Digitalized Accounting System and Financial Reporting Quality of Manufacturing Firms in Nigeria

Digitalized Accounting System and Financial Reporting Quality of Manufacturing Firms in Nigeria

Author by Dr. Grace Ogundajo

Journal/Publisher: International Journal Of Innovative Research In Accounting And Sustainability

Volume/Edition: 7

Language: English

Pages: 95 - 106

Abstract

The reliability of financial statements greatly depends on the qualitative and enhancing characteristics of financial reporting quality (FRQ), but over the years, the financial reporting quality has been criticized leading to the application of accounting software. However, the extent of the effect of accounting software on FRQ remains uncertain. Consequently, this study examined the effect of accounting software on the FRQ of manufacturing companies in Nigeria. The study used multiple regression analysis and the results showed that accounting software had effect on fundamental and enhancing qualitative characteristics of financial information. The study recommended that managers of the manufacturing companies should strive to improve on the effective and efficient use of the accounting software towards enhancing financial reporting quality and credibility of financial statements.


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