Assessment of Accounting Information System Practice and

Internal Control (The Case Of Construction & Business Bank Bahir

Dar Branch)

A research paper submitted to accounting and finance department for the partial
fulfillment of BA degree in accounting and finance.
Prepared By:

ID NO

1. TesfahunMelak ---------------------------------------------0506130
2. YaregalMola ------------------------------------------------0506200
3. yayetamirat --------------------------------------------------0506202
4. YilfagojamMaru ---------------------------------------------0506230
5. ZelalemTsegaye ---------------------------------------------0506255
Advisor: HunegnawAbebe

Department of Accounting and Finance

College of Business and Economics
Bahir Dar University
June 2015
Bahir Dar, Ethiopia
DECLARATIONOFORGINALITY

We, the researchers, conform that the senior essay titled The Assessment of Accounting
Information System Practice and Internal Control (The case of Construction and Business
Bank-Bahir Dar Branch) is our original work and is being submitted in partial fulfillment for
the award of the BA degree in Accounting and finance in Bahir Dar University. This report has
not been submitted earlier either to this University /Institution for the fulfillment of the
requirement of a course of study.

Name of students
1.
2.
3.
4.
5.

TesfahunMelak
YaregalMola
YayeTamirat
YilfagojamMaru
ZelalemTsegaye

Signature
_________
_________
_________
_________
__________

Date
_________
__________
_________
__________
__________

APPROVAL BY ADVISOR
__________________________________

ACKNOWLEDGMENT
First our innumerable praise to the almighty GOD for givingus the opportunity, capacity and
guidance throughout our life.
Secondly we would like to extend our deep indebtedness to our advisor, Hunegnaw Abebe, for
his invaluable comments, encouragements and guidance at various stage of the study. Thirdly we
would like to thanks all employees and managers of construction and business bank in Bahir Dar
branch including its sub branch, for their politeness, for their support by filling the questionnaires
and assisting us for the proper accomplishment of our research by providing all relevant
information what we need. Finally our deepest thank is goes to our families and friends they
providing us money and materials relevant for the study.

ACRONYMS
AIS: Accounting information system
ERP: Enterprise resource planning
CFOs: Chief financial auditors
CBB: Construction and business bank
ATM: Automatic teller machine
ISDM: Information system department manager
ICDM: Internal control department manager

LIST OF TABLES

PAGE

Table 1 Age distribution of employees---------------------------------------------------------------- 22

Table 2 Experience of employees---------------------------------------------------------------------- 23
Table 3 Educational back ground of employees----------------------------------------------------- 24
Table 4 Information system department gives necessary
to its employees--------------------------------------------------------------------------------- 24
Table 5The bank updates new information system------------------------------------------------ 25
Table 6Major factors that hinder the practice of AIS practice------------------------------------ 26
Table 7 Top management of CBB faces budget constraint---------------------------------------- 27
Table 8 Internal control auditor discovers errors and frauds-------------------------------------- 28
Table 9 Contribution of AIS practice in customer attraction
and its relevance in decision making and financial reporting----------------------------30

ABSTRACT
This research was conducted in construction and business bank in Bahir Dar branch, which
operates banking service. The study would focus on the assessment of accounting information
system practice and internal control. The main objective of the study is to show whether the
employees have practiced accounting information system in internal control, accounting
information system effect in decision making, the contribution of accounting information system
practice in customer attraction, to examine the sufficiency of budget to information system
department and the role of the bank in updating new information system.In order to achieve this
objective the study was adopted more of quantitative research approach. Primary data was
collectedusing a self administered questionnaire and interview from 30 out of 80bank employees
holding different position selected through judgmental sampling techniques. For the data
analysis descriptive data analysis and percentage were used to assess or describe phenomena or
variables that influencing internal control. Currently accounting information system is widely
used in the bank and enhances its internal control, as most of the banks activities and the
management decisions highly depend on accurate and timely information. This research result
indicates that the bank is practicing accounting information system in the way it helps to
improve managers decision making process, internal controls and the quality of the financial
reports.

TABLE OF CONTENT
CONTENTS

PAGE

ACKNOWLEDGMENT-------------------------------------------------------- i
ACRAONYMS------------------------------------------------------------------ ii
LIST OF TABLES------------------------------------------------------------- iii
ABSTRACT--------------------------------------------------------------------- iv
TABLE OF CONTENT------------------------------------------------------- V
CHAPTER ONE
INTRODUCTION------------------------------------------------------------------------ 1
1.1 Back ground of the study----------------------------------------------------------------------------- 1
1.2 Back ground of the organization--------------------------------------------------------------------- 2
1.3 Statement of the problem----------------------------------------------------------------------------- 3
1.4 Objective of the study--------------------------------------------------------------------------------- 4
1.5 Research questions------------------------------------------------------------------------------------- 4
1.6 Significance of the study------------------------------------------------------------------------------ 5
1.7 Scope of the study-------------------------------------------------------------------------------------- 5
1.8 Limitation of the study-------------------------------------------------------------------------------- 5
1.9 Organization of the study----------------------------------------------------------------------------- 5

CHAPTER TWO
LITRATURE REVIEW------------------------------------------------------- 6
2.1 Accounting information system (AIS) ------------------------------------------------------------- 6
2.1.1 Components of AIS--------------------------------------------------------------------------------- 6
2.1.2 Importance of AIS----------------------------------------------------------------------------------- 8

2.1.3 Characteristics of AIS------------------------------------------------------------------------------- 8

2.1.4 The need for AIS------------------------------------------------------------------------------------- 9
2.1.5 Fundamental AIS principle------------------------------------------------------------------------- 9
2.1.6 Advantages and implications of AIS------------------------------------------------------------- 10
2.1.7 The AIS course complements other system course-------------------------------------------- 10
2.2 Accounting information in valuation setting------------------------------------------------------ 11
2.3 Accounting provides economic information------------------------------------------------------ 12
2.4 Internal control system------------------------------------------------------------------------------- 12
2.5 Components of internal control system------------------------------------------------------------ 12
2.6 The importance of internal control----------------------------------------------------------------- 16
2.7 Analysis of internal control system---------------------------------------------------------------- 16
2.8 Banking and information system------------------------------------------------------------------- 18

CHAPTER THREE
METHODOLOGY OF THE STUDY---------------------------------- 20
3.1 Research methodology----------------------------------------------------------------------------- 20
3.2 Research design------------------------------------------------------------------------------------- 20
3.3 Source of data--------------------------------------------------------------------------------------- 20
3.4 Methods of data collection------------------------------------------------------------------------ 20
3.5 Sampling size and technique---------------------------------------------------------------------- 21
3.6 Methods of data analysis--------------------------------------------------------------------------- 21

