Académique Documents
Professionnel Documents
Culture Documents
INTRODUCTION
In the past, many businesses maintained their records manually in books (Journal, Cash
Book, Special Purpose Books, and Ledgers) (Dacosta, 2012). This method of keeping records
was slow and prone to human errors of translation. However, due to the small volume of
accounting data, accountants found it quite manageable using the manual system.
As modern technology took place, it is set into the usage of computer, this technology is
the application for gathering, recording, processing and communicating business information by
the means of electronic media. In spite of the benefits of computer to the accounting industry and
businesses in general, some problems are still unsolved like the usage of computer in keeping
accounting records and the securities of the business transactions to hacking (Ware, 2015).
profession must deal with the new issues in the society. Every business has numerous processes;
some simple, others complex but as the business grows, it acquires new customers, enters new
markets and keeps pace with constant changes in information technology, companies need to
maintain highly accurate and up-to-date accounting, inventory and legal records. Thus, the
organizations in general and the banks in particular, should be more aware of the possible
security risks that threaten the security of its systems and the efficiency of its use. To avoid these
risks and reduce its negative effects, this study dealt with the effectiveness of computer
1
B. STATEMENT OF THE PROBLEM
The purpose of this study was to find the effects of computer technology on accounting
accounting?
hacking?
broaden their knowledge about the importance of technologies on accounting industry and how
technology will expand their understandings about accounting process. It can also be a basis of
how they can even improve accounting technology by doing another study related to this. This
The communication of school and teacher will be rapid because of the new perspective
about the accounting process. The school can use the new system to lessen the process regarding
the teacher’s salary. They can use new applications or software to lessen the time consumed in
transactions between the teachers and the school accountant. Teachers may use accounts that are
2
manipulated by the government, for the security and personal info’s. Through this process the
Accountants can use the study for improving the accounting technology by applying new
and improved technology systems. Doing those new perspectives, future systems of accounting
This study covered the effects of computerized accounting system on the performance of
accounting industry at Roxas, Isabela. The research focused on Accountants specifically those
who work at Roxas, Isabela. The handling of survey excluded places beyond Roxas, Isabela.
The study was limited on the positive effects of computerized accounting process only.
E. DEFINITION OF TERMS
Effect
It is a change (from manual to computerized accounting systems) that results when something is
Computer Technology
It deals with the use of computer software in performing one’s work quickly (IAC Publishing,
2017).
Accounting Technology
Organization, 2003).
Roxas, Isabela
It belongs to 2nd Congressional District of Isabela with 26 barangays and classified as second-
3
CHAPTER II
This chapter presents the review of related literature and studies taken by the researchers.
A. RELATED LITERATURE
1. Accounting System
Hussey (2005) defines accounting system as the system designed to record the accounting
transaction and events of a business in a way that complies with its policies and procedures.
Manual system of accounting is a system, which uses special journals to stream line the
journalizing and posting procedures. To handle a large volume of transaction rapidly and
effectively, it is helpful to group the transactions into classes and to use a specialized journal for
each. Recording and posting business transactions on these journals using the double entry
record keeping (Ama, Simplified Financial Accounting , 2004). Tanenbaum (2010) states that
manual processing of accounting data is too slow, and labour intensive in the banking industry.
2. Accounting Technology
In relation with the problem of slow manual process in accounting, the advancements in
information technology have been introduced and eventually led to the introduction of
Computerised Accounting Systems in corporate reporting to help produce relevant and faithful
representative financial reports for both management and external users (Bhorka, 2005). A
computer – based accounting system processes data in the same manner, as does a manual
system. Transactions are manually recorded on sources documents, the data from these source
documents are then key – punched into punched cards, which can be read by the computer
(Ama, 2003). According to Leary (2001) computers are electronic devices that can follow
instructions to accept input, process that input, and produce information. Once a slow-paced and
4
conservative industry, public accounting underwent on its environment (Akpan, 1998). Another
resources (e.g., networks, servers, storage, applications, and services) to achieve coherence and
gives the highest interest to how to maximize the effectiveness of utilization of the shared
3. Computer Technology
computer technology has been developing to be a tool in efficient and accurate accounting
processes. According to Vermatt and Shelly (2011), society has reaped many benefits from using
computers. Both business and home users can make well – informed decisions because they have
instant access to information from anywhere in the world. Benefits from using computers are
possible because computers have the advantages of speed, reliability, consistency, storage and
communication. The many advantages from the use of these systems have led many to conclude
(French, 1996). Computerized accounting systems provides a means for those firms to record,
very high volume of transaction with great speed and prepare a wide range of detailed financial
reports. It affects strongly on the accounting work and on the performance of banking industry
the computers can handle the recording process able to spend more time analyzing, planning and
controlling financial operations for management, this can provide a greater amount of systematic
Moreover, with the greater possibility of an accurate, quicker and timely related
accounting processes there is still problem that elevate in the usage of computer technology and
5
that is the security of business transactions. According to Stallings (2010), the problem of
computerized accounting system comes with the need to protect against data loss through power
failure or views and the danger of hackers stealing data. Computer fraud is also a concern for
who has access to the information particularly customer information. If there a security breach
and data is stolen management can be held personally liable for the loss of data has been
correctly entered into the system as a mistake in data entry can throw off a whole set of data.
