performance (Otley
2016).
Precise and suitable assessment among the construction of the accounting information
system and the development of the industrial units is essential. This is done by evaluating the
strategies addresses the fact that increased level of performance of the industrial deposits is
dependent in a broad range of accounting information systems (Nallareddy and Ogneva 2016).
There have been several researches that have tried to assess whether companies systematically
differentiates the accounting information design in order to assist their selected strategy. This
discovers that accounting information system has the ability to make possible strategy
management and improve the performance of the companies.
The current literature even try to offer slight proof of the relationship among these
accounting information system and the financial performance. Even though it is vital to address

22
RESEARCH METHOD
the researches that have been made by Adam Cobb (2016) which has discovered that a positive
relationship among the accounting information system design and the strategy of the companies
and their performance. The effective incorporation of accounting information system can save
the time and money of the shareholders. The data value that is created by accounting information
system to the stakeholders and the shareholders in undertaking decisions related to investment.
Financial managers require the financial and the accounting information that is provided
by the accounting information system in order to evaluate the previous performance of the
companies and in order to construct the plans for the future (Barton, Berns and Brooks 2014).
Hence, the organizational performance is assessed with respect to the “Return on Assets” and the
“Return on Equity” and these two ratios are considered to be the financial performance
measuring ratios.
In case the design of the accounting information process is connected with the financial
performance and the financial performance then it is connected with the performance of the
companies. This leads to a debate that the design of the accounting information system can be
estimated to have positive impacts in the performance of the companies with the help of return
on assets and the return on equity.
2.4 Accounting Information System and Performance Management
The current literature even provides limited proof of the association among the
accounting information system and the performance management. Accounting information
system is regarded to be the significant organizational process that is essential for the
effectiveness of the management of the decision and the control within the organization.
Accounting information system being one of the most essential processes in the company has
even transformed their way of processing, capturing, storing and the distribution of the data. In

23
RESEARCH METHOD
the current time period, more and more online and digital data is exploited in the accounting
information systems.
Performance management is inclusive of the operations that make sure that the aim of the
companies is sustainably being attained in an efficient way. Performance management can
concentrate in the company performance (Frey and Osborne 2017). Accounting systems have an
impact on the performance management and the attitude and have an impact among various other
departments and even in various nations.
Management is even busy with various kinds of operations which need effective quality
and dependable data. The quality of the data is one of the competitive edges for the companies.
In any kind of accounting data process, the quality of the data that is provided is authoritative to
the achievement of the process. Quality data that is created from the accounting information
system is a significant factor for the management. The organizations generally make use of the
accounting information systems in order to give out the assistance for the management decisions
(Ben‐Amar and McIlkenny 2015). The assistance is generally inclusive of the financial
assessment from the accountants of the companies. The assessment is generally obtained for the
accounting information system of the companies. The utilization of the business technologies in
this system can assess ample amount of documents digitally for the managers and the
management.
The management undertakes a comparison of the information about the present
performance to the budgets, estimates and benchmarks to assess the level to which the objectives
and the goals have been met and to recognize the unprecedented outcome or the unusual
scenarios that are in need of following up. In the same manner, the managers are accountable for
the recognition of the compliance and the financial risks for their activities. They even have the

24
RESEARCH METHOD
accountability for the construction, incorporation and supervising the internal control process.
Internal controls generally move around the accounting information system of the companies,
which has been the primary role for moving the financial data within the company (Lara, Osma
and Penalva 2016). Hence, internal controls assist the managers to measure and monitor the
efficiency of the accounting activities on the performance.
Performance management has a key role to play in the enhancement of the overall value
of the firms. Accounting systems are generally the most key formal sources of data in the
commercial companies. They are constructed to provide every extent of the management with
precise and timely data to have an impact on the performance management and to assist them to
undertake decisions that are in compliance with the aims of the companies (Giudice and Buti
2017). Organizational performance is one of the key constructs in the researches of the
management. Therefore, it is seen that the relationship among the accounting information system
and the organizational performance would be mediated by the performance.
2.5 Qualities of Good Accounting Information System
Accounting information system needs to be efficient and effective in order to provide
correct and consistent information over a distinct period of time. It is related with the process of
accounting information with the optimum utilization of the resources. An effective accounting
information system is helpful in providing data as and when needed required to the external and
the internal parties who are associated with the company. The information that is provided on
their part are precise and accurate as accounting information system make use of several
accounting software for the purpose of recording all the transactions. It complies with the
regulations and laws and even with the contracts to which the users evaluate their subject like the
external criteria and internal policies (Sassen 2016). An effective accounting information system

25
RESEARCH METHOD
maintains confidentiality of the data. It is focused on safeguarding the sensitive accounting
information from the disclosures that are unauthorized.
2.6 Profitability and decision making
The word “profitability” is known to be the capability to create profits in a progressive
manner over a long time period. Profit has been known to have different meanings for different
individuals. The term profit has several kinds of perceptions to the accountants, economists and
others. Profit in some of the cases has been considered to be return that is accruing to the
shareholders. For a common man, the word profit is known to be the revenue that comes to the
investor (Cassar, Ittner and Cavalluzzo 2015). For an accountant, profit is known to be the
income that is in excess of the revenue that is realized out of the cost of the operating and the
manufacturing expenses. In case of practical purposes, profit is known to be the business income
that is taken in the insinuation of the accountant. “Profitability” is known to be the realistic
measurement of the income from the funds that is invested in the companies. It is evaluated on
the basis of the market share which has been attained within a specific time period. Barth,
Landsman and Taylor (2017) explained that profitability is evaluated based on the sales return or
the profit margins which are utilized in the companies in order to determine the proportions of
profit on the income. The ratios of profitability are assistive for the future references and
construction of the budget and financial reports as well as it is supportive to the management in
the time of undertaking any kind of decisions.
The recording and processing of the data enables accounting information system to gain
the reports that helps the parties who are interested in their process of undertaking decisions.
Most of the accounting information technologies provide statistics that explain that the
performance of a service or a product. In order to enhance the utilization of financial data in the

26
RESEARCH METHOD
aspect of the making decisions, accounting information system is a very much effective tool. It
assists to assess the data and construct various kinds of alternatives (Chi et al. 2015). By taking
assistance of the data that is processed, the management can take proper decisions, which would
lead to the rise in the extent of profit of the companies. The incorporation of the enhanced
business system has enhanced the level of profitability and has even developed the cost control
in the companies (Chen et al. 2014). The documents that are disclosed by the business process
provide the information for the purpose of undertaking decisions very easily available.
2.7 Relationship between accounting information system and profitability
Accounting information system is very much effective for all the companies simply due
to the fact that it provides essential information in regards to how to plan and construct accounts
and accordingly can make essential changes whenever required (Benedettini, Neely and Swink
2015). The accounting operations of the businesses become very much simpler as these systems
provide accurate, faster and timely analysis and recording of the accounts and the financial
statements, which are constructed within the process. When any company has such systems, they
are able to receive error free and accurate accounting records and future forecasts for the growth
of the companies and maintain their level of profitability. These accounting information system
are mechanical and are error free system for the collection of the data and the data with respect to
the transactions that are taking place with the help of the automatic and electronic processes with
the collection of data and computer related errors (Saldanha, Mithas and Krishnan 2017). These
processes are going ahead automatically with the information of the transactions that are desired
and they are very much helpful in the reduction of the time with accurate and timely accounting
information. However, the completion of these systems are in need of huge and essential

27
RESEARCH METHOD
investments and the amount of time that is spend in order to attain the future profits from the
investment in order to purchase and incorporate these systems.
The conventional industrial economy asks the organizations to assess the components of
accounting; generally it assessed the historical costs and ascertain the extent of transactions that
have occurred in the past. In the process of accounting information, the process of measurement
has developed to a historical cost based value, replacement value, fair value and market value
(Henry and Leone 2015). The use of multi-measurement model is even done in order to
harmonize the other evaluation processes. The accounting information system replicates the
historical costs but by taking assistance of the present value factors it can address the “present
value”. In various other fields, the utilization of accounting value becomes the basis of historical
cost of accounting and reporting processes in order to evaluate the fair value of the other finance
related cost management processes (Goh et al. 2016). This has a direct association with the
extent of profitability.
In handling any company and the incorporation of the internal control process for
attaining increased level of profitability, accounting information system becomes essential. In the
area of accounting, one of the key questions has been the need of accounts. The common answer
has been to attain profit or loss of any business and to receive the data associated with the
business. Soto-Acosta, Popa and Palacios-Marqués (2016) addressed that an effective accounting
information system even assists the management in order to undertake various decisions
associated to the business. The five essential features of accounting information system has been
to undertake the processes, accounting information quality, assessment of the performance,
efficient internal management and address the day to day transactions of the business and these
aspects are very much essential for the smooth operational activities of a company.