CHAPTER FOUR
8

DATA ANALYSIS AND INTERPRETAION----------------------- 22

4.1 Introduction to data analysis---------------------------------------------------------------------- 22
4.2 Personal profile of respondents------------------------------------------------------------------ 22
4.2.1 Age distribution of the respondents----------------------------------------------------------- 22
4.2.2 Work experience of employees---------------------------------------------------------------- 23
4.2.3 Educational back ground of employees------------------------------------------------------ 24
4.3 General questionnaires of CBB in Bahir dar branch------------------------------------------ 24
4.3.1 Information system department gives necessary training
to its employees how to practice AIS------------------------------------------------------ 24
4.3.2 The bank updates new information system------------------------------------------------- 25
4.3.3 Major factors that hinder the practice of AIS
in internal control---------------------------------------------------------------------------- 26
4.3.4 The top management of CBB faces budget constraint
for AIS practice----------------------------------------------------------------------------- 27
4.3.5 The internal control auditor discovers errors and frauds
in activities of employees while practicing AIS---------------------------------------- 28
4.3.6 Contribution AIS practice in customer attraction and itsrelevance
in decision making and financial reportig ------------------------------------------------------- 29

CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION--- 31
9

5.1 Summary-------------------------------------------------------------------------------------------31
5.2 Conclusion---------------------------------------------------------------------------------------- 31
5.3 Recommendation--------------------------------------------------------------------------------- 33
Reference----------------------------------------------------------------------------------------------- 34
Appendix----------------------------------------------------------------------------------------------- 35

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CHAPTER ONE
INRODUCTION
1.1 Back Ground Of The Study
Accounting information system (AIS) IS a system of collecting, storing and processing financial
and accounting data that is used by decision makers. Accounting information system is generally
a computer based method for tracking accounting activity in conjunction with information
technology resources .The resulting statistical reports can be used internally by management or
externally by other interested parties including investors creditors and tax authorities. The actual
physical devices and systems that allow the AIS to operate and perform its functions are:
.Internal controls and security measures, what is practiced to safe guard the data.
.Model base management (Romney, Marshall B: Paul John and Hall, 2009).
Initially accounting information systems were predominantly developed in house as legacy
systems. Such solutions were difficult to develop and expensive to maintain in. Today accounting
information systems are more commonly sold as prebuilt soft ware packages from vendors such
as Microsoft, sage group, SAP and oracle where it is configured and customized to much the
organizations business process. As the need for connectivity and consolidation between other
business systems increased, accounting information system were merged with large more
centralized systems known as enterprise resource planning(ERP). Before with separate
applications to manage different business functions, organizations had to develop complex
interfaces for the systems to communicate with other (Romney,Marshall B; Paul Jhon and
Hall,2009).

1.2 Back Ground Of The Organization

Construction and business bank (CBB) is a wholly government owned public enterprise and
successor of the housing saving bank which was formed in1975 through the manager of two
financial institutions namely; empirical savings and home ownership association and saving and
mortgage corporation of Ethiopia which where nationalize at the onset of the socialist era of
Ethiopia.
Following the market based economic policy of the country and insuring economic reform
programs initiated by the government in 1992, housing and saving bank was reconstituted as
CBB in September 1994 by regulation number 203/94 with an authorized capital of birr 71.8
million. The regulation gave to CBB the mandate to provide universal banking service. In
September 2000 CBB is converted to share company in accordance with the Ethiopian
commercial code with capital of birr 79.0 million. The head office of CBB is in Addis Ababa and
located in Cherkos. Now a day CBB has 120 branches and three of them are found in Bahir dar.
Vision of the CBB is to be the best performing bank in Ethiopia by 2020 and its mission is
devoted to provide banking service to add value to the stake holders there by to further national
economic development. In addition its core value is customer oriented, seeing changes as
opportunity, team work, communication and impartiality. Above all the bank has 12 boards of
directors, who are accountable to the general meeting of share holders. The board of directors
appoints the president of the bank who carries out the day to day management of the bank.

1.3 Statement Of The Problem

Accounting information system is an important mechanism of an organization that is vital for
effective management decision making in controlling and administering an organization.
Accounting information is a business resource like the economic resource of raw materials,
capital and labor that is used for effective operational activities. All decision makers in practice
today need to have basic knowledge of how AIS works. This knowledge gives decision makers a
way for better understanding of information constraints, measurement limitations and potential
applications.
An effective accounting information system provides reliable accounting information for
locating facts in recording, reporting, summarizing, analyzing and interpreting financial
information for business. (According to Tesfa Zerihuns research, June 2006 the main challenges
of accounting information system practice in CBB are disapproval of new information system
and budget constraint by top management and internal control of the bank). And also the
researcher recommended:
Information system department should give necessary training to its staff workers.
Every transaction should be reviewed by internal control auditor to discover any
errors and frauds occurring in all activities of employees.
Both information system department and internal control department must do
together for efficient and effectiveness of AIS practice in Construction and
business bank. Therefore, this study is aimed at assessing the practice of AIS and
internal control of construction and business bank Bahir Dar branch.

1.4 0bjective Of The Study

General objectives
The general objective of the study is to assess the practice of AIS and internal control of
construction and business bank Bahir Dar branch.
Specific objectives
1.To assess the major factors that hinders the practice of AIS and internal controls.
2. To assess factors that affects the bank to update new information system.
3. To examine the top managements allocation of budget to information system department.
4. To assess when and how the information system department gives necessary training to its
staff workers.
5. To examine the contribution of AIS practice in customer attraction and its relevance in
decision making and financial reporting.
6. To point out how the internal control auditor discovers errors and frauds with regard to AIS in
activities of employees.

1.5 Research Questions

1. How the bank updates new information system?
2. In what ways the top management allocates budget to information system department?
3. How information system department gives necessary training to its staff workers?
4. When and how internal control department and information system department do together for
efficient and effectiveness of AIS practice in CBB?
5. How the internal control auditor discovers errors and frauds in activities of employees in the
practice of AIS?

1.6 Significance ofthe Study

Theresearch of the study will help construction and business bank to understand the strengths
and weakness implementation of accounting information system in internal control. Besides, this
research paper uses for other organization in the same sector such as commercial bank of
Ethiopia, Dashen bank and etc. Therefore, hope fully that construction and business bank will
take all necessary measures to overcome the problem of AIS practice.

