CONTINUOUS QUALITY IMPROVEMENT OF FINANCIAL REPORTING USING TOTAL QUALITY MANAGEMENT (TQM)

Abstract

Total quality management (TQM) for state-owned companies is essential since it influences economic activity. Moreover, it represents a crucial part of improving the quality of financial reporting via greater control over information security, which concentrates on aspects that prevent the occurrence of high risks of deviations or manipulations. In addition to its efficiency, objectivity and activation of quality information can be transmitted. These communication procedures can be auto-enabled via information systems that save and share information among all parties by setting the process sequence. The processes will be codified on the transaction according to activation measures of inputs quality, commerce, and financial data outputs and then analyzed over accounting information. The control levels on the financial information technology environment applications are set to three classes: preventive control, detective control (diagnostic), and corrective power. As already mentioned, a suggested pattern was built which identifies the type of relationship between independent variables (requirements of total quality management) and the dependent (quality of financial reporting) where the comprehensive quality management (TQM) has been compatible with the quality of financial reporting.