28
RESEARCH METHOD
2.8 Effects of Accounting Information System on Profitability
One of the significant assumptions in the process of making decisions and the
development of the economy is the presence of timely and quality data and information. The
essential information comes from the accounting information systems and even from the
financial reports (Constantiou and Kallinikos 2015). Qualitative and qualitative features of
accounting information are inclusive of the relevance, consistency, comparability and the
timeliness of the process of making decisions, which is directly, associated to the decision
makers and their effects and this will ultimately have an impact on the extent of profit for the
companies (Melián-González and Bulchand-Gidumal 2016). This needs to be the actual
usefulness of the utilization of accounting information which is demanded in order to meet the
desires of the management and the decision makers. Under the scenario of the accounting
information, accounting information systems in the business management control layer, it is even
conductive to answer the common principles of accounting. It not only is the extensive quality of
the information but even verifies the assessment of the accounting components in the disclosure
of certain breakthroughs.
The development of the significance of the portfolio management estimated by the
financial evaluation of the new mission looks to lessen their link with the accounting models but
not with the accounting information. The other key developments of financial practices and the
theoretical researches have been to revive, renew and expand this link towards various new
dimensions (Indjejikian et al. 2014). On the other hand, the notional structures associated to
financial model, demands an assessment of the liabilities, its development and addressing the
cost of capital. The practical and the theoretical enhancement associated to funding is in need of
the utilization of the common accounting data. These have been the developments of the

29
RESEARCH METHOD
organizational finances, concentrating on the new issues, shift aims and the stakes of financial
evaluation steps in the direction that concentrates on information and thereafter open up bigger
prospect stakes associations among the financial evaluation and accounting (Khlif, Guidara and
Souissi 2015).
2.9 Summary of the literature
The literature has therefore looked to recognize the incorporation of the accounting
information system in the companies and how it has been useful for the development of the
operational activities of the firms. The literature has even addressed the relationship of
accounting information system with the financial performance of the companies and a direct and
positive relationship has been discovered. On the other hand, the evaluation that has been done
with performance management even addresses the fact that accounting information system has a
fundamental role to the development of the financial performance as well the performance
management of the companies.

30
RESEARCH METHOD
Chapter 3: Research Methodology
3.1 Introduction
The methodology in relation to this topic would provide the source and the kind of data
that would be used for undertaking the research as a whole. The methodology would therefore
address the source of the data along with the sort of data and information that would be used for
the purpose of evaluation process with the help of which the outcome of the paper can be
ascertained. The approach and the design that would be used for this research would even be
highlighted so that proper idea about the process and the guideline that has been followed in this
paper would be understood. The procedure that would be undertaken for the purpose of gathering
the data and the analysis plan and process would even be highlighted so that every aspect of the
collection process of the desired topic can be understood.
3.2 Justification of the selection of the methodology
Lewis (2015) highlighted the fact that there are two sorts of methodologies that are
generally used by when undertaking a research or an analysis. The two methodologies are
quantitative and qualitative research methodology. The selection of the methodology is reliant on
the discretion of the topic and the researcher. Before the selection of the methodology is done,
comparisons and evaluation of all the components is done with the help of which the
methodology that is ideal for the study can be understood. In this manner, in accordance to this
topic, qualitative research methodology would be taken into account as the research would be
based on the secondary data and this data would undergo various kinds of evaluations and
assessments. This would attain the end outcome for the topic can be discovered. The final
judgment would be on the basis of the data that has been gathered and the analysis that has been
done with the data. Qualitative methodology would be based on the interviews that would be

31
RESEARCH METHOD
taken from the managers of the selected companies that are making use of accounting
information system with the help of which relative and precise idea can be gained with the help
of which the data analysis process can be processed and thereby better results can be ascertained.
3.3 Research Philosophy
The research philosophy is linked to assurance, knowledge and the understanding of the
process and the system by taking help of the information that is associated with the topic. In this
manner, better research and analysis can be undertaken. Vaioleti (2016) have cited the fact that
there are generally three kinds of research philosophies that can be made use of and they are
known to be positivism, pragmatism and interpretivism philosophy. Positivism philosophy has
been chosen for this paper as the topic that is selected for this paper can be answered effectively
with the help of this philosophy. Positivism philosophy has been chosen as this topic would be
assessing and evaluating the information in relation to accounting information system and
explanations with regards to this system and the impact the system has on performance and
profitability of the companies would be known. This would be very much helpful in the
determination of a positive insight and hence a fruitful outcome can be attainable.
3.4 Research Approach
The research approach constitutes of the creation of an effective relationship among the
model, theories and framework that would be considered in order to gather accurate and valid
results. The result that would be ascertained with the help of the approach can even be useful for
the discovery of the results that can even be used for future references. Bauer (2014) explained
that there are two sorts of approaches that can be utilized and they are inductive approach and
deductive approach. Inductive approach refers to the construction of theory and frameworks that
are new and has been prepared in order to answer the topic of the research. This model and

32
RESEARCH METHOD
theories are new and therefore have never been used earlier. On the other hand, deductive
approach refers to the theories and models that have been constructed earlier for some other
researches and these models and theories can be used once again in order to complete the
research. In this paper, it is seen that deductive approach has been used. Deductive approach is
suitable for this paper simply due to the fact that the topic that would be analyzed is effect of
accounting information system on the performance and profitability of the companies and
therefore secondary data would be taken into consideration (Choy 2014). It is due to this fact that
models and theories that have been utilized in come previous researches have been used in order
to attain the desired results for this topic. It can be cited that inductive approach is not ideal for
this kind of topic.
3.5 Research Design
The research design is associated to the model and the framework that would be
constructed and ideally would be accepted in this research so that it would act as a guide for the
research in order to discover the actual outcome of the paper. Dang and Pheng (2015) explained
that there are three kinds of designs that are available to the researcher and it is seen that they are
known to be exploratory, descriptive and explanatory research design. The topic that has been
taken into consideration has the intention of answering the problems and the impact of
accounting information system on the performance and the profitability of the companies. It is
due to this fact that explanatory research design is selected for this paper as it would be look to
explain the cause and effect relationship among the two variables of the system and the
performance of the companies. The explanation of the cause and effect relationship would be
helpful in addressing the impact the accounting information system has on the performance of
the companies and therefore the outcome of the paper can be disclosed in an effective manner.