1.7 Scope ofthe Study

According to several researchers, AIS has a lot of contributions to different companies and
organizations as follows:
Good cooperation
To meet the needs of multi user
To control after wards and control in advance and in concurrent (Mahdi
Saleh.2010). But the scope of this study will restrict to the practice of AIS and
internal control of CBB Bahir Dar branch.

1.8 Limitation Of The Study

Although it is necessary to conduct the study more accurately and precisely, the researcher faced
some limitations in this research study. Some of these limitations were;
Absence of manager from office due to meeting during data collection period.
Inefficiency of secondary data; due to this only primary data were obtained.

1.9 Organization Of The Study

The research paper has five(5) chapters. The first chapter deals with introduction; includes back
ground of the study, statement of the problem, objective of the study, significanceof the study
and scope of the study.
The second chapter focuses on the review of related literature. The third chapter is about
methodology of the study. The fourth chapter includes data analysis and interpretation. Finally
the fifth chapter is conclusion and recommendation.
5

CHAPTER TWO
RELATED LITRATURE REVIEW
2.1 Accounting Information System (AIS)
Accounting information system (AIS) is an organized means of collecting, entering and
processing data, storing managing and reporting information so that an organization can achieve
its objectives and goals that are designed to make the accomplishment of accounting function
possible. It can be used by accountants ,consultants, business analysts, managers, chief financial
officers (CFOs), auditors regulating and tax agencies. In particular, specially trained accountants
work with AIS to insure the highest level of accuracy in companys financial transaction and
record keeping and to make financial data easily available to those who legitimately need access
to it, all while keeping data intact and secure. AIS process data and transactions to provide users
with the information they need to plan, control and operate their business. AIS can be manual
system or computerized system using computer regardless of the types. AIS are designed to
collect, enter, process, store and report data and information (Marshal B.Roomney, 2009).
2.1.1Components of AIS
AIS generally consist of six main parts. These are people, procedures and instructions, data, soft
ware, IT infrastructure and internal control.
People
The people in AIS are simply the system users, professionals who may need use an
organizations AIS include accountants, consultants, business analysts, managers, chief financial
officers and auditors.
Procedures and Instructions
The procedures and instructions of AIS are the methods it uses for collecting, storing, retrieving
and processing data. These methods will be both manual and automated and the data can come
from both internal sources (example employees) and external sources (example customers, on
line orders). Procedures and instructions will be coded in to AIS soft ware. They should also be
6

coded into employees through documentation and training procedures and instructions must be
followed consistently to be effective.
Data
The data contained in AIS as all the financial information pertinent to the organizations business
practice. Any business data that impacts the companys finance should go into depend on the
nature of the business but, it may consists of the following:
o Sales order
o Customer billing statements
o Sales analysis reports
o Tax information etc
Soft ware
The soft ware components of AIS is the computer programs used store, retrieve, process and
analyze the companys financial data. The key components of effective AIS soft ware are quality,
reliability and security. Managers relay on the information out puts to make decisions for the
company and they need high quality information to make sound decision.
Information technology infrastructure
IT infrastructure is just a fancy name for the hard ware used to operate the AIS. Most of these
hard ware items are things a business would need to have any way; they include personal
computers, servers and printers.
Internal controls
The internal control of AIS are the security measures it contains to protect sensitive data. AIS
must have internal control to protect against unauthorized computer access and to limit access to
authorized users which includes some users inside the company (Lehman Brothers, Surbanes
Oxely Act World com).

2.1.2 Importance of accounting information system

Generally, information system is the whole of related components that are working together to
collect, store and distribute data for the purpose of planning, controlling, coordination, analysis
and decision making. The AIS that is created in a business is directly related to the organizations
culture, levels of strategic planning and the information technologies that specific business have.
It is possible to obtain healthier information about the financial structures of the business that set
up a good accounting information system. Some of the important functions that an accounting
information system perform in business are collecting and recording data about the activities and
transactions, planning, processing the data and training it into information to be used in decision
making for planning , application and control activities and carrying out the necessary controls in
order to protect the business assets. Accounting information plays an important role in the
process of managing an enterprises activity. In the last ten years, there has been an intensive
process of implementing AIS in the world. These systems were implementing in the large
industrial and small trade enterprises. Later, implementation of AIS started in other enterprises
and state institutions. The implementation of AIS is quite an extensive investment project for
most enterprises (Marshal B.Roomney 2009).
2.1.3 Characteristics of AIS
AIS are a transaction based information system as it deals with the economic event taking place
in business enterprise. In the past, AIS were designed primarily for reporting to statutory bodies
such as tax authorities, regulatory authorities and investors (Muneesh Kumar, 1998).
The major characteristics of AIS are:
AIS deal with transaction which are of financial nature and can be expressed in terms of
money.
AIS prepare to the information needs of both external and internal users.
AIS use quite simple and well structured information system.
AIS use mainly historical data but may also include future data in the form of budgets
and forecasts.
The source of data is mainly internal to the enterprise and thus, data based are well
defined and integrated and controlled.

 AIS (is) are subject to greater degree of risks of security and to computer crimes.
Therefore, there is a need for greater control over AIS.
2.1.4 The need for AIS
Effective AIS is essential to any organizations for long run success. Without a means of
maintaining the event that occur, there would be no way to determine how well the organization
performing. The need for AIS about a business comes from both outside and inside. People
outside the business usually want to summarized information presented in standardized forms
and reported at annually and quarterly intervals. In contrast, people inside the business want
detailed information to the need of specific decisions and reported at frequent intervals- often
weakly or monthly (Robert K. Eskew, 1996).
Outside need
The principal need for AIS outside the business comes from capital market participants,
governments and special interest groups (including labor union, consumer and customers).
Inside need
The need for AIS from inside the business comes from managers and employees. The demand
for AIS, whether it comes from outside or inside the business, it met by the same accounting
system (Robert K.Eskew, 1996).
2.1.5 Fundamental AIS principles
There are five fundamental principles of AIS. These are:
A .Control principle: - managers need to control and monitor business activities. To this end,
the control principle requires AIS to have internal control. Internal controls are procedures
allowing managers to control and monitor business activities.
B. Relevance control: - This principle requires AIS report useful, understandable, timely and
pertinent information for effective decision making.
C. Compatibility principle: - AIS must be consistent with the aims of a company. Theis
principle requires that AIS conform to a companys activities, personnel and structure.
9

D. Flexibility principle: - AIS must be adjusted to changes. This requires that AIS be able to
adopt changes in the company, business environment and needs of decision makers.
E. Cost benefit principle: - AIS must balance benefits and costs. This principle requires the
benefits from an activity in AIS to out weight the cost of that company. The cost and benefits of
an activity such as reporting certain information impact the decisions of the users. They also
affect const of computing, personnel and other costs (Kermit D. Larsen 15th edition).
2.1.6 Advantages and implications of AIS
A big advantage of computer based AIS is that they automate stream line reporting. Reporting is
major tool for organizations to accurately see summarized timely information used for decision
making and financial reporting. The AIS pulls data from the centralized data base processes and
transforms it and ultimately generates a summary of that data as information that can now be
easily consumed and analyzed by business analysis, managers, or other decision makers. These
systems must insure that the reports are timely so that decision makers are not acting on old,
irrelevant information and rather able to act quickly and effectively based on report results.
Consolidation is one of the

hall marks of reporting as people do not have to look through an

enormous number of transactions (Marshal B, Roomeny, 2009).

