Effect of Management Information System on Quality of Financial Reporting: A Case of the Institute of Accountancy Arusha, Tanzania

Abstract

This study sought to establish the relationship between financial management information system and the quality of financial reporting at the Institute of Accountancy Arusha, using the descriptive design. Data was analyzed through descriptive statistics and Pearson Correlation. The study established that the management information system operates well at the Institute as financial statements are prepared based on required standards. As a result, there is a significant positive relationship between the Management Information System and the quality of financial reporting. This means that management information system enhances the quality of financial reporting. The study therefore recommends that the institute should make effort to maintain the effective management information system as such is very important for not only financial reporting but also for other operations in the learning institution.