Effect of Accounting Information System on the Quality of Financial Reporting of Listed Companies in Non-Financial Sector in Nigeria

Abstract

The ability of the Accounting Information System (AIS) to produce Quality Financial Reporting (QFR) depends on various factors such as Information Quality (IQ), System Quality (SQ), Service Quality (SERVQ), and User Competency (UC). These factors have effect on and determine the QFR produced by the AIS. Hence, this study examines the effect of AIS on the QFR of listed companies in Nigeria non-financial sector. Cross-sectional survey research design was employed for the study. Primary data were collected through questionnaire. Structural Equation Modelling (SEM) was used to examine the effects of SQ, IQ, SERVQ and UC on QFR respectively. SEM results indicated that SQ (β=0.338,p=0.000<0.01), IQ (β=0.324,p=0.000<0.01), and UC (β=0.050,p=0.000<0.01) have significant and positive effects on QFR respectively while SERVQ (β=-0.626,p=0.038>0.01) has a negative and insignificant effect on QFR. The study recommends that firms should ensure their AIS is updated for new technologies that would enhance QFR and employ competent people who are also conversant with financial reporting standards to use the AIS and prepare financial reports.