2.1.7 The AIS coursecomplements other system course
There are many systems that covert design and implementation of information systems and that
help an organization to develop specialized skills in such areas data bases, expert systems and
telecommunication. The AIS course differs from these other information system course is its
focus on accountability and control. These issues are important because, in most large business
the managers are not the owners. Instead the owners internal management with assets and hold
them accountable for their proper use. Data and information are among an organization most
valuable assists clearly the AIS must include control to insure safety and availability the every
organization accept inputs and transactions then into out puts that take from of products and
service. A manufacturing firm transforms raw materials, labor and other scarce resource
intangible out puts. The users of accounting information fall in to two broad groups.

External users
10

 Internal users
External users include stock holders, creditor, government agents, customers and competitors,
labor unions and public at large. They receive and depend on variety of outputs from
organizations AIS. Many of these outputs are of routine in nature.
Internal users comprise managers whose requirement depends on their level in an organization or
particular function they perform. They are different information needs and demands at different
manager levels in an organization. The AIS summarizes and filters the data available to decision
makers by processing the data and accounting information influences organizational decisions.
The production of useful information iscontained by the environment of AIS and the cost benefit
structure inherent in users decision. The uncertainty of the environment in which information is
developed and presented means the estimates and judgments must be made. No information
system can ignore the partiality of presenting information. If information costs more to provide
than organizations view point, distinction might be drawn between two broad categories of
accounting information mandatory and discretionary. Various government agencies, private
agencies and legislation set statutory requirement for record keeping and reports (Marshal B.
Roomney 2009).

2.2 Accounting Information In Valuation Setting

It is time to combine. The themes of accounting as a source of information and that information
are used in valuation setting. The accounting system is the sole supplier of information to the
valuation market. This means the accounting measures and the market valuation are based up on
the same underlying source information about the reporting entity. Accounting and non
accounting source there by allowing the market valuation to be informed by non accounting as
well as by accounting information (GohnA.christensen.Joels Demskl 5th edition).

11

2.3 Accounting Provides Economic Information

Accounting has been described sufficiently and accurately as the measurement and
communication of financial economic data. The accountant is the major channel through which
quantitative information flows to management. The position of the management account is
unique with respect to information about the firm apart from top management. Probably no one
in the organization can know more about the function of the given business. The management
accountant must not only gather information from every function area and level of the company
but also keep abreast of happenings out the firm in the business world. However, gathering
information is only the first step. The accountant must analyze it that is breaking it down,
shiftout and organize it into meaningful categories. The must evaluate it that is decide firs is what
is relevant and irrelevant and disregarding the irrelevant. Rank accounting to its degree of
importance to management (S.K Bhattachery, 1975).

2.4 Internal Control System

The system of internal control is the plan of the organization and all the methods and procedures
adopted by the management of an entity to assist in achieving managements objective of
insuring, as far as practicable, the ordering and efficient conduct of its business. In other words,
internal control is defined as a process affected by the entitys board of directors, management
and other persons designed to provide reasonable assurance regarding the achievement of
objectives in the following categories:
Effectiveness and efficiency of operation
Reliability of financial reporting
Compliance with applicable laws and regulations

2.5 Components Of Internal Control Process

Internal control of an organization may be viewed as including five components. These are:
control environment, risk assessment, accounting information and communication system,
control activity and monitoring.

Control environment
12

The control environment sets the tone of an organization by influencing the control
consciousness of the people. It is viewed as the foundation for the other components of internal
control. The following are the major control environment factories.

Integrity and ethical value

Commitment to competence
Board of directors
Management philosophy and operating style
Organization structure
Human resource policies and procedures
Assignment of authority and responsibility (Whittington pany, 9th edition).
Risk assessment

Risk assessment is managements process of identifying and analyzing the risk that might
prevent the organization from both external and internal factors. Risk from external factors
affects the organization as a whole they include, risk from economic or technological change,
government regulation and natural catastrophes. Risk from internal factors relates to specific
activities of an organization. They includes eruption of information system, errors due to
untrained or unmotivated employees or to changes in management responsibilities and the result
of an effective board of directors or audit committees charge is source of risk for all organization.
An organization needs processes to identify changed condition that can significantly affect the
organization ability to achieve its objective managements responsibility is to risk to organization
objectives estimate the significance of each risk assesses its likelihood and identify actions that
should taken reduce its significant or likelihood in response to provide risks. Management may
for example identify alternative supply sources, expand product line and obtain more relevant
operation reports or improve training programs (Whittington pany, 9th edition).
Control activities
Control activitiesare policies and procedures that help ensure that management directives carried
out. These policies procedures promote action that addresses the risks that face to organization
while there are many different types of activities performed in an organization. Only the
following types are generally relevant to an audit of the organizations financial statement
(Whittington payn, 9th edition).

13

Performance review
Information processing control
Physical control
Segregation of duties

A. Performance review
These controls includes review of actual performance as compare to budgets, forecasts and prior
period performance relating difference sets of data to one another and performance over all
reviews of performance reviews provide management with an overall indirections of whether
personnel at various levels are effectively pursuing the objects of the organization. By
investigating the reasons for unexpected performance, management may make timely changes in
strategies and plans or take other appropriate corrective action.
B. Information processing control
Varity of control activities is performed to check the accuracy, completeness and authorization of
transaction. The two broad categories of information processing control includes general control
activities, which apply to all information processing procedures and application control activities
which apply only to one particular activity. Examples of general control activities would include
those that help insure the reliability of all information processing activities.
C. Physical controls
This controls include those that provide physical security over both records and other asset
activities that safeguard may include maintaining, control, at-all time over uninsured per
numbered, documents as well as other journals, ledgers and restricting access to computer
programs and data files.