Computerized system is the easy of backup of a computerized system. All transactions can be
saved and backed up in case of fire or other mishap. You cannot do this with paper records,
unless you make copies of all pages – long and inefficient process.
B. RELATED STUDIES
1. Accounting System
A study revealed that manual accounting implies that employees perform the whole
accounting cycle manually on a periodic basis: they calculate trial balances, journalize
transactions, and prepare financial statement reports and other routines. It takes much time,
resources and effort in large organizations. The most common problem encountered by manual
accounting system users is that the data appear to be time consuming and it is prone to human
2. Accounting Technology
The slow process regarding the manual accounting system brought the innovation in the
information technology industry. Information technology advancements have greatly helped the
information systems, business performance seems to improve. Many transaction processes were
simplified thus creating efficient operations. The affordability of computer technology for small
6
business entities creates great opportunities for these entities to improve their business (Yadav,
2016). Transactions are quickly posted to the appropriate accounts, by passing the journalizing
process; detailed listings of transactions can be printed for review anytime; internal controls and
edit checks can be used to prevent and detect errors and; a wide variety of reports can be
prepared. Data Based System captures both financial and non-financial data, and then it stores
that information in the data warehouse. The advantages of this system include recognition of
business rather than just accounting events; the support in the reduction in operating
3. Computer Technology
technology regarding a quicker and less error transactions has been resolved by the development
of computer technology. A study discovered that computer hardware system became the safe
operation of the computerized accounting system. Hardware system includes hard disk storage
equipment damage, such as computer processor failure and power failure (He, 2011). Also a
study conducted by Ware (2015) stated that Computerized Accounting System known as
Electronic Data Processing (EDP) allows the user to enter the transaction into the program once
and all accounts updated as necessary. It is also a specialized machine system use in gathering
information. It provides information for decision-making functions. It has been of great benefits
not only in banks but also to all manner of firms and organizations. Computerized accounting
system has helped in facilitating the provision of timely, quick customer service delivery,
accurate and reliable information, required by the banks, other firms and organizations.
7
4. Security in the Accounting-Tech Processes
financial reports was accompanied by the exposure to multiple important risks regarding the
security and safety of the computerized accounting information systems. Another study found
that computerized accounting systems was not accompanied with similar development in the
practices and control disciplines which intern creates a type of risk affects the suitability,
reliability, content safety and the integration and confidentially of the accounting systems which
may lead to damage caused essential losses to the bank (Zweilf, 2009) . A study found that
factors such as accidental entry of bad data by employees, accidental destruction of data by
to information systems and unauthorized documents visibility via display on monitors and
hardcopy documents are the most significant security threats to computerized accounting
C. SYNTHESIS
through the years. It created new opportunities for business innovations and quicker transactions.
Although this study is similar or related to other studies in terms of the topic relation, our
especially on protecting the important documents, particularly the accounting industry here at
Roxas, Isabela.
8
CHAPTER III
METHODOLOGY
This chapter presents the methods, technique, design and model taken by the researchers.
