Impact of Accounting Information System on Effectiveness of Adventist Secondary School. Case Study of Gisenyi


Bachelor Thesis, 2020

65 Pages, Grade: 14.2


Excerpt

TABLE OF CONTENTS

ABSTRACT

DEDICATION

TABLE OF CONTENTS

LIST OF TABLES

LIST OF ABBREVIATIONS

ACKNOWLEDGEMENT

CHAPTER 1
INTRODUTION
Background of the Study
Statement of the Problem
Research Questions
Objectives of the Study
General Objective
Specific Objectives
Hypothesis
Significance of the Study
Justification of the Study
Conceptual Framework
Delimitation (scope) of Study
Limitations of the Study
Definition of Key Terms

CHAPTER 2
REVIEW OF RELATED LITERATURE AND STUDIES
Conceptual Review
Accounting Information System
Theoretical review
Contingency Theory
Activity Theory
Innovation Diffusion Theory
Empirical Review
Gap Analysis

CHAPTER 3
RESEARCH METHODOLOGY
Research Design
Population and Sampling Techniques
Population
Sample size
Sampling Techniques
Research Instrument
Data Gathering Procedures
Statistical Treatment of Data
Mean (M)
Coefficient of Variation (CV)
Multiple Regressions
Ethical Considerations

CHAPTER 4
PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS
Demographic Information of Respondents
Marital status of respondents at Gisenyi Adventist Secondary School
Age group of respondents at Gisenyi Adventist Secondary School
Experience of respondents at Gisenyi Adventist Secondary School
The Perceptions of Respondents on Accounting Information System
Perceptions of Respondents on Data Collection
Perceptions of Respondents on Data Processing
Perception on Data processing
Perceptions of Respondents on Information Production
Perception on Information Production
The Perceptions of Respondents on Effectiveness
Perception of respondents for School fees recovery
Perception of Respondents on School Fees Recovery
Perception of respondents for Timely financial statement
Perception of respondents on Accuracy of financial statements
Perception of Respondents on
Testing Hypotheses
Results for Hypothesis One
Results for Hypothesis Two
Results for Hypothesis Three

CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
Conclusion
Recommendations

REFERENCES

APPENDICES

ABSTRACT

The main objective of this study is to examine the impact of accounting information system on effectiveness of secondary schools specifically in Gisenyi Adventist Secondary School. The study was carried out in Gisenyi Adventist Secondary School and both descriptive and multiple regression were used in the course of the study. The sample size of 30 was obtained from known population where the researcher approached them with questionnaires and asked them randomly to answer the prepared questions. The data collected from the respondents were recorded and analyzed using SPSS version 20 and the results were interpreted through frequencies, mean, standard deviation and multiple regression. The statistical results show that all accounting information system sub- variables has positive and significant effect on all effectiveness of secondary school sub- variables. The final results indicate that there is a significant contribution of accounting information system on effectiveness of secondary school which was demonstrated by The F-test is 454.942 and is significant at 0.000 therefore it means that all accounting information system variables jointly have positive and significant effect on School fees recovery in Gisenyi Adventist Secondary School However; some weaknesses were found and the researcher has provided recommendations to Gisenyi Adventist Secondary School to train the users of accounting information system and other related activities which include data collection, data processing and information production in order to retain better effectiveness of secondary schools.

DEDICATION

To my beloved parents, To my beloved family, To my beloved friends

LIST OF TABLES

1. Interpretation of Scale

2.Interpretation of mean

3. Interpretation of the standard deviation

4. Gender of respondents at Gisenyi Adventist Secondary School

5. Marital status of respondents at Gisenyi Adventist Secondary School

6. Age group of respondents at Gisenyi Adventist Secondary School

7. Education level of respondents at Gisenyi Adventist Secondary School

8. Experience of respondents at Gisenyi Adventist Secondary School

9. Perception on data collection

10. Perception on Data processing

11. Perception on Information production

12. Perception of Respondents on School fees recovery

13. Perception of Respondents on Timely financial statement

14. Perception of Respondents on Accuracy of financial statements

15. Model Summary on School fees recovery

16. ANOVA on School fees recovery

17 .Coefficients on School fees recovery

18. Model Summary on Timely financial statement

19 . ANOVA on Timely financial statement

20. Coefficients on Timely financial statement

21. Model Summary on Accuracy of financial statements

22. Coefficients on reduction

LIST OF ABBREVIATIONS

Abbildung in dieser Leseprobe nicht enthalten

ACKNOWLEDGEMENT

This work would not have been elaborated without different kinds of support I got from different people during the course of this project.