D. Segregation of duties
A fundamental concept of internal control is that no one department or person should handle all
aspect of transaction from beginning to end. In a similar manner, no one individual should
perform more than one of the functions of authorized transactions, recording transactions and
14

maintains custody over assets. Also to the extent possible individuals exercising the specific
transactions should be segregated from these functions.
Information and communication
Information refers to the organizations accounting system which consists of methods and
records established to identify, assemble, analyze, classify, record and report the organizations
transactions and to maintain accountability or the related assets and liabilities maintain in
organizations have systems that are able to process huge numbers of various types of
transactions. Information systems are designed and installed not only to produce the ledger
balance from which financial statement are prepared, but also to produce management control
and operation information thus, accounting system and operation control are closely related in an
organization. Good communication requires effective oral communication, adequate procedure
manuals and other types of documentation.
Monitoring
Monitoring is the internal control component which involves the ongoing process of assigns the
quality of internal control over time and taking corrective action when necessary. The quality of
controls might be adversely affected in various ways, including lack of complains, changing
condition or even misunderstanding. Monitoring is accomplished through ongoing activities.
Separate evaluation or some combination of the ongoing activities would include management
supervise activities and other actions the personnel might take to assure an ongoing effective
internal control process. An internal audit function is common in large organization to monitor
and evaluate controls ongoing base. The expanded span of control and the growth in the volume
of transaction associated with large organization where factors in the emergence of internal
control function. The objective of internal control audit function is to serve management by
furnishing management with results of analysis and appraisal of such activities and systems as:

15

The organizations information system

The organizations internal control structure
The extent of compliance to operating policies, procedures and plan
The quality of performance by company personnel

External auditors may perform in monitoring controls which is common practice for external
auditors to provide lists of specific recommendations for management to improve internal control
(George H.Bodnar Williams Hopwood, 2000).

2.6 The Importance Of Internal Control

The five components of internal control- tee control environment, risk assessment, information
and communication, monitoring and control activities described above provide the auditor with
important information about the risk ofmaterial misrepresentation in financial statements and
fraud. Auditors are therefore, required to obtain sufficient knowledge of the internal controls to
plan their audits. For example, the internal the auditor control in place affect how the auditor will
assess if an organization has reported all of its liabilities. The auditor must understand how
purchase is initiated, processed and recorded. The internal control structure provides this
information and guides the auditor in planning of specific tests to determine the likelihood and
extent of financial statement misrepresentation (James A. Hall 2nd edition).

2.7 Analysis Of Internal Control Process

The analysis of an internal control process requires an understanding of the process both as it is
designed and as it is actually operates. The actual process may or may not perform to
expectations. Documentation may be out dated and the structure may be operating under new
procedures. Internal control procedures rottenly collect information concerning fulfillment of
internal of audits transfer of authorities approval and verification. This documentation of
internal control duties must be examined to evaluate the reliability of the systems operation.
Reliability is dependent on the people who administer internal control processor. Designing an
internal control process is only the first part of problem. It is essential that internal control duties
are actually performed as prescribed (George H. Bodnar, Williiams, Hopwood 2000).

2.8 Banking And Information System

Information system is widely used in the banking sector. This system is particularly appropriate
because banking organization by their nature is information incentive. Information system plays

16

a control role in the service sector that they are called the back bone of service organization the
only thing bankers manufacture is information.
They use and invest the AIS by banking organization are important for two reasons. First, many
customers and bank employees are using this system to manage their money, account and saving
information. Secondly, banking information system is important to enhance effectiveness and
efficiency by improving service delivery and reduce costs. Banking information system input
includes a type of accountants, data and accountants of deposit and withdrawals. Their output
consists of statements, which shows interest paid owed balance and other information. Now a
days people can make

cash withdrawals through information system called automatic teller

machine (ATM). Client can now receive information as system over the phone and through home
computer (Haragus Daniela, 2005).
The importance of accounting information in bank activity
Accounting information allows commercial bank to speculate up on opportunity of attractive
business. In the placements and resource attraction the role of accounting information of bank
management towards successful strategies, by exercising the main functions consecrated by law,
banks generate extremely useful accounting information for both customers and bank
management. The main generating sources of accounting information in bank activity are client
accounts, bank accounts and bank computerized program (which deals both with accounting
data, statistical data and bank management etc).
The classification of bank operations in to active and passive operations underlines the
importance of accounting information the whole bank activity. These bank operations generate
accounting information regarding the attraction and placement of bank resources. In context of
world economy globalization the great banks, which are the agents of the international financial
market fight ferociously for supremacy. Accounting information and transparency of their
accounting system lead banks to success. The role and importance of accounting information in
the bank activity is derived from the role and function of commercial bank themselves. For
exercising their functions banks generate extremely useful accounting information, both for the
bank management and for the client. These functions or operations traditional for the banks
conformed by law generators of accounting information refers mainly to:
17

Accepts deposit from clients

Issue and management of payment and credit
Payment
Fund transfers Transaction in the client account
Mandate operating etc

The classification of bank operation in active and passive depending on the way they are found
in the balance sheet also underline the role and importance of accounting information in the
whole bank activity. Active bank operations generate accounting information regarding the
placement of bank resource (in credits, placement on the interbank market, etc). Passive bank
operation operates accounting information regarding the attraction of resource by the bank (own
capital, deposit for clients etc). Bank accounting information allows the commercial bank to
speculate up on some attractive business opportunities connected to give credit guaranties and
other facilities in favor of performing clients. Also the bank accounting information help banks
in attracting resource in the volume structure and maturities (term) meant to satisfy the
opportunities offered by clients (HargusDanila, 2005).
Resource of bank accounting information and their use
The main resource generating accounting information in bank activities are:
Client accounts which can be available in the bank accounts, current account and stock
account or credit account. In these account the payment instruments, card operations, etc
are registered.
Bank entity accounts which refer specially to cash accounts, current accounts, inter
banking settlement accounts, income and spending accounts of the bank etc.
Accounts outside the bank cash statement, which is reflected in to engage guarantee
records engagement unfolding credit guarantees related to credits claim from current
assets and flowed after wards.
Bank computerized programs, which manage accounting data and statistical data bank
management. In banks the main source for collecting accounting information come from
the front office, client operations and inter and intra banking operations. The type of
accounting information in the bank activity refers to the value of account surplus stock
(initial and final), debt and credit turnover of these accounts, the number of registered
18

account operations and their value of the quantitative structure of accounting operation
averages. All these types of accounting information may exist in raw or advanced form
with the aid computerized programs users of bank accounting information can be;
Internal users: - bank clients and stock holders, office, employees and bank managers.
External users: - client business partners, suppliers and their clients, financial and fiscal
institutions, insurance companies and other banks (Hargus Daniela, 2005).