The original plan was to gather reliable data on at least 100 accountants. Unfortunately,
the standard number of respondents was not achieved, so the researchers decided to survey the
entire population of accountants, which was composed of 18 accountants, who are working on
B. RESEARCH DESIGN
This research follows the quantitative survey in terms of gathering, analyzing and
summarizing reliable data about the effects of computer technology on accounting technology of
Roxas. The researcher presented a brief description of computer technology in regards with its
effects on accounting. The researchers made a questionnaire that was answered by the
respondents. The data gathered were analyzed and summarized based on the perceptions of the
C. IPO MODEL
FEEDBACK
INPUT PROCESS OUTPUT
9
CHAPTER IV
This chapter presents the analysis and interpretation of data gathered by the researchers.
The figure above mentioned further implies that the respondents may not commit errors
most of the time because of their mastery with the work. It can also be that the errors they
commit do not really affect the financial statements. Similarly, no one answered that they never
In connection with the times accountants commit errors, the researchers also included
what part of accounting process is prone to errors. Based on the data assessed, the highest
frequency in the part of accounting process prone to errors was posting. The mean average of the
data is 2.7, which falls between posting and trial balance. The median is 3, that is equivalent to
10
Closing 1 5%
Post-Closing Trial Balance 1 5%
19 100%
n = 7
Above table further implies that majority of the respondents were considering posting of
transactions as the part of accounting that is prone to errors because in journalizing errors are not
clearly seen but when the transactions are posted in T-accounts errors where clearly recognize
already. If the total assets are not equal to the total liabilities and owner’s equity then errors
performing computerized accounting system while 19% used e-spreadsheet and 11% of the
The figure above mentioned further implies that the majority of respondents used
Microsoft Excel maybe because it is the only accounting software that was available in their
organization. It is possible also to conclude that the expertise of the accountant is only limited to
11
With the usage of accounting software in terms of preparing financial statements, the
research further looked into its improvements in accounting industry. Based on the data assessed,
46 % of the respondents stated that timely delivery of financial statements was the most valuable
improvement that computerized accounting system has done to the industry. Next is the
provision of error-free financial statements with 36% then creation of other opportunities to
In addition, figure 3 indicates that timely delivery of financial statements is the most
valuable improvement in the industry as computerized accounting system evolves because doing
that can boost the bank accuracy in terms of transactions. Provision of error free financial
statements is another way of gaining client’s trust so most of the banks are engaging their
through cellular or any technological based equipment that can lessen the time consumed by the
the research further dealt with the quickness of the software. Based on the data gathered, most of
the respondents strongly agreed that computer technology improves the speed in terms of
processing information and financial reports of a bank. The mean averages of the data falls
between agree and strongly agree while the median is equivalent strongly agree. The data also
table above further explains that majority of the respondents strongly agrees that computer
technology improves the speed of the information because accountants can just enter the
transactions and then the computer will organize it to the destined folder of the client.
Table 2.2: Computerization helps quick customer service, decision-making process and
accountability of customer
Based on the data gathered, 10 of the respondents agree that computerization helps quick
customer service, decision-making process and accountability of customer. The mean of the
frequency is 3.6 that falls on agree while the median is 8 and the mode is 10.
The table above implies that computerization really helps in terms of customer service
because face-to-face communication between clients and accountants can be done through video
Table 2.3: Computerized Accounting Systems lessened the amount of time needed to close out
Based on the data assessed, 12 of the respondents strongly agree that computerized
accounting systems lessened the amount of time needed to close out each accounting period.
Both of the mean and median falls on agree while the mode and range falls on strongly agree.
13
3 ci f mean median mode range %
strongly agreee 4.1 - 5 12 3.6 6 12 12 67%
agree 3.1 - 4 6 33%
strongly disagree 2.1 - 3 0 0%
disagree 1.1 - 2 0 0%
undecided .1 - 1 0 0%
n = 5 18 100%
The table above mentioned explains that accounting systems minimizes the time effort of
the accountants in order to close out every financial statements needed. It can be possible that the
accounting systems are efficient when it comes to delivering timely and relevant accounting
records.
Table 2.4: Computer controls thousands of notifications and still function efficiently
Based on the data gathered, 11 of the respondents agree that computer controls thousands
of notifications and still function efficiently. The mean of the frequency falls on agree; median is
under strongly agree and the mode and range falls on agree.
The table above further implies that, most of the respondents agree that computer
manipulates thousands of indicators because it has readymade system that detects every error
Computer Technology improved the way accounting is being done nowadays. Based on
the results above mentioned, computer technology is useful in terms of executing quick
14
transactions because technology nowadays upgrades base on their specific functions. It runs and
scans every part of the transactions in order to meet the standards when it comes to providing
transaction while 6 of them used digital signature and 3 of the respondents used pretty good
privacy software-based systems for solving their security of the transactions issues.
