COMPUTERISED ACCOUNTING SYSTEM AND FINANCIAL REPORTING QUALITY OF DEPOSIT MONEY BANKS IN NIGERIA

Abstract

This study sought to examine the relationship between computerised accounting system and financial reporting quality of deposit money banks in Nigeria.  The aim of the study is to empirically investigate the likely effect of computerized accounting system on the quality of financial reports of deposit money banks in Nigeria; The population of the study include deposit money banks with main branches in Rivers State which amounted to twelve (12); since this population is relatively small, census sampling technique was adopted. Thus 120 copies of questionnaire which served as the research instrument was purposively distributed to each of the deposit money banks, making the total population of 120 respondents. The result showed that though computerised accounting system have a significant relationship with financial reporting (value relevance), its adoption has a positive relationship with the quality of financial reports of deposit money banks in Nigeria. The study recommends that Deposit money banks should endeavour to assign the administration of their computerized accounting systems to dedicated personnel who are not involved in the routine accounting function to ensure that the systems are effectively managed and that internal controls features are effectively implemented. This practice would also ensure that the systems are effectively managed and regularly maintained for optimal performance. When the systems are performing efficiently, the production of high-quality financial information could be guaranteed.