CHAPTER THREE
METHODOLOGY OF THE STUDY
3.1 Research Methodology
Research methodology is a way to systematically solve the research problem. It may understand
as a science of studying how research is done scientifically (C.R. Kothari 2 nd edition). For the
purpose of this research we have used quantitative (more of quantitative) research methodology.

3.2 Research Design

Research design is an arrangement of conditions for collection and analysis of data in a manner
that aims to combine relevance to the research purpose with economy in procedure. In fact the
research design in the conceptual structure with in which research is conducted; it consists of the
19

blue print for the collection, measurement and analysis of data (C.R. Kothari 2 nd edition). From
different categories of research design studies we have used descriptive research study approach.
This research study was concerned with describing the characteristics of a particular individual,
or a group. Because we choose this study to define clearly what we wanted to measureand to find
adequate methods of measuring it along with a clear cut definition of population we wanted to
study. And also it is simple to obtain complete and accurate information in our study. We have
used more of quantitative research type for our study, because, we have used comparative
percentage in our data analysis method.

3.3 Source Of Data

Primary data (questioner and interview methods) were appropriate for the study and which
would come up sufficient data that was constructive for the study.

3.4 Methods Of Data Collection

Questionnaires were proposed tools for primary data collection method. We have used this
technique to get more data with a short period. Interview was take place from top managers of
construction and business bank.

3.5 Sampling Size and Technique

The target population of the study was 80 employees working in CBB Bahir Dar branch.
Therefore, in order to conduct the study we have used non probability sampling and in such a
way as to collect participants of the whole population. From the non probability sampling the
study would use judgmental sampling method. Because it was very easy to carry out with few
rules governing how sample would be collected and availability of data and it enables us to
freely select any respondents that by considering the respondents would fit the question or not.
As a result, from the total of 80 employees about 30 of them was selected including the two
managers (information system manager and internal control manager) of the bank for interview
which are very crucial in giving information for the study.

3.6 Methods Of Data Analysis

20

After data is being collected, the data would processed on the activity which involves editing,
coding and classifying data to make it suitable for further analysis.Descriptive analysis was
employed. Because we use tables and percentages.

CHAPTER FOUR
DATA ANALYSIS AND INTERPRETATION
4.1 Introduction To Data Analysis
The main purpose of this chapter is to analyze data collected through questionnairesrelated to
AIS of CBB Bahir dar branch. As indicated in chapter three relevant data were gathered through
questionnaires and interview. The questionnaires conducted from CBB employees and interview
for manager.
As clearly stated in chapter three of the paper, the collected data byusing questionnaires are
analyzed through quantitative method of descriptive data analysis, including tables and
21

percentages and qualitative method for interviews. This chapter is organized as follows. Personal
profile of the respondents and general information of the respondents.

4.2 Personal Profile Of The Respondents

In this part of the research paper, the researcher wants to analyze the personal information of
CBB Bahir dar branch employees as follows.
4.2.1Age distribution of the respondents
Table 1 Age distribution
Age
24 and below 24 years
25-54 years
55-64 years
65 and above
Total

Frequency
12
18
0
0
30

Percentage (%)
40
60
0
0
100

(Source: own questionnaire, 2015)

The above table indicates the age structure of the employees of the bank. From this 40% of
respondents are 24 and below 24 years old. 60% of the respondents are 25-54 years old and no
respondents are 55-64 years old and 65 and above. Therefore, from the above table the researcher
concludes that most of the employees from the respondents are young. So this contributes to the
study to update new information than elders and much more flexible to accounting information
system practice than elders because they are at worker stage.
4.2.2 Work experience of the respondents
The data collected from employees in the table below shows that most of them have experienced
in CBB.
Table 2 Experience of employees
Experience

Frequency

Percentage (%)

Below 5 years
5-10 years
11-15 years
Above 15 years
Total

7
14
6
3
30

23.3
46.67
20
10
100

(Source, own questionnaire, 2015)

22

The above table shows the experience of the respondents in the bank. Accordingly about 23.33%
of respondents are below 5 years service, 46.67% of respondents are 5-10 years service, while
10-15 years and above 15 years service are 20% and 10% respectively. Therefore, from the
above table the researcher conclude that 46.67% of the respondents have work experience of 510 years and it has shown the branch has filled with experienced employees.

4.2.3 Educational back ground of the employees

Most of the respondents are graduated in business related field and most of them have BA
degree.
Table 3 Educational back ground of employees
Educational level
MA and above
BA degree
Diploma and continuing to

Frequency
0
24
6

Percentage (%)
0
80
20

BA degree
Below diploma
Total

0
30

0
100

(Source, own questionnaire, 2015)

As shown in the table above it can be concluded that about 80% of the respondents are having
educational back ground of BA degree. And also 20% of the respondents have diploma and
continuing to BA degree and nobody is there having educational level of having MA degree and

23

above and below diploma. In other case, the researcher can infer that the bank is aiming to
maximize their customer by employing BA degree which has good educational level.

4.3 General Questionnaires To Employees Of CBB In Bahir Dar Branch

4.3.1 Information system department gives necessary training to its employees how to
practice AIS.
Table 4 Information system department gives necessary training to its employees
Level of agreement
Agree
Strongly agree
Disagree
Strongly disagree
Neutral
Total

Frequency
18
12
0
0
0
30

Percentage (%)
60
40
0
0
0
100

(Source, own questionnaire, 2015)

As shown in the above table, 60% and 40% of respondents replied the training program
performed semi annually and this shows the training program which is given for employees
about AIS practice is performed twice a year. Therefore, this indicates the existence of effective
training program for employees.
4.3.2 The bank updates new information system.
Table 5 the bank updates new information system
Level of agreement
Agree
Strongly agree
Disagree
Strongly disagree
Neutral
Total

Frequency
24
6
0
0
0
30

Percentage (%)
80
20
0
0
0
100

(Source, own questionnaire, 2015)

As shown in the above table,80% of the respondents agree that the bank updates new information
system annually whereas 20% of them agree that the bank updates new information system
semiannually.

24

This shows the updating program which is given for employees about AIS is performed once a
year. This does not indicate the existence of effective updating program for employees.
Generally, the existence of updating program about AIS for employees is to some extentgood but
in its performance and accomplishment it is difficult to consider it as sufficient and normal.