Based on the graph, most of the respondents used Secure Electronic Transaction because
it is more useful for preventing the hackers and frauds enter their system. It can be in the form of
pin code, fingerprints, face detection or any password. It also provides questions once the clients
15
According to the given data, 37% of the respondents consider accuracy in choosing accounting
software next is software’s speed with 27% then 20% is the storage and lastly with 16% is the
cost savings.
Based on the results, it is possible to conclude that banks are choosing accounting
software; first based on its accuracy because it is the most important factor of software. Next is
its speed in evaluating transactions then the data that the software can stored and least factor is
the cost of the software because it is useless if you buy cheaper software but it is not accurate
and slow.
the said software. According to the data gathers, 94% of the respondents’ undergone training for
Based on this, respondents have undergone training because of the new trends that the
software adapted through its existence on the industry also the new specifications of the
software. Others do not experienced training because they are using the same software since they
16
the times the training programs for the accountants’ occurred. According to the data, 50% of the
respondents training quarterly, 17% of them undergone training semi-annually and yearly and
Based on this, half of the respondents undergone a quarterly training because they
upgrade their software every 3 months. Others experienced a semi-annually and yearly training
while some go through a monthly training because of the new instructions in the software
specifications.
According to the data, 74% of the respondents used encryption in managing hacked accounts
next is smartcard with 16% lastly are the code scanner and meCHIP with 5%.
Based on this, most of the respondents used encryption to deal with the hacked accounts
because it provides backup pin code for the user to manipulate the accounts. Hacked accounts
can be recovered by the used of the encryption. It provides back-up files for emergency uses like
17
CHAPTER V
This chapter presents the summary of the data gathered, conclusion on the given
problems and recommendation of the researchers.
A. SUMMARY
The aimed of this study was to gather reliable information that answered the effects of
Isabela. A survey was conducted through questionnaire in order to obtain the accounting
especially here at Roxas, Isabela. Majority of the respondents agreed that modern accounting
quickness of the financial statements and its efficiency and the securities of the important
B. CONCLUSION
Based on the data obtained from the CPAs of Roxas the following conclusions are drawn;
(1) Accountants don’t usually commit errors in a daily basis that affects the accounting cycle,
like committing wrong posting of journal entries, because they are using Microsoft excel which
is easier to manipulate and because of that timely delivery of financial statements was improved.
(2) The computer technology manipulates every transactions needed to record in book of
accounts. It was a tool in quicker meeting of the clients and accountants regarding important
information. Computer technology helps in lessening the time needed to finish financial
statements. Lastly, its systems control every notification regarding transactions and notify the
18
(3) Accounting staffs undergone trainings to further equip themselves with the knowledge
needed to manipulate an accounting software. Most of the accountants are using Secure
Electronic Transaction because it was more reliable when it comes to security issues. The use of
encryption in recovering hacked accounts can also minimize the security risks of the private
information’s, the clients can have back-up files for securing the important documents.
C. RECOMMENDATION
From the findings of this study the following recommendations are therefore made to
Systems by innovating new ideas to come up with software that can create error-free system.
3. Future research should be more focus on the software accuracy in terms of its usage in
19
Bibliography
(2017). Retrieved from Merriam-webster Incorporated: http://www.merriam-
webster.com/dictionary/effect
Ama, G. (2003). Fundamental of Public Sector Accounting and Finance. Nigeria: Amasons Publication
Ventures.
Ama, G. (2004). Simplified Financial Accounting . Nigeria: John Jacob's Classic Publishers Ltd.
Bhorka, A. (2005). Accounting and Finance For Bankers. India: Rajiv Beri for Macmillan Publishers.
He, L. W. (2011). Analysis on the Security of Accounting Information System. Jilin University of Finance
and Economics Journal.
O' Leary, T. J. (2011). Computing Essentials computer . New York: McGrew Hill Inc. Publication.
Ogundeji, T. O. (2013). Computerized Accounting Information Systems and Perceived Security Threats in
Developing Economies: The Nigerian Case.
Vermatt, M. a. (2011). Discovering Computers: Living in a Digital World, Computer. U.S.A: RRD Menasha
Publishing.
