Influence of Accounting Information Systems (AIS) on Financial Reporting Accuracy

Abstract

Purpose: The aim of the study was to assess the influence of accounting information systems (AIS) on financial reporting accuracy. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: Accounting Information Systems (AIS) have a substantial positive impact on financial reporting accuracy through error reduction, data integrity assurance, consistency enforcement, audit trail provision, and facilitating timely reporting, ultimately leading to more reliable financial statements. Implications to Theory, Practice and Policy: Agency theory, information economics theory and structuration theory may be use to anchor future studies on assessing the influence of accounting information systems (AIS) on financial reporting accuracy. Research should explore the potential synergy between different advanced AIS technologies, such as AI and blockchain, to better understand how their combined use can enhance financial reporting accuracy. Organizations, especially in industries like healthcare, should consider investing in AIS automation to reduce reporting errors and improve financial reporting accuracy.