4.3.3 Major factors that hinder the practice of AIS and internal controls

Accounting information

Neutral%

Disagree %

Strongly disagree %

Agree%

Strongly agree%

Table 6 major factors that hinders the practice of AIS in internal control
Total
NO

Percen
t%

33.33

66.67

30

100

86.67

13.33

30

100

system is practiced in

internal controls.
Preparation of financial
statements to administer
internal control depends
on AIS practice.

(Source: own questionnaire, 2015)

As shown in the above table, it can be concluded that about 66.67% of the total respondents said
that disagree to AIS practiced in internal control of the organization and the remaining 33% of
respondents are agree that AIS is practiced in internal control of the organization..From this we
can conclude that AIS is not well practiced due to different factors.
25

Factors that hinder AIS practice

In todays interrelated global economy, AIS is highly practiced using computer programmes in
those fast developed countries but it is difficult for those developing countries to operate AIS
with sophisticated machine. This is the fact that when the organization is become more
dependent on AIS the need for information becomes complex and they face a growing risk of
their system being compromised. Those factors that hinder AIS practice are the following:

Lack of skilled man power in AIS application

Lack of technological advancement
Limited available resource and
Lack of effective training for employees

As shown the above table, it can be concluded that also 86.67% of respondents were agree and
13.33% of the respondents were strongly agree that preparation of financial statements to
administer internal control depends on AIS and no one disagrees about its dependence.
Therefore, Preparation of financial statements can administer internal control and every
transaction undertaken by this bank is included and used to administer and control every assets
of the bank.
4.3.4The top management of CBB faces budget constraint for AIS practice.
Table 7 the top management of CBB faces budget constraint for AIS practice
Level of agreement
Agree
Strongly agree
Disagree
Strongly disagree
Neutral
Total

Frequency
23
7
0
0
0
30

Percentage (%)
76.67
23.33
0
0
0
100

(Source, own questionnaire, 2015)

From the above table, the inference can take that 76.67% of the total respondents strongly agree
that there is budget constraint at the midterm of the budget year. Whereas 23.33%the employees
agree that there is budget constraint at beginning the budget year. From this we can conclude that
top management faces budget constraint while practicing accounting information system in
internal control.
26

4.3.5 The internal control auditor discovers errors and frauds in activities of
employees while practicing AIS.
In todays world more and more organizations depend up on information technology to process
business information electronically. With the increasing complexity of business operation and the
need for information, AIS are most important to effective decision making for both internal and
external parties.And also AIS have a great role in reducing risks of errors, frauds and other illegal
acts. Now a days most of business organizations including CBB uses computer based AIS in
order to discover and reduce the risk of error and fraud
Table 8 the internal control auditor discovers errors and frauds in activities of employees

The internal control

Neutral %

Disagree %

Strongly disagree %

Strongly agree %

NO

Agree

while practicing AIS

Total
NO

Percent
%

10

90

30

100

20

80

30

100

auditor discovers errors

and frauds in activities
of employees

There is a relation ship

between recording
accounting activities
and computerized AIS

(Source, own questionnaire, 2015)

The above table summarized that the total respondents agree that accounting information system
practice can discover and reduce the risk of errors and frauds in activities of employees while
practicing AIS. And the internal control auditor discovers errors and frauds openly and
sometimes by openly and secretly. Additionally as seen in the above table 80% and 20% of the
respondents think that there is a link between their accounting work and computerized AIS. In
27

addition the employees are able to use computer very well and this enables the internal control
auditor to discover errors and frauds easily.
The responses from the managers of CBB Bahir dar branch are stated in the following
description. In todays world more and more organizations depend up on information technology
to process business information electronically. According to the information system department
manager, response the bank has practiced more of computerized accounting information system
and it benefits the bank and employees in such that:
Computerized AIS are more accurate form than manual system.
Computerized AIS simplifies the record keeping process, transactions are recorded in
electronic forms and to reduce errors.
Computerized AIS provides relevant information for decision making.
And computerized AIS also provide opportunities for the bank to enhance its internal
control.
The above mentioned benefits enable employees to save time and customers can obtain accurate
information about the banks performance. In addition to that the practice of computerized AIS is
a key element for internal control of CBB by reducing mistakes and errors, by providing reliable
accounting information in the fields of recording, storing, processing, reporting, interpreting and
communicating those important facts (source: own interview, 2015).
4.3.6 The contribution of AIS practice in customer attraction and its relevance in
decision making and financial reporting.
CBB fully relies on the accounting information to make decision on different operations which
needs different accounting information. All in all, there is no decision without information.
Accounting information plays a great role in decision making. There are many activities
performed under many departments. Activities performed under those departments are used as
accounting information or raw data to process reliable financial reporting for the bank.

28

Table 9 contributions of AIS practice in customer attraction and its relevance in decision

Accounting information

Never%

Possibly%

Probably%

Certainly%

making and financial reporting

Total
NO

Percent
%

100

30

100

90

10

30

100

system uses to make reliable

decision.
Accounting information
system uses for financial
reporting.

(Source: own questionnaire, 2015)

The table reveals that, all of the respondents are certain on the accounting AIS ability to provide
relevant, reliable and timely accounting information. According to the respondents the AIS play a
role in making the information useful, understandable, timely and pertinent for effective decision
making. So the CBBs AIS is designed in the way it is consistent with aims of the bank. Because
it is a system to collect and process data from transaction and event, organize them in a useful
forms and communicate results to decision makers. And also from the above table it can be
generalized that respondents who has been giving an option of this view, about 90% of the
respondents are certain that AIS has contribution to process financial reporting and the other 10%
of the respondents are not sure so the bank has to give awareness for the employees that how AIS
and financial reports are inter dependent to each other.
According to the internal control department managers of construction and business bank Bahir
dar branch, accounting information system departments and internal control department
managers controls are to ensure that employees are doing their jobs properly and ensure that the
system runs properly. As the system becomes computerized, the internal control for that system
has to be adopted accordingly. And also the practice of effective AIS in the bank is a means for
customer attraction. This implies that when the bank practices effective and computerized AIS

29

and effective internal control system customers are satisfied by the banks performance and this
is a means for new customers (source: own interview, 2015).

CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1Summary
Based on detail analysis and interpretation made in the preceding chapter (chapter 4), the study
for assessment of accounting information system practice in internal control of construction and
business bank Bahir dar branch is summarized as follows:
Information system department provides training for employees more of semi
annually.
The bank updates new information system more of annually.
Mostly AIS is not well practiced in internal control of the organization.
Mostly preparation of financial statements to administer internal control depends on
AIS.
The top management of CBB faces budget constraint mostly at the mid term of the
budget year.
AIS is a means for reliable decision making and financial reporting.
There is a higher link between accounting activities and computerized AIS.