Ware, E. O. (2015). Computerised Accounting System an Effective Means of Keeping Accounting Records
in Ghanian Banks: A Case Study.
20
Yadav, P. M. (2016). The Impact of Information Technology on Modern Accounting Systems with
Reference to Pune Region. International Journal of Research in IT and Management, Vol. 6 Issue
8, pp. 87-94.
Zweilf, A. (2009). The Nature of the Threats of the Electronic Accounting Information Systems: An
Application Study of the Jordanian Insurance Companies. Arabian Journal of Accounting, 46-64.
Stallings, W. (2010) Computer Organization and Architecture Upper Sadilte Reves. New Jersey: Pearson
Education Inc.
21
APPENDIX
Letters
INOFEMIA G. GUADO
Senior High School Assistant Principal II
This Institution
Roxas, Isabela
Dear Ma’am,
Good day!
We, Princess Ma. Erica C. Martin, Norman Abanilla, Airene Joy Talag, Clarissa Mae
Mapatac and Mark Joseph Del Monte, Senior High School students of ABM strand, are currently
taking up Applied Research 2. We would like to ask for your permission to allow us to conduct
an interview in line with our research entitled, “The Effects of Computer Technology on
Accounting Technology of Roxas, Isabela S.Y. 2017-2018”.
Respectfully yours,
22
ROXAS NATIONAL HIGH SCHOOL
Bantug, Roxas, Isabela
Dear Respondent,
Greetings!
We, Princess Ma. Erica C. Martin, Norman Abanilla, Airene Joy Talag, Clarissa Mae
Mapatac and Mark Joseph Del Monte, Senior High School students of ABM Strand, are
conducting a study entitled, “The Effects of Computer Technology on Accounting Technology
of Roxas, Isabela S.Y. 2017-2018”.
You were chosen as the respondent because of your knowledge and experience about our
topic. In response to this, kindly accomplish the questionnaire as honestly as possible. All your
responses will be treated with utmost confidentiality.
Respectfully yours,
Noted by:
INOFEMIA G. GUADO
SHS Assistant Principal II
23
Questionnaire
Dear
Respondent,
Greetings!
Kindly accomplish the questionnaire as honestly as possible. All your responses will be
treated with utmost confidentiality. The survey result will be analysed for academic purposes.
PRINCESS MA. ERICA MARTIN, AIRENE JOY TALAG, CLARISSA MAE MAPATAC
MARK JOSEPH DEL MONTE and NORMAN ABANILLA
Researchers
Name:
Optional
Directions: Put a check [ ] in the bracket corresponds to your answer and write your additional
response in the space provided. Read the following questions and instructions carefully.
[ ] Journalizing
[ ] Posting
[ ] Trial Balance
[ ] Adjusting
[ ] Financial Statements
24
[ ] Closing
3. What computerized accounting system software helps to gain inherent advantage while
minimizing risks involved in the daily accounting operations?
[ ] Microsoft Excel
[ ] E-spread sheet
[ ] Cloud Computing
[ ] Digitalization
Strongly Strongly
QUESTIONS Agree Disagree Undecided
Agree Disagree
1. Computer improved speed in
processing information and
financial reports needed by the
internal and external users.
3. Computerized accounting
systems lessened the amount of
time needed to close out each
accounting period.
25
4. Computer can control
thousands indicators
simultaneously and create
notifications to the appropriate
departments or workers if some
indicators do not correspond to
the normal state.
Section III: Do the computer technology advancements secure the business transactions
from hacking?
1. What software-based systems are you using for security issues?
[ ] Digital Signature
[ ] Kerberos
[ ] cost savings
[ ] speed
[ ] storage
[ ] accuracy
3. Is there training programs for the accounting staff on how to operate this software?
[ ] Yes [ ] No
4. What other security measures can be used in case of cracked data based or hacking?
[ ] Encryption
26
[ ] Smartcard System
[ ] MeCHIP
[ ] Code Scanner
LIST OF TABLES
Table 2.2: Computerization helps quick customer service, decision-making process and
accountability of customer
Table 2.3: Computerized Accounting Systems lessened the amount of time needed to close out
Table 2.4: Computer control thousands of notifications and still function efficiently
LIST OF GRAPHS
LIST OF CHARTS
27