The Effects Of Integrated Computerized Accounting Practices On Ensuring Effective Financial Controls Of Supermarkets In Kisii County, Kenya

Abstract

Integrated computerized accounting practices (ICAP) were facing the challenges of unauthorized access, alterations and destruction of data thus compromising the confidentiality, integrity and availability of financial information. The research evaluated the effects of ICAP on ensuring effective financial controls of supermarkets in Kisii county, Kenya. The four objectives of the study were; to determine the effect of integrated financial operations on the internal control procedures (ICP) of supermarkets in Kisii County, to determine the effect of operating segments information on the ICP of supermarkets in Kisii county, to determine the effect of computerized integrated accounting on the ICP of supermarkets in Kisii county, and to determine the effect of consolidated financial reporting transactions on the ICP of supermarkets in Kisii county. The findings of the study are helpful to managers of supermarkets in acquiring the ICAP to enhance the internal controls, developers of accounting softwares in programming software that meets the needs of the supermarkets and future researchers as it forms the basis of future researches. The study used descriptive survey designs on a target population of the 24 comprising of managers branch managers, branch supervisors and branch accountants of the supermarkets in Kisii county. A census method conducted where 21 responded to the closed ended questionnaire used to collect data. The questionnaire was reliable with a Cronbach alpha of 0.759 and the fitness for model was significant at 0.003 tested using ANOVA. The data was analyzed through descriptive and inferential statistics with the aid of SPSS version 22.0 and presented using tables & figures. Descriptive methods used were mean and standard deviation. The inferential statistics used include multivariate regression analysis to test the model fit and correlation analysis. The hypothesis were tested using t-test for a significance level of ±5 at a degree of confidence of 95%. The findings of the study showed that IFO, OSI, CIA, and CFRT were significant on the ICP. The study concluded that cash management was the most integrated financial operation, categorization of products and services was the most used method of segmentation, financial accounting transactions were the most computerized branch of accounting, and subsidiaries transactions were the most consolidated financial reporting transactions. The researcher recommended the supermarkets to integrate financial transactions relating to baking of cakes and breads, improve segmentation based on service delivery, computerize fund accounting transactions and consolidate accounting transactions for assets jointly held in partnership with other organizations.