My first and foremost thanks go to the Almighty God for giving me the strength, courage to pursue my studies and conducting this research study. I also thank my family for supporting me morally and spiritually during the whole period of my studies and during the research study. Their encouragement, advice and support enabled me to put in effort which enabled me to conclude the study successfully. My sincere gratitude goes to AUCA administration, staff, and lecturers for the knowledge, skills and instructions that they gave me. Without all of them, this study would have never succeeded.

I owe most profound thanks and recognition to my Supervisor, Mrs. MASENGESHO Josiane Esther for her criticism, invaluable patience, intellectual guidance and support helped me not only to accomplish this study, but also to come up with the expected standards. Sincerely, she deserves all kinds of credits.

Lastly, I am grateful to my friends and classmates for their social, educational, material support and advices during my time at AUCA.

Thanks you so much, may God bless you all!

CHAPTER 1

INTRODUTION

This Chapter introduces, the background of the study, statements of problem, research questions, objectives of the study, hypothesis, significance of study, justification, conceptual framework, limitation of the study and definition and key terms.

Background of the Study

School effectiveness refers to the extent to which schools are able to accomplish their pre-determined objectives. School effectiveness transcends beyond students passing final examinations (Ajayi, 2010 ).

According to (Oguntimehin, 2016) School effectiveness has become an area of major concern for educational research from the sixties onwards in the United States. These studies have tended to focus on secondary school effectiveness till 1980.

According to Van Damme, (2012), aim at studying a variety of effectiveness criteria. As in some other effectiveness studies they explicitly studied not only student achievement, but also non-cognitive outcomes. The technology and management in Dutch achievement was measured by means of curriculum relevant multiple choice tests at the start of the secondary school and at the end of the first, the second, and the fourth, and sixth grade.

In Nigeria, Secondary school education should be regarded as a strategy for effective and efficient social transformation at all fronts in independent African states. It must be understood that formal secondary education is primarily the most significant of all national investments. It is a knowledge production center, as skills production system, as a complex multi-layered system for social, political, cultural and economic development system. Further to this, the secondary school system is a formal institution vested with the responsibility of imparting and developing knowledge, skills and attitudes essential for individuals to fit into society and be able to contribute productively to its development (Kotirde, 2015).

In Kenya Accounting information-system is considered to be a computer-based structure, which joins accounting concepts and principles plus the model of information system to record, practice, examine and yield monetary info (Bukenya, 2014). If an organization fails to use computers and computer software it means that accounting Information may not be accurate and the organization may experience delays in financial reporting and lack of permanent accounting records and information. Computerization of departments increases coordination and cohesiveness therefore leading to attainment of the organization’s goals.

After the genocide in 1994, Rwanda education sector has passed through a challenging situation such as the loss of competent teachers and rehabilitating destroyed or defective infrastructure in some parts of the country. This includes the replacement of furniture, equipment and educational materials destroyed during the war and genocide, rehabilitation and strengthening of education in science and technology, as well as providing adequate supplies of textbooks and relevant educational material in schools. To cope with those challenges, after the genocide many reforms in education sector took place to raise the low students’ academic performance and to reshape education system which had broken down (Ministry of Education, 2006). The main challenging situation faced by policy-makers was the low students’ academic performance in secondary schools after the genocide. According to Ministry of Education (2012), the national average of the students’ performance in secondary schools in national examination between 2006 and 2010 was 60.8 % for ordinary level students who are selected for joining senior four classes or advanced level, and 82.3% for advanced level secondary students who are qualified to obtain certificates of senior six achievements (Ministry of Education, 2012).

For a better understanding of the AIS, three words of AIS are elaborated separately. The first is “Accounting,” which is a language of business, which records all the financial or monetary transactions (Naranjo, 2017). Second is “information,” which is the processed form of all financial transaction data used by decision makers. Lastly, according to (Saeidi, 2014) is “system,” which is an integrated entity that focuses on the set of objectives.

Statement of the Problem

Since the 1950s, when technology started to be applied in business (Otieno, 2013), most developing countries have moved away from the use of a pen and a paper and started adapt to the use of accounting software’s to facilitate the company performance. The Problem At most SDA schools there are many bookkeeping accounts for Agency or trust fund activity. Many of these accounts result from fund-raising or extra-curricular activities, but some of them result from school policies and billing practices. School accountants are sometimes unsure about which of these accounts should be recorded as liabilities and which should be recorded as income and net assets and this read schools to the poor performance. (SDA , 2011), from the above the research intents to investigate the impact of accounting information system on effectiveness of Gisenyi Adventist secondary schools.

