Accounting

Evaluating the Design of Accounting Information System and its Implementation

in Ethiopian Manufacturing Industries

Dr. Yuvaraj Sambasivam, Associate Professor, Department of Management, College of Business and

Economics, Debre Morkos University, Debre morkos, Ethiopia

Mr. Kibret Baye Assefa, Head, Department of Accounting, College of Business and Economics

Debre Morkos University, Debre morkos, Ethiopia

Abstract

The purpose of this research is to evaluate the effectiveness of accounting information system design

and implementation. This study give an insight in identifying better and poor performance of the AIS,

and a clue of measurements to be taken in order to improve the AIS design and implementation. Data

were collected from primary sources while Z-Test statistics and multiple comparison tests were used

for analysis of data. The results indicate that the accounting information system design and

implementation of these firms is effective at the same time as it could: enhance quality of financial

reports, control and safeguard assets. The results did not indicate that the accounting information

system design and implementation is effective, as it could not improve performance evaluation. It was

concluded that for accounting information system design and implementation to be effective, firms’

accounting information system stakeholders are supposed to focus on: enhanced AIS design and

implementation criteria and increased attention towards professional and operational standard.

Key Words: effectiveness of accounting information system, AIS design and implementation,

manufacturing industries, quality of financial reports, professional and operational standard

Introduction

Accounting Information System (AIS) as one of the most critical systems in the organization has also

changed its way of capturing, processing, storing and distributing information. Nowadays, more and

more digital and on-line information is utilized in the accounting information systems....