Information Quality in Transactional Task Environment of the Accounting Processes

Abstract

In the accounting function, formal controls are applied to transactional and routinized processes with measurable outcomes. However, there is limited empirical evidence on the effectiveness of formal controls in transactional task environments such as accounting functions. In this study, we explore the effects of formal process and output controls on information quality, a crucial performance aspect, in the accounting process. Specifically, we show that process controls and a positive work environment both directly positively affect information quality while output controls and peer pressure do not. Further, we argue that formal controls can exert additional effects on formal controls, and can be effective solely in combination with certain formal controls. Moreover, we find that informal controls (i.e., positive work environments) can drive information quality if combined with a strong use of an identification-inducing work environment.