Research Questions

The research questions are the hypothesis of choice that best states the objectives of the research study. It is a more specific management question that must be answered. It may be more than one question or just one (Iskandar, 2015).

1. Is there any impact of accounting information system on school fees recovery in Adventist secondary school specifically in G.A.S.S?
2. Is there impact of accounting information system on Timely financial statement in Adventist secondary school specifically in G.A.S.S?
3. What is the impact of accounting information system on Accuracy of financial statements in Adventist secondary school specifically in G.A.S.S?

Objectives of the Study

General Objective

The main objective of this study is to examine the impact of information accounting system on effectiveness of secondary schools specifically in Gisenyi Adventist Secondary School.

Specific Objectives

1. To identify the impact of information accounting system on school fees recovery in Gisenyi Adventist Secondary School.
2. To find out the impact of information accounting system on Timely financial statement in Gisenyi Adventist Secondary School.
3. To examine the impact of information accounting system on Accuracy financial statements in Gisenyi Adventist Secondary School.

Hypothesis

According to (Kothari C.R, 2014) Hypotheses are conjectural statement of relationships between two more variables. This research leads to this hypothesis:

H01: Accounting information system has no significant impact onschool fees recovery in Adventist secondary school.

H02: Accounting information system has no a significant impact on Timely financial statement in Adventist secondary school.

H03: Accounting information system has no a significant impact on Accuracy financial statements in Adventist secondary school.

Significance of the Study

This study is very crucial not only for the researcher but also to AUCA and G.A.S.S

To the researcher: it was important to the researcher as it was prerequisite for the award of Bachelor Degree of Business Administration (BBA) in Accounting. Furthermore, the study benefited the researcher to provide their knowledge of understanding how to solve problems through the research process.

To AUCA: The copies of this research report will be submitted to the library of AUCA so that students who will be interested to conduct further research.

To other researchers: they will use this research as a secondary resource of data in general and for those who will prefer Gisenyi Adventist secondary school as their research case study in particular.

To the G.A.S.S: The research results will help Gisenyi Adventist Secondary School management and others organizations to better satisfy its AIS, respond to their needs efficiently and on timely manners.

Justification of the Study

The accounting information system was recommended by the scholars and several agencies as a helpful tool in accounting field either for private or public institutions. Mostly in Africa there is still a lot of problems associated with it though many scholars have made several investigations give a lot of recommendations of how accountants should use accounting information system for having a good effectiveness in their institutions. The researcher found that there is still interest of doing several investigations in this field since there are problems associated to the accounting information system and effectiveness still arise such as for this case of secondary school in Rwanda Gisenyi Adventist secondary school is taken as case study.

Conceptual Framework

A conceptual framework allows the analyst to identify and understand its variables (Watts, 2010) Defines a conceptual frame work as the foundation on which the research project is based. A framework logically sets out and explains the relationship between those variables. (Khazanchi, 2013) States that a variable is anything that can take on varying values. Variables are properties or events or phenomena through a defined measurement system. The variables considered in empirical work may be divided as dependent and independent variables. For this study the dependent is Effectiveness and independent is Accounting information System.

Abbildung in dieser Leseprobe nicht enthalten

Source: Researcher (2020)

Delimitation (scope) of Study

This study is delimited in terms of geographical, time and content as discussed below:

Geographical scope: This research study investigates the impact of accounting information system on effectiveness of secondary school referring to Gisenyi Adventist Secondary School (G.A.S.S) a case study, located in Gisenyi Sector, Rubavu district of Gisenyi city.

Time scope: The investigation will cover a period of January and December 2020 as the researcher is a student pursuing a Bachelor’s degree of Business Administration department of accounting.

Social scope: As far as the content is concerned, this study focuses on the impact of accounting information system on effectiveness of secondary school Therefore the respondents were the members of G.A.S.S

Limitations of the Study

According to the study, the researcher found limitation or challenge during the data collection for the research. The researcher has been hindered by lack of

Sufficient finance the challenge of getting transport fees where the researcher have to move from Kigali city to Rubavu district far from where the researcher resides.

Definition of Key Terms

Data collection: is the process of gathering and measuring information on targeted variables in an established system, which then enables one to answer relevant questions and evaluate outcomes.

Data processing: is, generally, "the collection and manipulation of items of data to produce meaningful information." In this sense it can be considered a subset of information processing, "the change of information in any manner detectable by an observer.

Production Information System:Production information systemperforms an integrating role with in theproduction systemof any organization.

