ABSTRACT

This study titled “The Effect of accounting information system on financial performance of Dangote Cement Cameroon S.A.” assess the effect of accounting information system such as Data, transaction processing system, recording procedures and information technology infrastructure. A descriptive research design was adopted as an appropriate study design. A sample of 87 employees from 219 permanent staff of Dangote Cement Cameroon S.A. were selected using stratified sampling technique. Self-administered questionnaire composed of closed and open-ended, and Likert scale questions were used to collect data. Data was analyzed using descriptive statistics with excel for quantitative data. In line with descriptive analysis, we used table frequencies, mean values and standard deviation, whereby, with inferential statistics, we used regression analysis and most especially the ordinary least square technique. The results showed that data reliability, recording procedure, transaction processing system and information technology infrastructure have significant effects on financial performance with transaction processing system having the greatest effect. Therefore, based on the results we recommend more focus should be put on transaction processing system, recording procedures and information technology infrastructure respectively.

Keywords: Accounting Information System, Financial Performance Data Reliability, Recording Procedure, Transaction Processing System, Information Technology Infrastructure

CHAPTER ONE

INTRODUCTION

1.1 Introduction

This piece of work is concern with the AIS and the financial performance of Dangote Cement Cameroon S.A. It seeks to investigate how timeliness, level of aggregation and the financial integration of Dangote Cement Cameroon S.A. The study is divided into five main chapters: Chapter one talks about the introduction, the background of the study, the statement of the problem, the research questions, the objectives of the study, the research hypothesis, significance of the study, the scope of the study and the organization of the study. Chapter two deals with review of literature. That is the conceptual review, conceptual framework of the study, theoretical framework, the empirical framework and the knowledge gap. Chapter three provides the research methodology adopted for the study to be carried out. Chapter four is on analysis of data, presentation, and discussion of the findings of the study carried out. Chapter five is on the presentation of the summary of findings, recommendations, conclusion, limitations and suggestions for further research.  

1.2 Background of the Study.

Accounting information system is a combination of people, equipment, policies, and procedures that work together to collect data and transform it into useful information (Emeka, 2012). It is a formal mechanism for gathering, organizing and communicating accounting information about an organization’s activities. It is a system that provides people with either data or information relating to an organization’s operation to support the activities of employees, owners, customers, and other key people in the organization’s environment by effectively supplying information to authorized people in a timely manner (Mogadam, et al., 2010). It is a system, an assemblage of various facilities and personnel, providing information to support managerial decision-making process (Khan, 2017). Its main function is to acquire, process, and communicate data that is essential to the operation of the organization. Nevertheless, it is an entity, composed of various inter dependent subsystems, working together to provide timely, reliable, and accurate information for decision making. It is a network established in an organization to provide managers with information that will assist them in decision making. It is a routine and an automatic system used for gathering and communicating data for the ends of assisting and coordinating collective decision in view of the overall objectives of a firm.

The successful accounting information system would lead to the success of the organization in achieving its objectives but the unsuccessful accounting information system could lead to the failure of the organization in achieving its goals meaning thereby an inability to grow and survive (Perez et a., 2010). Traditional legacy AISs were mainly paper-based systems and seem inappropriate for today’s rapidly changing business environment. Information technology (IT) revolution has transformed the nature of business operation, including accounting, to be led by IT and information systems (IS) applications.  The diffusion of such applications enhances the financial performance and maintains transparency within the business organizations while providing continuous access to the financial reports throughout the financial year (Melitski & Manoharan, 2014). Moreover, effective use of such applications can improve customer satisfaction which ultimately leads to organizational success.

Lots of other benefits for AIS have been cited in the literature including: improved quality, cost reduction, increasing the speed of services, informed decisions and more effective information flow. AIS could provide management with their needs of valuable information that are timely, relevant, verifiable, and accurate to enable them to make better decisions (Al-Adaileh, 2008). However, gaining of such significant benefits depends on several contextual and external factors that might hinder or support the achievement of these benefits. These factors might include organizational and society culture, IT infrastructure, IT skills, management support, and the user’s perception of the usefulness of IS applications including AIS. Therefore, this study sought to explore the potential impact of AIS on the financial performance of a manufacturing company; a case of Dangote Cement Cameroon S.A.

Accounting information system is an important tool in the business world because it ensures data accuracy, data processing, less time in processing the financial transactions of the organization in which Dangote Cement Cameroon S.A is not left out. Previous research suggests that Information Technology has a positive influence on accounting firms for example, it improves accuracy, reduces the time needed to prepare accounts and it results in the improvement of output and quality. Therefore, the aim of this research is to determine whether these findings can be replicated within a manufacturing company in Dangote Cement Cameroon S.A.