33
RESEARCH METHOD
3.6 Qualitative Data
In accordance to this topic, qualitative data has been taken into consideration mainly due
to the fact that the performance of accounting information system and its impact on the
performance of the companies and their profitability as well. Qualitative data is apt for this
research as in order to understand the impact accounting information system have on the
performance of the companies, interviews would be taken from the financial managers of the
five selected companies in order to ascertain their feedback with respect to the effect this system
have on the companies (Fletcher 2017).
3.7 Kind of Data Used
In relation to this topic, secondary data and primary data has been selected and therefore
data would be collected from several sources. Secondary data would be collected from several
articles and journals that have been published by various authors and researchers with the help of
which better results can be understood. Various internet websites would even be taken into
consideration with the help of which idea about accounting information system and their impact
on the performance of the companies would be understood in a better manner. However, primary
data has even been collected for this paper as feedback of the financial managers will even be
taken into consideration with the help of which an idea can be gathered where as to the impact of
accounting information system in the performance and the profitability of the companies. The
feedback of the managers would be collected with the help of an interview where they would be
asked questions related to the topic and accordingly their views can be gathered in order to
complete the collection process.

34
RESEARCH METHOD
3.8 Process of data collection
The collection of the data is the way with the help of which the analysis process can
move forward. The secondary data in relation to this topic would be collected with the help of
the articles, journals and reports that have been published in some earlier time period with the
help of which better and effective results can be ascertained. On the other hand, the primary data
from the researchers would be collected by taking assistance of the feedback of the financial
managers of selected companies. Their feedback and answers will be collected with the help of
interviews and therefore an interview questionnaire would be constructed and the questionnaire
would comprise of open ended questions with the help of which desired outcome can be attained.
3.9 Data Analysis Plan
The feedback that would be collected from the questionnaire would be assessed and
processed and thereby impact in relation to accounting information system with reference to the
performance of the companies and their profitability would be known. The secondary data that is
collected would undergo thematic analysis and thereby analysis process can be concussed and
certain results can be obtained.
3.10 Ethical Consideration
Ethics is a key aspect that needs to be considered by the researcher so that the data that
would be taken into consideration are collected from true and fair resources. It is seen that data
has been gathered from bona fide and accurate sources and therefore the results that would be
obtained would be fair and true (Dumay and Cai 2015). Hence, it can be stated that the rules and
the regulations that have been laid down by the national and the international bodies with respect
to ethics has been maintained in this research.

35
RESEARCH METHOD
Chapter 4: Data Analysis and Discussion
4.1 Introduction
This section of the paper will be the basis on which the overall result of the paper can be
understood. The analysis process would be done with the help of the interview that has been
done from the managers of the companies. The financial managers are the ones who take the
responsibility of the use of the accounting information system in their companies. The questions
that have been asked to the managers have been open ended ones and this would be helpful in the
creation of the idea with respect to the impact of the accounting information system on the
performance of the companies. It is seen that thematic analysis on the topic is even done in order
to have an understanding of the extent of profitability of the companies. The analysis is done
with the help of the financial managers of five companies who have been making use of the
accounting information system.
4.2 Interview Analysis
The interview questions that have been constructed have been asked to all the managers
and the five managers have answered all the questions and thereby better results can be
understood in an effective manner. Each of the questions has been analyzed individually with the
help of which the performance of the companies with respect to the incorporation of accounting
information system on the profitability of the companies can be understood.
The first question that has been asked to the managers has been the tenure the managers
have been working in the companies. It is seen that two managers have said that they have been
working in the company for more than two years and one of them has been working for more
than 7 years in the company. The other two managers have been working in the company only
for a year.

36
RESEARCH METHOD
The next question that is asked to the managers has been whether data storage has been
contributing to the development of the integrity of the financial reporting process. It is seen that
the one manager has been very reluctant in answering this question and therefore has said that he
is not aware of whether data storage has been contributing to the truthfulness of the financial
reporting process. He has explained the fact that financial reporting has improved with the help
of accounting information system but the extent of data storage is not known. The other four
managers on the other hand has expressed the fact that the extent of data storage has enhanced
with the incorporation of the accounting information system. It is seen that data is stored
automatically and therefore this lowers the time for the purpose of creation of the financial
statement of the companies. Hence, the answers of the managers explain the fact that data
storage has improved drastically.
The next question that has been asked to the managers has been that the data that is stored
is accurately and fairly reflects the asset of the company. The overall answer that has been found
states the fact that accounting information system collects the data that is accurate and fair and
therefore the financial statements that have been prepared has been able to properly highlight the
assets of the company. The managers have addressed the fact that accounting information system
has improved the operational activities of the company. The financial statements are prepared in
order to disclose the financial effectiveness of the company and clarity is created with respect to
the assets of the company with the help of the accounting information system.
The next question that is asked to the managers have been whether the data processing
method accounting information system is able to develop the quality of the financial statements
of the companies. This has been able to facilitate the process of transactions. The feedback
explains that two of the managers have said that the quality of the financial statements does not

37
RESEARCH METHOD
get altered with the use of accounting information system. The managers have explained the fact
that the quality of the financial statements have been proper before the incorporation of the
accounting information system. After the incorporation the extent of change in the financial
statements have remained the same. The amount of change that have been taken place is
minimum and therefore very less changes have been observed. On the other hand, the other three
managers have contradicted to the previous two managers. They have said that quality of the
financial statements have developed and improved with the incorporation of accounting
information system. One out of the three managers have addressed that their level of financial
performance has been very poor and their ineffective employees had been incompetent in
creating a better financial report. On the other hand, the incorporation of accounting information
system have reduced the work of the employees and with the help of the software the quality of
the reports have improved and the extent of errors in the financial statements have reduced. The
other two managers who are agreeing to the development of the quality of the financial
statements have said that their performance had been moderate prior to accounting information
system. But after accounting information system, the quality of the financial statements have
enhanced in an effective manner. The accounting information system has been very much
essential for providing clear and precise ideas about all the transactions that have taken place as
all the transactions are recorded according to the time and date when the transactions have been
taking place. It is done so that proper record is maintained and thereby falsification of
transactions can be avoided. Therefore, the overall assessment provides the fact that quality of
the financial statements have improved and better recording of the transactions are possible.
The next question that has been taken into consideration has been that whether automated
data collection process is able to speed up the preparation of the financial statements. It is seen

38
RESEARCH METHOD
that all the five managers have agreed to this question. All the managers have addressed the fact
that automation of the process of data collection has reduced the time of recording. Even
automation has been helpful in the reduction of the human errors that takes place when the
employees manually record the transactions and the data. The automation process automatically
posts all the transactions in the financial statements and eliminates any posts that are not required
in the financial statements. The managers have even explained the fact that automated data
process improves the financial statement of the companies and therefore it is seen that
accounting information system is a boost for the companies with respect to their financial
statements.
The next question that is asked to the managers has been whether accounting information
system is able to satisfy the various stakeholders of the company. One of the managers have
explained that their stakeholders have a conventional mindset and therefore are in the opinion
that incorporated of accounting information system deteriorates the overall performance of the
company as reduction in employee motivation has occurred. The incorporation of this system has
led to loss of jobs of many employees within the organization and therefore a part of the
employees are not able to give out their optimum best as they are afraid that their job would be at
risk as well. The stakeholders are looking for development of the company but are in the opinion
that the development should be done in such a manner so that all the associated members of the
company remain satisfied and are able to give out their best. Two other managers have not
answered this question properly as they have replied that they are not sure whether satisfaction
level of the stakeholders have developed. They have pointed out the fact that some of the
stakeholders are satisfied with the incorporation of the accounting information system but few of
the stakeholders have opposed to this process. They are in the opinion that this system has been

