TABLE OF CONTENTS
DECLARATION
APPROVAL ii
DEDICATION iii
ACKNOWLEDGEMENT iv
LIST OF TABLES ix
LIST OF FIGURE x
ABSTRACT xi
CHAPTER ONE 1
INTRODUCTION 1
1.0 Introduction
.1 Background of the Study 1
1.2 Problem Statement 3
1.3 Research Objectives 3
1.3.1 General Objectives 3
1.3.2 Specific objective of the Study 4
1.6 Scope of the study 4
1.6.1 Subject Scope 4
1.7.2 Geographical Scope 5
1.7.3 Time Scope 5
1.7 Significance of the study 5
1.8 Operational Definition of key terms and concepts 5
1.9 Conceptual Framework 6
V
ChAPTER TWO .8
LiTERATURE REVIEW 8
2.0 Introduction 8
2.1 Effect of computerized accounting information system on financial performance 8
2.2 Effect of manual accounting information systems on Financial performance of
organisations 11
2.3 Effect of internal accounting system control on financial performance of organisations... 13
2.4 Related study on accounting information system and financial performance 15
CHAPTER THREE 17
METHODOLOGY 17
3.0 Introduction 17
3.1 Research Design 17
3.2 Study Population 17
3.2.1 Sample Size 17
3.2.2 Sampling Procedure 18
3.3 Sources of Data 19
3.3.1 Primary Data 19
3.3.2 Secondary Data 19
3.4 Data Collection Instruments 19
3.4.1 Questionnaire 19
3.6 Data Analysis Techniques 20
3.7 Ethical Considerations 20
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CHAPTER FOUR .21
PRESENTATION, INTERPRETATION AND ANALYSIS OF FINDINGS 21
4.0 Introduction 21
4.1 Profile of Respondents 21
4.1.1 Gender Categories of Respondents 21
4.1.2 Age categorization of respondents 22
4.1.3 Academic Qualification of Respondents 22
4. 1 .4 Marital status 23
4.1.5 Time service of respondents in the organization 23
4.2 Accounting information system in DFCU bank 24
4.3 Financial performance of DFCU bank 27
4.4 Objective one; Effect computerized accounting information system on financial
performance of commercial banks 28
4.4.2 Regression Analysis: Effect computerized accounting information system on financial
performance of commercial banks 29
4.5 Objective two; Effect manual accounting information system on financial performance of
commercial banks 31
4.5.2 Regression on effect manual accounting information system on financial performance of
commercial banks 32
4.6 Objective three; effect of internal accounting system control on financial performance of
commercial banks 33
4,6.2 Regression on internal accounting systems on financial performance of commercial
banks at 0.05 Level of significance 35
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CHAPTER FI\7F.37
DISCUSSIONS, CONLUSIONS AND RECOMMENDATIONS 37
5.0 Introduction 37
5.1 Discussion of findings 37
5.2 Conclusions 38
5.3 Recommendations 39
5.4 Areas of further study 40
REFERENCES 41
APPENDICES 44
Appendix I: Questionnaire 44
Appendix II: Interview Guide 48
ABSTRACT The study objective of the study was to determine the effect of accounting information system on the financial performance of commercial banks in Uganda using a case study of DFC bank, Kampala. The objectives were to determine the effect computerized accounting information system on financial performance of commercial banks. To assess the effect of manual accounting information systems on financial performance of commercial banks and To determine the effect of internal accounting system control on financial performance of commercial banks. The study was conducted in DFCU bank from 40 respondents who were the employees. The data was collected using closed ended questionnaires, the analysis took the use of descriptive statistics of mean and standard deviation and correlation analysis. The study findings indicate that there is a significant relationship between computerized accounting information systems on financial performance of commercial banks, since the sig. value (0.048). There no significant relationship between manual accounting information systems on financial performance of commercial banks, since the sig. value (0.386). There is a significant relationship between internal controls accounting information systems on financial performance of commercial banks, since the sig. value (0.039). The study concluded that having proper accounting systems of computerization contribute to financial performance of DFCU bank. The results also indicate that the manual accounting system usage was having a low contribution or influence to financial performance of DFCU bank. The study on the third objective concludes that the proper accounting internal systems enabled the organization to work for profitability of the organization. The study concludes that accounting information system in DFCU bank contributes to financial performance of the bank though loopholes in accounting information are viewed and seen. The study recommends that computerized accounting systems need to be enhanced, developed and improved in order to enable the organization attain its proper functionality and accountability. Computerized systems need to be enhanced with the mode of the proper software that enable proper decision making in the organizations. The organization should increase the use of accounting information in marketing decisions in bringing in new product into the market, increasing sales volume and in taking better marketing strategies. On the third objective, the management need to adequately identify and manage duties including providing means to the operations of the organization through well determined duty operations and provision of an adequate auditing mechanism for the organization.