School fees: School Fees means the Fees and Levies charged to the Parent(s) by Investigator College Incorporated in exchange for the Services it performs

Timely financial statement: Timely financial reporting is not about just doing the same things as before, but more quickly. Rather, it is about reviewing the body's overall accounting and reporting arrangements and identifying new ways of working to meet earlier reporting deadlines

Accuracy of financial statements: Accuracy is the concept that a stated value in the accounting records fully reflects all of the supporting facts. When the concept is expanded to the financial statements, it means that the information in the statements is fully valued and that all necessary supporting information has been fully disclosed. In order to produce accurate financial information, the accountant cannot skew information based on overly optimistic or pessimistic views of the desired outcome.

CHAPTER 2

REVIEW OF RELATED LITERATURE AND STUDIES

This Chapter introduces review related literatures on accounting information system on the effectiveness of secondary school. Specifically, this part it will discuss on accounting information system with its Data collecting, Data processing, and Information production. It also reviews on effectiveness characterized by School fees recovery, Timely financial statement and Accuracy of financial statements. The next part is the discussion of the theories on accounting information system as independent variable of this study.

Conceptual Review

Accounting Information System

An accounting as an information system is a system of collecting, storing and processing financial and accounting data that are used by decision makers. An accounting information system is generally a computer-based method for tracking accounting activity in conjunction with information technology resources (Ponemon, 2012) an accounting information system is generally a computer-based method for tracking accounting activity in conjunction with information technology resources. The resulting financialreportscan be used internally by management or externally by other interested parties includinginvestors,creditorsand tax authorities. Accounting information systems are designed to support all accounting functions and activities includingauditing,financial accounting& reporting, managerial management accountingandtax. The most widely adopted accounting information systems are auditing and financial reporting modules. Accounting Information System is a software that a business uses in collecting, storing, and processing financial data that are used for decision-making.

According to (Wilkinson, 2014), is a computer based system that increases the control and enhances the cooperation within the firm. Management is engaged with various types of activities with different quality components. They require also non-financial information such as production statistics, quality of production, etc. However, quality of information generated from AIS is very important for management. (L, 2012)Argued that usage of AIS depends on the perception of the quality of information by the users. Generally the quality of information depends on the reliability, form of reporting, timeliness and relevance to the decisions. Effectiveness of AIS also depends on the perception of decision makers on the usefulness of information generated by the system to satisfy informational requires for operation processes, managerial reports, budgeting and control within the organization. Some studies indicate that the effectiveness of AIS depends on the quality of output information that satisfy the users, (Wilkinson J. W., 2016),AIS are considered essential organizational mechanisms that are necessary for effectiveness in decision management and control in organizations (Rahman, 2011).

AISs will be useful when information provided by them is applied effectively for decision making process by the users. (Ahmad., 2013) Argued that accounting systems are an important part of the fabric of organizational life and the have to be evaluated in their wider managerial, organizational and environmental context. Therefore, the effectiveness of AIS not only depends on the purposes of such systems but also depends on contingency factors of each organization. AIS are said to be effective when the information provided by them serves widely the system users’ needs. Effective systems should systematically provide information, which has the necessary potential effective on decision making process. The effectiveness of AISs has long been a subject of many researches (Anderson D. and Raun, 2011). Existing literature offers scant evidence of the relationship between these AIS and financial performance.

Recently, many studies have confirmed that AIS plays a proactive role in the strategy management, acting as a mechanism that empower organizational strategy (Zare, 2012) has been investigated using various typologies or The latter has been extensively implemented in management literature. There have been also several studies on the aspect of value relevance These decisions may include pricing, production levels and product mix, outsourcing, inventory policy, customer servicing, labor negotiations, and capital investments.

Accounting information systems play an important role in the implementation of the managerial functions of the organization such as planning and control (Fleming, 2012). In the planning function, AIS provide data relating to study and analyze the goals set for the organization. It also provide information regarding the relationship between cost, volume and profit required to determine the amount of interdependence and interaction between them. AIS under the planning function also helps in preparing lists of future needs and financial flows and planning of budgets for the development of quantitative criteria and converting them into financial standards to reflect the different aspects an organization's activities and presentation of the detailed plans and policies of the work and coordination across different departments (Tarmidi M, 2013).

The mission of the Information Systems Section of the American Accounting Association is to create and disseminate knowledge of accounting information systems and all aspects of information technologies as they relate to accounting by promoting excellence in research, teaching, and practice. The section encourages and supports new scholars and educators in the field.

Accounting Information Systems (AIS) are a tool which, when incorporated into the field of Information and Technology systems, are designed to help in the management and control of topics related to organization’ economic-financial area. But the stunning advance in technology has opened up the possibility of generating and using accounting information from a strategic viewpoint (Fleming, 2012).Accounting Information System (AIS) is vital to all organizations (Anderson D. and Raun, 2011).

