Influences of accounting information system on the business performance and internal control system of small and medium enterprises in the City of Dasmariñas / by Ma. Rika Z. Acunin, Danielle Mei C. Frias and Jennica Rexel M. Gurango.

Thesis (Bachelor of Science in Accountancy) Cavite State University.

Includes bibliographical references.

College of Economics, Management, and Development Studies (CEMDS)

ABSTRACT

ACUNIN, MA. RIKA Z., FRIAS, DANIELLE MEI C., GURANGO, JENNICA REXEL M. Influence of Accounting Information System on the Business Performance and Internal Control System of Small and Medium Enterprises in the City of Dasmariñas. Undergraduate Thesis. Bachelor of Science in Accountancy. Cavite State University, Indang, Cavite. August 2022. Adviser: Dr. Dolores L. Aguilar, CPA.

The study was conducted in City of Dasmariñas, Cavite from July 2021 to January 2022 to examine the influence of Accounting Information Systems (AIS) on Small and Medium-sized Enterprises' business performance and internal control system. Specifically, the study aimed to describe the sociodemographic profiles of the participants and the business profiles of the enterprises; assess employees' knowledge of AIS; measure the depth of AIS usage in practice; determine SMEs' business performance in terms of profitability, goal achievement, and growth and expansion; identify SMEs internal control in terms of operational efficiency and effectiveness, accuracy and reliability of information, and timeliness of financial reporting; and ascertain if there is a significant association between the usage of AIS and business performance and the usage of AIS and internal control systems. The study used quantitative descriptive correlational research approach. A total of 258 participants working on essential industry SMEs participated in the study. Longer-serving sole proprietorships are more likely to use AIS, commonly these are manual and automatic systems. An entity that uses AIS is usually due to the knowledge and initiative of the owner. SMEs that provide seminars and training on AIS, use written accounting policies and procedures, have a higher frequency of usage of AIS, and can be concluded to have extremely knowledgeable employees in terms of using AIS and that the depth of usage of AIS in practice is to an extremely great extent. Results indicated that there is a moderate positive asymmetric association between the usage of AIS and the business performance with a Somers' D value of 0.568 (≈ 0.60). The same case with the usage of AIS and internal control,with Somers' D value of 0.457 (≈ 0.50); there is a moderate positive asymmetric association between the two. There is a direct association between the independent variable and its dependent variables. It is recommended that SMEs should make use of AIS, employ computer literate and highly experienced individuals, and offer up-to-date IT training. Further study is suggested to further develop this research by adding independent variables under AIS such as IT infrastructure, software and data, primarily to determine the possibility of other matters that can influence SMEs' performance and internal control such as transparency, employees' satisfaction, customer service and the like.

Submitted to the University Library 08/25/2022 T-9275