IMPACT OF INTERNAL CONTROL SYSTEM IN A COMPUTERIZED ACCOUNTING ENVIRONMENT

Abstract

The objective of the study was to explore the impact of internal control systems in a computerized accounting environment. The study stated four objectives which gave four hypotheses to be considered. To test these hypotheses, data was used and it was analyzed using descriptive analysis, and the chi-square test. The data used for this analysis was derived from the responses of 50 respondents in the questionnaire distributed. The findings showed that technological advancement has a significant impact on the efficiency and effectiveness of internal control system in a computerized environment. Organizational culture and management play a significant role in the effectiveness of internal control systems in a computerized environment. Regulatory requirements and industry standards have a significant influence on the design and implementation of internal control in a computerized environment. Regulatory changes and updates have significant effect on the design and implementation of internal control in a computerized environment. The study recommends management of firms to improve the level of technology in their firms to enhance the efficiency and effectiveness of the internal control system. Also, firm staff should be educated about the benefits of organization culture.