5.2 Conclusion
Accounting information system is one of the most important functions of an organization for
measuring and evaluating the effectiveness and efficiency of its internal control and financial
activities. The main concern of this paper is to find those factors that hinder AIS practice and
obstacles for the implementation of AIS in construction and business bank of Bahir dar branch
after the assessment is conducted and all necessary information are gathered the researcher
arrived at the following conclusions.

30

 There is effective training program for employees to practice accounting

information system.
The bank updates new information system. But the bank updates more of once a
year and this does not indicate the existence of effective updating program.
There is a budget constraint while practicing accounting information system in
internal control.
The internal control department discovers errors and frauds in activities of
employees openly and secretly and there is a well relation ship between recording
accounting activities and computerized accounting information system.
Accounting information system is used to make reliable decision and for reliable
financial reporting in CBB.
Preparation of financial statements can administer internal control and every
transaction undertaken by CBB is included and used to administer and control
every assets of the bank.
The bank uses computerized accounting information system and this makes the
bank to attract customers and both the internal control department and
information system department are always done together for efficient and
effectiveness of internal control and for the banks satisfaction.
There are various factors that hinder AIS practice in CBB.Among those some of
the most common factors are lack of skilled man power, lack of
technologicaladvancement of the bank, limited available resources and lack of
effective training for employees.

5.3 Recommendation

31

This part contains some significant possible solutions of the researcher .Based on the study
conducted the following necessary points are recommended as a solution for AIS practice
problems in CBB.
There are some unqualified employees those who are working by experience.
To operate more efficiently, those workers should get adequate training by
professionals those who have the concept of accounting information system.
The bank should up date new information system when it is necessary.
There must be adequate motivational factor for employees on the basis of their
job performance in order to make them more effective and well experienced
employees.
For an appropriate and effective AIS practice the management of CBB should
give adequate training to those employees who have no accounting
information system knowledge, CBB should provide sufficient available
resource and improve technological advancement.

REFERENCE
C.R Kothari, Rsearch methodology methods and techniques, 2nd edition
32

George H. Bodnar Wiliams, Hopwood, Accounting information system, 2000

Harangus Daniela, Accounting information in bank activity, 2005
James A. Hall, Accounting information system, 2nd edition
John A. Christensen, Joels Demskl, Management information system, 5th edition
Kermit D. Larson, Fundametal Accounting Principle, 15th edition
Lehman Brothers, Surbanes Oxlely Act World com. Accounting Book keeping
Mahadi Salehi, International journal of economics and finance, 2010
Marshal B. Romney, Accounting information system, 2009
Muneesh Kumar, Business information system, 1998, Vikas publishing house PVT LTD
Robert K, Eskew, Financial accounting, 5th edition, 1996, United States of America
Romney, Marshal B, Paul Jhon and Hall, Accounting information system, 2nd edition, 2009
S.K Bahattachery Accounting for management, 1975
Whittington Pany, Principle of Auditing 9th edition

33

BAHIR DAR UNIVERSITY

FACULITY OF BUSINESS AND ECONOMICS
DEPARTEMENT OF ACCOUNTING AND FINANCE
We would like to express heartfelt appreciation in advance for your cooperation. The purpose of
these questionnaires is to get information for the assessment of accounting information system
practice in internal control of the study.

Directions

Put the check mark X in the box of your choice.

Your response could be kept confidentially.
No need to write your name.
You can use extra paper for your additional information.
Please return it as earlier as possible.

Profile of the respondents

1. Sex
2. Age

Male

24 and below 24 years

55-64 years

Female

25-54 years

65 and above years

3. Work experience
Below 5 years

11-15Years

5-10 years

above 15 years

4. What is your level of education?

MA and above

34

BA degree

Diploma and continuing to BA degree

Below diploma

General questions
1. The information system department gives necessary training to its employees how to
practice accounting information system.

strongly agree
Disagree strongly disagree
Neutral
Agree

2. If your answer in Q No 1 is agree how often the training program is performed?

Monthly

Annually

Quarterly

Semiannually
3. The bank updates new information system.

Disagree
Neutral
Agree

4.

strongly agree

strongly disagree

If your answer in Q No 3 is agree when?

Weekly

Monthly

Quarterly

Semi annually
annually
5. Accounting information system is practiced in internal control of the organization.

Strongly agree
Disagree Strongly disagree
Agree

35

Neutral

6. If your answer in Q No 5 is disagree what factors affect the AIS practice?

Lack of skilled man power

Lack of technological advancement

Limited available resource

Lack of effective training for employees

All

7. The top management of CBB faces budget constraint for AIS practice.

Disagree
Neutral
Agree

Strongly disagree
Strongly agree

8. If your answer in Q No 7 is agree when?

At the midterm of the budget year

At the end of the budget year
At the beginning of the budget year

36

9. The internal control auditor discovers errors and frauds in activities of employees while
practicing AIS.

strongly agree
Disagree strongly disagree
Neutral
Agree

10. If your answer in Q No 9 is agree in what way?

Openly
secretly
both openly and secretly
11. Does accounting information system used to make reliable decision?

Possibly
Certainly

Probably

Never
12. Does accounting information system used for reliable financial reporting?

Possibly

Never

Certainly

Probably

13. The preparation of financial statement to administer internal control depends on

accounting information system practice.

strongly agree
Disagree
strongly disagree

Agree

neutral

14. If your answer in Q No 13 is agree how?

Strongly

partially

weakly

15. There is relationship between recording of accounting activities and computerized

accounting information system.

strongly agree
Disagree strongly disagree
Neutral
Agree

16. If your answer in Q No 15 is agree are you able to use computer very well?
37

Yes

No

Interview
A. Interview with information system department manager (ISDM)
1. What type of information system do you have?
2. What are the benefits of information system practice to the bank and in what way it
benefits the employees and customer of the bank?
3. In what aspect the accounting information system practice affect internal control?
B. Interview with internal control department manager (ICDM)
1. What is the relationship between accounting information system and internal control
in your department?
2. What is the effect of accounting information system practice in customer attraction?

Gender distribution of the respondents

The data collected from the employees shows that most of them are male.
Table Gender distribution
Gender
Male
Female
Total

Frequency
6
24
30

Percentage (%)
20
80
100

Source, own questionnaire, 2015

The above table shows the gender distribution of the respondents in the bank. From this gender
distribution of respondents 80% of the respondents are males while 20% of respondents are

38

females. From this distribution males are greater as compared to female respondents. Therefore,
the most dominance employees are male in CBB bank.

39

40

41

42