ACCOUNTING INFORMATION SYSTEM, FINANCIAL DECENTRALIZATION AND QUALITY OF FINANCIAL REPORTING IN NIGERIA

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ACCOUNTING INFORMATION SYSTEM, FINANCIAL

DECENTRALIZATION AND QUALITY OF FINANCIAL REPORTING IN NIGERIA

ABSTRACT

The study examined the effect and relationship between Accounting information system, financial decentralization and quality of financial reporting in Kampala city council. The AIS and financial decentralization were the independent variables while quality of financial reporting was the dependent variable. The study adopted a triangulation design consisting of a correlation design which was quantitative in approach and cross sectional in nature. The study population consisted of two hundred ninety members from whom a sample of two hundred five elements was drawn using Krejcie and Morgan method. A combination of census, proportionate stratified random sampling and simple random sampling techniques were employed in selecting members from different strata into the study sample.

Two data collection methods namely structured questionnaire consisting of closed questions with five point likert scale and interview guide were used in collecting primary data. Out of two hundred five questionnaires administered, one hundred ninety registered returned posing a response rate of ninety seven percent. The collected data was presented using frequency tables and charts which were analyzed by Factor analysis, Pearson correlation coefficient and Regression model using SPSS.

A significant positive relationship was established between independent and dependent variable and forty five percent of the changes in quality of financial reporting in KCC are explained by the accounting information system and financial decentralization. The study also discovered that decision making, budgeting and planning constitutes fifty five percent of financial decentralization. However, decision making alone contributed forty one percent compared to fourteen and ten percent for budgeting and accounting information system respectively.

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