39
RESEARCH METHOD
helpful in the development of a better financial statement but has an impact on the other
departments. The expenses of the company gets increased with the incorporation of accounting
information system and therefore this lowers the profit of the company. The other two managers
have agreed to the point and they have strongly agreed to the fact that accounting information
system has been able to enhance the performance of the companies as well as satisfied the
stakeholders. The stakeholders have felt that accounting information system has been for the
good of the company and therefore the effectiveness of the company can be maintained.
The next question that has been asked to the managers has been whether the performance
of the company gets enhanced with the incorporation of the accounting information system. It is
seen that four out of the five managers have addressed the fact that performance of the
companies have developed with the incorporation of accounting information system. It is seen
that accounting information system looks into all the aspects of the companies with respect to
management accounting and cost accounting and in this manner is helpful in the improvement of
the company. The accounting information system detects all the activities and the errors that are
existent in the operational activities and accordingly creates plans and policies with the help of
which flawless statements can be disclosed. Only one of the five managers have disagreed to this
point and he has referred to the fact that performance of the company does not get enhanced but
on the other hand the expenses of the company gets developed.
The next question that has been taken into consideration has been whether inventory
management is possible with the help of accounting information system. The managers have
agreed to this point mainly due to the fact that maintenance of inventory management has been
an essential factor as inventory management keeps track of the resources that would be used for
the manufacturing purpose and use of accounting information system eliminates the chances of

40
RESEARCH METHOD
loss of inventory. The maintenance of inventory reduces the cost and the losses of the companies
and in this manner better performance and profitability is maintained. Accounting information
system records all the inventories within their software and thereby chances of loss gets lowered.
The extent of supervision of the inventory can therefore be minimized as a record is available
and thereby loss of inventory due to various factors gets reduced in an effective manner. Hence,
it can be said that inventory management is possible with the help of accounting information
system.
The next question that has been asked has been that whether accounting information
system has been helpful in the planning and constructing of strategies of the company. The
feedback has pointed out the fact that all the managers have remained neutral to this question as
they have asserted that accounting information system partially has an impact on the planning
and development of policies and decision making process. It is seen that accounting information
system mainly focuses on several aspects of the financial sector of the companies and therefore
is unable to look into other aspects of the operational activities. Accounting information system
is helpful to the management to construct plans and policies with respect to the financial part and
aspect of the company but becomes incompetent in the planning and processing of the other
aspects. Therefore assistance and help is required from various other aspects so that effective
plans and policies can be constructed that can be helpful in the development of the company on
an overall basis.
The next question that has been asked to the managers has been whether there are any
limitations to the accounting information system. All of the managers have agreed to the fact that
there are certain shortcomings for accounting information system. However, two of the managers
have expressed the fact that shortcomings of the company has been very low and therefore

41
RESEARCH METHOD
negligible to point out. The managers have expressed the fact that most common shortcoming of
accounting information system has been the complexity of the use of the software. This has been
the most common shortcoming for the company. The other shortcoming of the software has been
the cost of the software. Some of the companies have not been able to incorporate this software
as the price has been high. These shortcomings have not influenced all the companies to
incorporate the system.
The next question that has been asked is that whether accounting information system has
been used for cost, financial management accounting purpose. The feedback addresses the fact
that three managers have agreed to this proposition mainly due to the fact that accounting
information system has been helping all the aspects related to finance. Hence, the management is
confident as well as satisfied that financial sector of the company has been taken care of and
therefore they can take care of the other aspects in a better manner. The burden of the
management gets reduced with the use of accounting information system and thereby better
performance can be generated and thereby operational efficiency can be attained. Two of the
remaining managers have expressed the fact that management accounting and cost accounting
does not get effective assistance with the help of accounting information system. The managers
have expressed that they have to undertake various other activities in order to take care of the
cost and the management accounting processes.
The next question that has been taken into consideration has been whether accounting
information system is reliable and mixed reactions have been received. It is seen that three of the
managers have expressed their views that accounting information system is not reliable because
of the fact that there are certain flaws and shortcomings within the system. Therefore, they have
commented that accounting information system cannot be relied entirely. Certain percentage of

42
RESEARCH METHOD
the actions and the operations need to be undertaken manually with the help of which effective
activities can be maintained. On the other hand, the other two managers have replied that
accounting information system is reliable and the extent of reliability can be attained with the
help of proper and effective supervision. The managers have said that they have employees who
supervise the process and the system and therefore any errors in the process can be discovered
and amendments on the same are possible.
The next question was asked to the managers has been whether the accounting
information system is able to manage the fiscal affairs with the government bodies. All the
managers have agreed to the point simply due to the fact that accounting information system is
helpful in the creation of the financial statement of the companies and therefore all the actions
and transactions related to finance are completely jotted down. The fiscal and the transactions
related to tax are even evaluated which assists the companies to understand the amount of tax
they would have to pay to the government. In this manner the fiscal affairs of the company are
disclosed and this is helpful in the payment of the taxes and undertaking discussions with the
government bodies as well.
The next question that has been asked has been whether accounting information system is
easy to learn. Four managers have disagreed to this question and has said that the system is a
complex one and therefore the employees face difficulties to operate the system. The software is
not very easy to use and require training so that it can be used in an effective manner. The
remaining manager has pointed that accounting information system is very easy to learn and this
has been possible as they have employees who have knowledge on the use of the system and
therefore the system from the beginning has been used in an effective manner in the company.

43
RESEARCH METHOD
Therefore, an overall analysis explains that accounting information system is not very easy to
learn.
The last and the final question that has been asked is that how effective is accounting
information system lead to the development of the effectiveness of the companies. The results
have been positive as even though in many questions the managers have said that accounting
information system is not good for the companies but all the managers have agreed on the fact
that accounting information system leads to development of the operational activities of the
companies. It is seen that accounting information system improves the operational activities as
when the financial statements that have been prepared are flawless then information relation to
the assets and the liabilities have been disclosed and thereby all the information are easily
available and this can be used to understand the overall actions of the company and thereby the
faults and the errors that are existent in the company can be rectified and better performance can
be attained.
4.3 Discussion
The analysis that has been done for the interview questions that have been answered by
the managers expresses the fact that accounting information system on an overall basis expresses
the fact that is helpful for the companies. It has been very much effective in the development of
the financial activities of the company as well. The financial statements that have been
constructed with the help of the accounting information system have better quality and as the
data recorded in the accounting information system are with the help of an automated process. It
is seen that the time that is used is less. The workload of the employees gets lowered and thereby
their operational efficiency increases. The analysis therefore comes to the conclusion that
accounting information system helps in the development of the performance of the companies

44
RESEARCH METHOD
and even assists the profitability of the company as this process reduces the overall costs and the
risks that are related to the company and reduces the time as well with the help of which the
expenses get lowered and the extent of profit rises.
4.4 Thematic Analysis
4.4.1 Effects of Accounting Information on Profitability
One of the key assumptions in the process of decision making and the development of the
economy has been the presence of timely data and quality. The key information comes out with
the help of the accounting information systems and this is disclosed with the help of the financial
statements. The quantitative and the qualitative features of accounting information is inclusive of
the relevance, comparability, understandability, consistency, understandability and timeliness of
the process of undertaking a decision that is directly associated to the decision makers and their
outcomes and ultimately will have an impact on the profitability of the companies. This needs to
be the real effective accounting information that is essential in order to fulfil the needs of the of
the decision makers. Accounting explains the general requirement of accounting, reporting and
summarizing. Within the scenario of accounting information, accounting information systems in
the controlling layer of business control is more conductive to replicate the general principles of
accounting. It is not only of the extensive quality of accounting information but authorizes the
measurement of the accounting components in the disclosure of certain breakthroughs.
The rise in the significance of the portfolio management forecasted by the financial
evaluation of the new missions looks to relax their links to the accounting structure and not with
the accounting data. The other major improvements that have been seen in the financial practice
and methodological and theoretical research is likely to be bringing back renewed and extended
links in the new directions. On the one hand, the theoretical frameworks and operator elections

45
RESEARCH METHOD
associated to the financial framework is in need of an assessment of the liabilities their
development and addressing the cost of capital. The practical and the theoretical developments
associated to investing is in need of the utilization of the general accounting information. These
have been the developments of the organizational finances concentrating on the new issues, shift
in the objectives and stakes the financial assessment in a direction that focuses information and
opens up various prospects stake links among the financial assessment and accounting.
4.5 Summary of the results
The overall assessment of the results that have been determined in this section of the
paper explains the fact that there is a rise in the development of the operational activities and the
financial activities of the company with the help of accounting information system. It is seen that
there exists certain faults and errors that are existent within the system but these issues are
negligible. Therefore use of accounting information system is helpful in the development of the
financial activities. The interview analysis as well as thematic analysis has been able to explain
the fact that profitability increases with the help of accounting information system and thereby
the performance as well as the efficiency level of the companies are enhanced.