On the other hand, an AIS is the whole of the related components that are put together to collect information, raw data or ordinary data and transform them into financial data for the purpose of reporting them to decision makers (LI, 2013)To better understand the term ‘Accounting Information System’, the three words constitute AIS would be elaborated separately. Firstly, literature documented that accounting could be identified into three components, namely information system, “language of business” and source of financial information (Anderson D. and Raun, 2011)Secondly, information is a valuable data processing that provides a basis for making decisions, taking action and fulfilling legal obligation. Finally, system is an integrated entity, where the framework is focused on a set of objectives.

Data Collecting

After accounting information has been input into the accounting system, it must be processed. Processing accounting data involves calculations, classification, summarization, and consolidation. In manual accounting systems, this processing occurs through the established manual methods and the recording, posting, and closing steps in the journals and ledgers. Automated processing can be accomplished by batch processing or online and real-time processing (Barbara, 2008).

Data Processing

According to oxford dictionary is the carrying out of operations on data, especially by a computer, to retrieve, transform, or classify information. Data processing is, generally, "the collection and manipulation of items of data to produce meaningful information." In this sense it can be considered a subset of information processing, "the change of information in any manner detectable by an observer. According to (Barbara, 2008) Data processing occurs when data is collected and translated into usable information. Usually performed by a data scientist or team of data scientists, it is important for data processing to be done correctly as not to negatively affect the end product, or data output. Data processing starts with data in its raw form and converts it into a more readable format (graphs, documents, etc.), giving it the form and context necessary to be interpreted by computers and utilized by employees throughout an organization. Data processingis theseriesof operations that arecarriedout on data,especiallyby computers, in order topresent,interpret, orobtaininformation (Deshmukh, 2016).

Information Production

According to (Belfo, 2013) is a network to generate necessaryinformationand process it to make various decisions related to someproduction system.

According to business dictionary the processes and methods used to transform tangible inputs (raw materials, semi-finished goods, subassemblies) and intangible inputs (ideas, information, knowledge) into goods or services. According to Business management information Production is some process through which goods and services are created. Production/Operations is the heart for an organization and add value to some object enhancing its usefulness. This is done by bringing men, machines and materials together as inputs to get the desired output.

Effectiveness

According to (Oguntimehin, 2011) EffectivenessThe degree to which objectives are achieved and the extent to which targeted problems are solved. In contrast to efficiency,effectivenessis determined without reference to costs and, whereas efficiency means "doing the thing right,"effectivenessmeans "doing the right thing.

In general, effectiveness the extent to which stated objectives are met — the policy achieves what it intended to achieve. Effectivenessis the extent to which an activity fulfils its intended purpose or function. Explanatory context. Analytical review (LI, 2013).

Effectiveness is the concept of how effective an organization is in achieving its goals. Every employee in a company contributes to organizational effectiveness. Taking into account skills, experience, motivation and rank, some employees play a bigger role than others. These are the people who contribute to the development of organization mainly with their knowledge (P, 2008). The purpose of Africa management is to enhance organizational effectiveness (Marivic, 2009).Management scholars generally agree that organizational effectiveness is multidimensional and is manifested in various perspectives (LI, 2013). Given the interconnectedness of formal and informal economies, the variety of African economic systems, and the diversity of the African management thought system (Ahmad., 2013).

School Fees

School Feesmeans the Fees and Levies charged to the Parent(s) by Investigator College Incorporated in exchange for the Services it performs, the money one must pay for an educational program. While the word may apply to any program, it is especially used in reference to private primary and secondaryschoolsand post-secondary education (Kristiansen, 2006).

Are fees charged by education institutions for instruction or other services? Besides public spending (by governments and other public bodies), private spending via tuition payments are the largest revenue sources for education institutions in some countries (Barr, 1993).

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Details

Title
Impact of Accounting Information System on Effectiveness of Adventist Secondary School. Case Study of Gisenyi
Course
Adventist University of Central Africa
Grade
14.2
Author
Year
2020
Pages
65
Catalog Number
V993501
ISBN (eBook)
9783346362049
ISBN (Book)
9783346362056
Language
English
Tags
impact, accounting, information, system, effectiveness, adventist, secondary, school, case, study, gisenyi
Quote paper
Eric Ndungutse (Author), 2020, Impact of Accounting Information System on Effectiveness of Adventist Secondary School. Case Study of Gisenyi, Munich, GRIN Verlag, https://www.grin.com/document/993501

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