46
RESEARCH METHOD
Chapter 5: Conclusion, Recommendation and Future Work
5.1 Conclusion
The outcome that has been attained in the previous chapter has been helpful in the
development of the conclusion of the paper with the help of which the completion of the paper
would be done. The introduction of the paper has addressed how accounting information system
has developed and accordingly how accounting information system has been helping the
performance of the companies have been known. Accounting information system is a new
process and therefore this has gained significance as many of the companies have discovered that
this process enhances the performance and the construction of the financial statements. The
background of the paper has highlighted that accounting has been addressing the business
language and therefore has looked to record all the transactions of the company with the help of
the monetary values. The advent of the international economic situation has led to the
development of the information technology and developments in the production process with the
help of which customer satisfaction as well the development of the competition in the market.
The performance of accounting has been developing for various years and it is seen that with the
advent of technologies various new accounting mechanisms have developed. It is due to this fact
that accounting information system has been an effective one with the help of which all the
transactions can be recorded and accordingly the effective data recording process would lead to
the construction of financial statements with the help of which the performance and the
profitability of the companies can be attained. The problem statement that has been constructed
has been helpful in the understanding of the issues that would be discussed with the help of
which the analysis process can be undertaken. The research aims and objectives have been
constructed so that these aspects can be extensively discussed.

47
RESEARCH METHOD
The literature review of the paper has explained the aspects that have been explained by
the other authors and these aspects and variables have been discussed in an explicit manner in
order to attain some sort of idea that would be used for the purpose of analysis. The methodology
of the paper has highlighted the kind of data that has been used for the analysis purpose. It is
seen that secondary data and primary data has been used and therefore deductive approach has
been taken into consideration. The completion of the collection of the data leads to the
assessment of the data and the analysis is done with the help of interview analysis and thereby
responses of the financial managers has been taken into consideration and their answers have
been assessed in order to reach an overall result. The result that has been collected can be
certified only if the results are able to address the objectives that have been framed earlier in this
paper. Therefore, the objectives would be compared with the result in order to have an idea
whether the result is suitable for this paper.
5.2 Addressing the objectives
The first objective of the paper has been to create an understanding of the nature of
relationship among accounting information system and the extent of profitability. The result that
has been attained explains the fact that there exists a positive relationship among the accounting
information system and profitability of a company. It is seen that with the use of accounting
information system the profit of the companies have increased by a significant margin and this
has been useful for the companies. The use of accounting information system has reduced the
cost and time for the companies and therefore errors that were existent earlier has been
eliminated. Therefore, this objective has been explained with the help of the outcome.
The next objective of the paper has been assessing the features of accounting information
system. The result has been competent in answering this objective as well as it is seen that all the

48
RESEARCH METHOD
features of accounting information system with respect to the development of quality, error free
financial statements, reduction in time and workload, minimization of risk and rise in the level of
profitability and performance has been highlighted. The result has even addressed the fact that
the system has been able to perform management and cost accounting tasks with the help of
which the performance of the companies have developed as well. Hence, it is seen that the
features of accounting information system has been explained as well.
The last and the final objective of the paper have been ascertaining the key influences of
accounting information system on the profitability of the companies. It is seen that accounting
information has essential amount of influence of the performance and the profitability of the
companies as the use of accounting information system has reduced the cost of the companies as
well as the quality of the financial statements. Proper and effective disclosure of the financial
statements are helpful to the investors and the stakeholders to understand the actual position of
the companies and accordingly can undertake further investments. This leads to additional
capital for the companies and additionally increases the profit of the company as well. It can
therefore be said this objective has even been answered.
Therefore, it can be ascertained that the result that is attained has been able to answer all
the objectives and one can say that the results are true, fair and justified. This result is helpful in
the construction of recommendations with the help of which the use of accounting information
system can be improved.

49
RESEARCH METHOD
5.3 Recommendation
The recommendations that are provided in this paper have been possible with the
outcome that has been constructed. The use of these recommendations would lead to better use
of accounting information system.
It is recommended that the management should provide proper training for the use of
accounting information system so that the employees can have proper idea about the process of
using it and thereby better performance can be attained.
It is even recommended that the management assesses the market from time to time and
thereby understand the changes that are taking place in the accounting information system. This
lead to the implementation of the same with the help of which the companies can stay ahead of
their competitors.
It is even recommended that the companies should provide proper maintenance and
upgradation of the software so that the software remains updated and accordingly effective use of
the software is possible. The incorporation of these aspects would improve the operational
activities of the company.
5.4 Future Work
It is seen that future research on accounting information system on the profitability of the
companies are possible. It is due to the fact that performance and profitability would change with
time and accordingly the process of accounting information system would change as well.
Therefore, an assessment in the future course of time on the same topic would be helpful in
determining and comparing the future work with the current work in order to have an

50
RESEARCH METHOD
understanding of the alterations that have occurred and the degree of impact accounting
information system has on the profitability of the companies.

51
RESEARCH METHOD
Reference List
Adam Cobb, J., 2016. How firms shape income inequality: Stakeholder power, executive
decision making, and the structuring of employment relationships. Academy of Management
Review, 41(2), pp.324-348.
Aguilera, R.V., Desender, K., Bednar, M.K. and Lee, J.H., 2015. Connecting the dots: Bringing
external corporate governance into the corporate governance puzzle. The Academy of
Management Annals, 9(1), pp.483-573.
Appelbaum, D., Kogan, A., Vasarhelyi, M. and Yan, Z., 2017. Impact of business analytics and
enterprise systems on managerial accounting. International Journal of Accounting Information
Systems, 25, pp.29-44.
Azeez, A., 2015. Corporate governance and firm performance: evidence from Sri Lanka. Journal
of Finance, 3(1), pp.180-189.
Barth, M.E., Landsman, W.R. and Taylor, D.J., 2017. The JOBS Act and information uncertainty
in IPO firms. The Accounting Review, 92(6), pp.25-47.
Barton, J., Berns, G.S. and Brooks, A.M., 2014. The neuroscience behind the stock market's
reaction to corporate earnings news. The Accounting Review, 89(6), pp.1945-1977.
Bartov, E., Faurel, L. and Mohanram, P.S., 2017. Can Twitter help predict firm-level earnings
and stock returns?. The Accounting Review, 93(3), pp.25-57.
Bauer, G.R., 2014. Incorporating intersectionality theory into population health research
methodology: Challenges and the potential to advance health equity. Social science &
medicine, 110, pp.10-17.

52
RESEARCH METHOD
Ben‐Amar, W. and McIlkenny, P., 2015. Board effectiveness and the voluntary disclosure of
climate change information. Business Strategy and the Environment, 24(8), pp.704-719.
Benedettini, O., Neely, A. and Swink, M., 2015. Why do servitized firms fail? A risk-based
explanation. International Journal of Operations & Production Management, 35(6), pp.946-979.
Bertomeu, J., Darrough, M. and Xue, W., 2017. Optimal conservatism with earnings
manipulation. Contemporary Accounting Research, 34(1), pp.252-284.
Cassar, G., Ittner, C.D. and Cavalluzzo, K.S., 2015. Alternative information sources and
information asymmetry reduction: Evidence from small business debt. Journal of Accounting
and Economics, 59(2-3), pp.242-263.
Cassar, G., Ittner, C.D. and Cavalluzzo, K.S., 2015. Alternative information sources and
information asymmetry reduction: Evidence from small business debt. Journal of Accounting
and Economics, 59(2-3), pp.242-263.
Chen, C.W., Collins, D.W., Kravet, T.D. and Mergenthaler, R.D., 2018. Financial statement
comparability and the efficiency of acquisition decisions. Contemporary Accounting
Research, 35(1), pp.164-202.
Chen, Y., Wang, Y., Nevo, S., Jin, J., Wang, L. and Chow, W.S., 2014. IT capability and
organizational performance: the roles of business process agility and environmental
factors. European Journal of Information Systems, 23(3), pp.326-342.
Chenhall, R.H. and Moers, F., 2015. The role of innovation in the evolution of management
accounting and its integration into management control. Accounting, Organizations and
Society, 47, pp.1-13.

53
RESEARCH METHOD
Chi, C.W., Hung, K., Cheng, H.W. and Lieu, P.T., 2015. Family firms and earnings management
in Taiwan: Influence of corporate governance. International Review of Economics &
Finance, 36, pp.88-98.
Choy, L.T., 2014. The strengths and weaknesses of research methodology: Comparison and
complimentary between qualitative and quantitative approaches. IOSR Journal of Humanities
and Social Science, 19(4), pp.99-104.
Christensen, H.B., Nikolaev, V.V. and Wittenberg‐Moerman, R.E.G.I.N.A., 2016. Accounting
information in financial contracting: The incomplete contract theory perspective. Journal of
accounting research, 54(2), pp.397-435.
Constantiou, I.D. and Kallinikos, J., 2015. New games, new rules: big data and the changing
context of strategy. Journal of Information Technology, 30(1), pp.44-57.
Dang, G. and Pheng, L.S., 2015. Research methodology. In Infrastructure Investments in
Developing Economies (pp. 135-155). Springer, Singapore.
Dumay, J. and Cai, L., 2015. Using content analysis as a research methodology for investigating
intellectual capital disclosure: a critique. Journal of Intellectual Capital, 16(1), pp.121-155.
Dwivedi, Y.K., Wastell, D., Laumer, S., Henriksen, H.Z., Myers, M.D., Bunker, D., Elbanna, A.,
Ravishankar, M.N. and Srivastava, S.C., 2015. Research on information systems failures and
successes: Status update and future directions. Information Systems Frontiers, 17(1), pp.143-157.
Dyreng, S.D. and Markle, K.S., 2016. The effect of financial constraints on income shifting by
US multinationals. The Accounting Review, 91(6), pp.1601-1627.

54
RESEARCH METHOD
Fletcher, A.J., 2017. Applying critical realism in qualitative research: methodology meets
method. International Journal of Social Research Methodology, 20(2), pp.181-194.
Fountas, S., Carli, G., Sørensen, C.G., Tsiropoulos, Z., Cavalaris, C., Vatsanidou, A., Liakos, B.,
Canavari, M., Wiebensohn, J. and Tisserye, B., 2015. Farm management information systems:
Current situation and future perspectives. Computers and Electronics in Agriculture, 115, pp.40-
50.
Francis, B., Hasan, I., Park, J.C. and Wu, Q., 2015. Gender differences in financial reporting
decision making: Evidence from accounting conservatism. Contemporary Accounting
Research, 32(3), pp.1285-1318.
Frey, C.B. and Osborne, M.A., 2017. The future of employment: how susceptible are jobs to
computerisation?. Technological Forecasting and Social Change, 114, pp.254-280.
Fullerton, R.R., Kennedy, F.A. and Widener, S.K., 2014. Lean manufacturing and firm
performance: The incremental contribution of lean management accounting practices. Journal of
Operations Management, 32(7-8), pp.414-428.
Galy, E. and Sauceda, M.J., 2014. Post-implementation practices of ERP systems and their
relationship to financial performance. Information & Management, 51(3), pp.310-319.
Giudice, G. and Buti, M., 2017. Maastricht’s fiscal rules at ten: an assessment. In The Political
Economy of the European Constitution (pp. 33-58). Routledge.
Goh, B.W., Lee, J., Lim, C.Y. and Shevlin, T., 2016. The effect of corporate tax avoidance on
the cost of equity. The Accounting Review, 91(6), pp.1647-1670.

55
RESEARCH METHOD
Grabinskia, K., Kedziora, M. and Krasodomska, J., 2014. The Polish accounting system and
IFRS implementation process in the view of empirical research. Accounting and Management
Information Systems, 13(2), p.281.
Henry, E. and Leone, A.J., 2015. Measuring qualitative information in capital markets research:
Comparison of alternative methodologies to measure disclosure tone. The Accounting
Review, 91(1), pp.153-178.
Hribar, P., Kravet, T. and Wilson, R., 2014. A new measure of accounting quality. Review of
Accounting Studies, 19(1), pp.506-538.
Indjejikian, R.J., Matějka, M., Merchant, K.A. and Van der Stede, W.A., 2014. Earnings targets
and annual bonus incentives. The Accounting Review, 89(4), pp.1227-1258.
Khan, M., Serafeim, G. and Yoon, A., 2016. Corporate sustainability: First evidence on
materiality. The accounting review, 91(6), pp.1697-1724.
Khlif, H., Guidara, A. and Souissi, M., 2015. Corporate social and environmental disclosure and
corporate performance: evidence from South Africa and Morocco. Journal of Accounting in
Emerging Economies, 5(1), pp.51-69.
Kothari, S.P., Mizik, N. and Roychowdhury, S., 2015. Managing for the moment: The role of
earnings management via real activities versus accruals in SEO valuation. The Accounting
Review, 91(2), pp.559-586.
Lara, J.M.G., Osma, B.G. and Penalva, F., 2016. Accounting conservatism and firm investment
efficiency. Journal of Accounting and Economics, 61(1), pp.221-238.

56
RESEARCH METHOD
Larivière, B., Keiningham, T.L., Aksoy, L., Yalçin, A., Morgeson III, F.V. and Mithas, S., 2016.
Modeling heterogeneity in the satisfaction, loyalty intention, and shareholder value linkage: a
cross-industry analysis at the customer and firm levels. Journal of Marketing Research, 53(1),
pp.91-109.
Lawson, R.A., Blocher, E.J., Brewer, P.C., Morris, J.T., Stocks, K.D., Sorensen, J.E., Stout, D.E.
and Wouters, M.J., 2015. Thoughts on competency integration in accounting education. Issues in
Accounting Education, 30(3), pp.149-171.
Lewis, S., 2015. Qualitative inquiry and research design: Choosing among five
approaches. Health promotion practice, 16(4), pp.473-475.
Libby, R., 2017. Accounting and human information processing. In The Routledge Companion to
Behavioural Accounting Research (pp. 42-54). Routledge.
Maas, K., Schaltegger, S. and Crutzen, N., 2016. Integrating corporate sustainability assessment,
management accounting, control, and reporting. Journal of Cleaner Production, 136, pp.237-
248.
Marti, C.P., Rovira‐Val, M.R. and Drescher, L.G., 2015. Are firms that contribute to sustainable
development better financially?. Corporate Social Responsibility and Environmental
Management, 22(5), pp.305-319.
Melián-González, S. and Bulchand-Gidumal, J., 2016. A model that connects information
technology and hotel performance. Tourism Management, 53, pp.30-37.

57
RESEARCH METHOD
Mithas, S. and Rust, R.T., 2016. HOW INFORMATION TECHNOLOGY STRATEGY AND
INVESTMENTS INFLUENCE FIRM PERFORMANCE: CONJECTURE AND EMPIRICAL
EVIDENCE1. Mis Quarterly, 40(1).
Müller, M.A., Riedl, E.J. and Sellhorn, T., 2015. Recognition versus disclosure of fair
values. The Accounting Review, 90(6), pp.2411-2447.
Nallareddy, S. and Ogneva, M., 2016. Predicting restatements in macroeconomic indicators
using accounting information. The Accounting Review, 92(2), pp.151-182.
Nallareddy, S. and Ogneva, M., 2016. Predicting restatements in macroeconomic indicators
using accounting information. The Accounting Review, 92(2), pp.151-182.
Otley, D., 2016. The contingency theory of management accounting and control: 1980–
2014. Management accounting research, 31, pp.45-62.
Otley, D., 2016. The contingency theory of management accounting and control: 1980–
2014. Management accounting research, 31, pp.45-62.
Pérez-Méndez, J.A. and Machado-Cabezas, Á., 2015. Relationship between management
information systems and corporate performance. Revista de Contabilidad, 18(1), pp.32-43.
Peters, M.D., Wieder, B., Sutton, S.G. and Wakefield, J., 2016. Business intelligence systems
use in performance measurement capabilities: Implications for enhanced competitive
advantage. International Journal of Accounting Information Systems, 21, pp.1-17.
Peterson, K., Schmardebeck, R. and Wilks, T.J., 2015. The earnings quality and information
processing effects of accounting consistency. The accounting review, 90(6), pp.2483-2514.

58
RESEARCH METHOD
Przychodzen, J. and Przychodzen, W., 2015. Relationships between eco-innovation and financial
performance–evidence from publicly traded companies in Poland and Hungary. Journal of
Cleaner Production, 90, pp.253-263.
Roberts, M.R., 2015. The role of dynamic renegotiation and asymmetric information in financial
contracting. Journal of Financial Economics, 116(1), pp.61-81.
Rodger, J.A. and George, J.A., 2017. Triple bottom line accounting for optimizing natural gas
sustainability: A statistical linear programming fuzzy ILOWA optimized sustainment model
approach to reducing supply chain global cybersecurity vulnerability through information and
communications technology. Journal of cleaner production, 142, pp.1931-1949.
Saldanha, T.J., Mithas, S. and Krishnan, M.S., 2017. Leveraging Customer Involvement for
Fueling Innovation: The Role of Relational and Analytical Information Processing
Capabilities. MIS Quarterly, 41(1).
Sassen, S., 2016. The Global City: Strategic Site, New Frontier. In Managing Urban
Futures (pp. 89-104). Routledge.
Seethamraju, R., 2015. Adoption of software as a service (SaaS) enterprise resource planning
(ERP) systems in small and medium sized enterprises (SMEs). Information systems
frontiers, 17(3), pp.475-492.
Soto-Acosta, P., Popa, S. and Palacios-Marqués, D., 2016. E-business, organizational innovation
and firm performance in manufacturing SMEs: an empirical study in Spain. Technological and
Economic Development of Economy, 22(6), pp.885-904.

59
RESEARCH METHOD
Vaioleti, T.M., 2016. Talanoa research methodology: A developing position on Pacific
research. Waikato Journal of Education, 12(1).
Yoon, K., Hoogduin, L. and Zhang, L., 2015. Big Data as complementary audit
evidence. Accounting Horizons, 29(2), pp.431-438.

60
RESEARCH METHOD
Bibliography
Abdulrahman, M.D.A., Subramanian, N., Liu, C. and Shu, C., 2015. Viability of
remanufacturing practice: a strategic decision making framework for Chinese auto-parts
companies. Journal of Cleaner Production, 105, pp.311-323.
Al Daoud, K.A., Ismail, K.N.I.K. and Lode, N.A., 2014. The timeliness of financial reporting
among Jordanian companies: Do company and board characteristics, and audit opinion
matter?. Asian Social Science, 10(13), p.191.
Alshehhi, A., Nobanee, H. and Khare, N., 2018. The impact of sustainability practices on
corporate financial performance: Literature trends and future research
potential. Sustainability, 10(2), p.494.
Awan, A.G., Siddique, K. and Sarwar, G., 2014. The effect of economic value added on stock
return: Evidence from selected companies of Karachi stock exchange. Research Journal of
Finance and Accounting, 5(23), pp.140-152.
Baesens, B., Bapna, R., Marsden, J.R., Vanthienen, J. and Zhao, J.L., 2016.
TRANSFORMATIONAL ISSUES OF BIG DATA AND ANALYTICS IN NETWORKED
BUSINESS. MIS quarterly, 40(4).
Basuony, M.A. and Mohamed, E.K., 2014. Determinants of internet financial disclosure in GCC
countries. Asian Journal of Finance & Accounting, 6(1), pp.70-89.
Bracci, E., Humphrey, C., Moll, J. and Steccolini, I., 2015. Public sector accounting,
accountability and austerity: more than balancing the books?. Accounting, Auditing &
Accountability Journal, 28(6), pp.878-908.

61
RESEARCH METHOD
Burritt, R. and Schaltegger, S., 2014. Accounting towards sustainability in production and supply
chains. The British Accounting Review, 46(4), pp.327-343.
Bushee, B.J., Jung, M.J. and Miller, G.S., 2017. Do investors benefit from selective access to
management?. Journal of Financial Reporting, 2(1), pp.31-61.
Coates, J.C. and Srinivasan, S., 2014. SOX after ten years: A multidisciplinary
review. Accounting Horizons, 28(3), pp.627-671.
Demir, V. and Bahadir, O., 2014. An investigation of compliance with International Financial
Reporting Standards by listed companies in Turkey. Accounting and Management Information
Systems, 13(1), p.4.
Dwivedi, Y.K., Wastell, D., Laumer, S., Henriksen, H.Z., Myers, M.D., Bunker, D., Elbanna, A.,
Ravishankar, M.N. and Srivastava, S.C., 2015. Research on information systems failures and
successes: Status update and future directions. Information Systems Frontiers, 17(1), pp.143-157.
García-Álvarez, M.T., 2015. Analysis of the effects of ICTs in knowledge management and
innovation: The case of Zara Group. Computers in Human Behavior, 51, pp.994-1002.
Giannarakis, G., 2014. Corporate governance and financial characteristic effects on the extent of
corporate social responsibility disclosure. Social Responsibility Journal, 10(4), pp.569-590.
González, J.S. and García-Meca, E., 2014. Does corporate governance influence earnings
management in Latin American markets?. Journal of Business Ethics, 121(3), pp.419-440.
Gorla, N. and Somers, T.M., 2014. The impact of IT outsourcing on information systems
success. Information & Management, 51(3), pp.320-335.

62
RESEARCH METHOD
Grabner, I., 2014. Incentive system design in creativity-dependent firms. The Accounting
Review, 89(5), pp.1729-1750.
Greenaway, K.E., Chan, Y.E. and Crossler, R.E., 2015. Company information privacy
orientation: a conceptual framework. Information Systems Journal, 25(6), pp.579-606.
Grishunin, S. and Suloeva, S., 2015, August. Project controlling in telecommunication industry.
In Conference on Smart Spaces (pp. 573-584). Springer, Cham.
Guo, J., Huang, P., Zhang, Y. and Zhou, N., 2015. Foreign ownership and real earnings
management: Evidence from Japan. Journal of International Accounting Research, 14(2),
pp.185-213.
Haller, A. and van Staden, C., 2014. The value added statement–an appropriate instrument for
Integrated Reporting. Accounting, Auditing & Accountability Journal, 27(7), pp.1190-1216.
Haustein, E., Luther, R. and Schuster, P., 2014. Management control systems in innovation
companies: A literature based framework. Journal of Management Control, 24(4), pp.343-382.
Healy, P.M. and Serafeim, G., 2015. An analysis of firms' self-reported anticorruption
efforts. The Accounting Review, 91(2), pp.489-511.
Husin, M.A. and Ibrahim, M.D., 2014. The role of accounting services and impact on small
medium enterprises (SMEs) performance in manufacturing sector from East Coast Region of
Malaysia: A conceptual paper. Procedia-Social and Behavioral Sciences, 115, pp.54-67.
Jovetić, S., Ljubisavljević, S. and Karapavlović, N., 2018. Effects of Internal Control on the
Financial Indicators of Companies. Argumenta Oeconomica, (1 (40)), pp.115-146.

63
RESEARCH METHOD
Kaspereit, T. and Lopatta, K., 2016. The value relevance of SAM's corporate sustainability
ranking and GRI sustainability reporting in the E uropean stock markets. Business Ethics: A
European Review, 25(1), pp.1-24.
Khan, M., Serafeim, G. and Yoon, A., 2016. Corporate sustainability: First evidence on
materiality. The accounting review, 91(6), pp.1697-1724.
Khan, Q.M., Kauser, R. and Abbas, U., 2015. Impact of Bank Specific and Macroeconomic
Factors on Banks Profitability: A Study on Banking Sector of Pakistan. Journal of Accounting
and Finance in Emerging Economies, 1(2), pp.99-110.
Kristensen, T.B. and Israelsen, P., 2014. Performance effects of multiple control forms in a Lean
organization: A quantitative case study in a systems fit approach. Management Accounting
Research, 25(1), pp.45-62.
Kuzey, C., Uyar, A. and Delen, D., 2014. The impact of multinationality on firm value: A
comparative analysis of machine learning techniques. Decision Support Systems, 59, pp.127-142.
LaviaLópez, O. and Hiebl, M.R., 2014. Management accounting in small and medium-sized
enterprises: current knowledge and avenues for further research. Journal of Management
Accounting Research, 27(1), pp.81-119.
Lawson, R.A., Blocher, E.J., Brewer, P.C., Morris, J.T., Stocks, K.D., Sorensen, J.E., Stout, D.E.
and Wouters, M.J., 2015. Thoughts on competency integration in accounting education. Issues in
Accounting Education, 30(3), pp.149-171.
Lin, C., Tsai, H.L. and Wu, J.C., 2014. Collaboration strategy decision-making using the Miles
and Snow typology. Journal of Business Research, 67(9), pp.1979-1990.

64
RESEARCH METHOD
Liu, C., Luo, X.R., Sia, C.L., O'farrell, G. and Teo, H.H., 2014. The impact of XBRL adoption in
PR China. Decision Support Systems, 59, pp.242-249.
Maria Morariu, C., 2014. Intellectual capital performance in the case of Romanian public
companies. Journal of Intellectual Capital, 15(3), pp.392-410.
Maroun, W., 2015. Culture, profitability, non-financial reporting and a meta-analysis: Comments
and observations. Meditari Accountancy Research, 23(3), pp.322-330.
Mohammad, A.A., 2018. An exploration of accounting information system's role in SMEs failure
triangular. International Journal of Agile Systems and Management, 11(2), pp.155-178.
Mora, A. and Walker, M., 2015. The implications of research on accounting conservatism for
accounting standard setting. Accounting and Business Research, 45(5), pp.620-650.
Nallareddy, S. and Ogneva, M., 2016. Predicting restatements in macroeconomic indicators
using accounting information. The Accounting Review, 92(2), pp.151-182.
Ogbo, A.I. and Ukpere, W.I., 2014. The impact of effective inventory control management on
organisational performance: A study of 7up bottling company nile mile enugu,
nigeria. Mediterranean Journal of Social Sciences, 5(10), p.109.
Pizzini, M., Lin, S. and Ziegenfuss, D.E., 2014. The impact of internal audit function quality and
contribution on audit delay. Auditing: A Journal of Practice & Theory, 34(1), pp.25-58.
Poulfelt, F., Olson, T.H., Bhambri, A. and Greiner, L., 2017. The changing global consulting
industry. In Management Consulting Today and Tomorrow (pp. 5-36). Routledge.

65
RESEARCH METHOD
Pucheta‐Martínez, M.C. and García‐Meca, E., 2014. Institutional investors on boards and audit
committees and their effects on financial reporting quality. Corporate Governance: An
International Review, 22(4), pp.347-363.
Raßfeld, C., Behmer, F., Dürlich, M. and Jochem, R., 2015. Do quality costs still matter?. Total
Quality Management & Business Excellence, 26(9-10), pp.1071-1082.
Saka, C. and Oshika, T., 2014. Disclosure effects, carbon emissions and corporate
value. Sustainability Accounting, Management and Policy Journal, 5(1), pp.22-45.
Seth, M., Goyal, D.P. and Kiran, R., 2015. Development of a model for successful
implementation of supply chain management information system in Indian automotive
industry. Vision, 19(3), pp.248-262.
Song, H., Zhao, C. and Zeng, J., 2017. Can environmental management improve financial
performance: An empirical study of A-shares listed companies in China. Journal of cleaner
production, 141, pp.1051-1056.
Subramanian, N. and Gunasekaran, A., 2015. Cleaner supply-chain management practices for
twenty-first-century organizational competitiveness: Practice-performance framework and
research propositions. International Journal of Production Economics, 164, pp.216-233.
Tapscott, D. and Tapscott, A., 2017. How blockchain will change organizations. MIT Sloan
Management Review, 58(2), p.10.
Upadhaya, B., Munir, R. and Blount, Y., 2014. Association between performance measurement
systems and organisational effectiveness. International Journal of Operations & Production
Management, 34(7), pp.853-875.

66
RESEARCH METHOD
West, J. and Bhattacharya, M., 2016. Intelligent financial fraud detection: a comprehensive
review. Computers & security, 57, pp.47-66.
Wieczynska, M., 2015. The “big” consequences of IFRS: How and when does the adoption of
IFRS benefit global accounting firms?. The Accounting Review, 91(4), pp.1257-1283.

67
RESEARCH METHOD
Appendix
Interview Questions
Q1. How long have you been working in the company?
Q2. Do you think data storage contributes to the integrity of the financial reporting process?
Q3. Do you think that the data is adequate to fairly and accurately reflect the asset of the
company?
Q4. Has the data processing process improved the quality of the financial reports and facilitated
the process of the transactions for the companies?
Q5. Do you think the automated data collection process is able to speed up the construction of
the financial statements of the companies?
Q6. Do you think the accounting information system is able to satisfy the various groups of the
stakeholders for the companies?
Q7. Do you think the performance of the companies are enhanced with the help of the
incorporation of the accounting information system?
Q8. Do you think better inventory management is possible with the help of the accounting
information system?
Q9. Do you think the accounting information system has an essential role to play in the planning
of the strategies of the company?
Q10. Are there any shortcomings of accounting information system?
Q11. Is accounting information system used for cost, financial and management accounting?

68
RESEARCH METHOD
Q12. Is the accounting information system reliable?
Q13. Does accounting information system allow the company to manage their fiscal affairs with
the government bodies?
Q14. Is this system easy to learn?
Q15. How well does accounting information system lead to the development of the effectiveness
of the companies?