Proposed Accounting System For Greenlight Cocnut Products Philippines Corporation
Proposed Accounting System For Greenlight Cocnut Products Philippines Corporation
ABSTRACT
Document Code: DCAVRKMI-F-URFR
MANUEL S. ENVERGA UNIVERSITY FOUNDATION
Lucena City Document Title: Undergraduate Research Final
An Autonomous University Report
Page No.: Page 3 of 25
DR. CESAR A. VILLARIBA RESEARCH AND Revision No.: 0
Effectivity Date: August 2017
KNOWLEDGE MANAGEMENT INSTITUTE
Prepared by: DCAVRKMI
QUALITY FORM Reviewed by: QMR
Approved by: President
TABLE OF CONTENTS
Page
Title Page........................................................................................................................1
Table of Contents............................................................................................................4
Abstract...........................................................................................................................2
Rationale of the Study.....................................................................................................5
Purpose of the Research................................................................................................7
Theoretical Framework...................................................................................................8
Literature Survey...........................................................................................................10
Significance of the Research........................................................................................17
Definition of Terms.........................................................................................................18
Scope and Limitations of the Study..............................................................................19
Statement of Desired Outcomes...................................................................................20
Research Design...........................................................................................................20
Research Instrument.....................................................................................................21
Data Gathering Procedures..........................................................................................21
Respondents.................................................................................................................22
Sampling Design and Procedures................................................................................22
Hypothesis.....................................................................................................................22
Data Analysis Plan........................................................................................................22
Conceptual Framework.................................................................................................24
References....................................................................................................................25
Document Code: DCAVRKMI-F-URFR
MANUEL S. ENVERGA UNIVERSITY FOUNDATION
Lucena City Document Title: Undergraduate Research Final
An Autonomous University Report
Page No.: Page 4 of 25
DR. CESAR A. VILLARIBA RESEARCH AND Revision No.: 0
Effectivity Date: August 2017
KNOWLEDGE MANAGEMENT INSTITUTE
Prepared by: DCAVRKMI
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Technology has been continuing to dominate the world and has been always
and machines, are important to guarantee that the operation of businesses runs
smoothly and efficiently. It has made a large impact on many areas in businesses like
it will lead to certain competitive advantages in terms of costs, savings, reducing the
invest technologies to ensure that they are up to date to the latest trends. These
changes stirred the improvement of accounting methods, functions, and other related
Systems, such as ERPS and e-business, requires auditors to evaluate the reliability of
programs and their outcomes. This is relevant since the auditor’s judgment influences
associated with a number of benefits like speed of carrying out routine transactions,
timeliness, quick analysis, accuracy, and reporting (Genil & Valencia, 2013).
has a significant effect on the auditing process done by auditors. This inspired the
researchers to conduct a study wherein they will investigate the efficiency of applying
Computerized Accounting Systems on auditing and determine the problems that may
The purpose of this research is to gain understanding about the efficiency of the
companies situated in Lucena City. Specifically, this study aims to answer the following
objectives:
accounting system.
4. Establish significant difference on the assessment of respondents in the impact
characteristics.
5. Draw appropriate recommendations based on the result of the study.
Theoretical Framework
Wang (2005) refers to information in the sense that assuming information does not
necessarily involve any conscious mind, and patterns circulating (due to feedback) in
the system can be called information. In other words, it can be said that information in
related and interacting components, which work together to achieve a desired purpose
or set of objectives.
to ensure that the procedure gives the anticipated level of outcome and dodge or
decrease waste. The need for efficiency and effectiveness called out further need of
ensuring harmony and cooperation between the human resource as the core resource
that controls other resources on the one hand and the other tools of trade, in particular
modern ICT on the other hand so as to realize the objectives of office secretarial
management. Hence, there is a need to clearly understand the perception and attitudes
of human resource and other areas which are open and potential to any conflict in the
course of interaction between the human resource and modern ICT. When computer
system called “Infotech.” Information Technology is a general term that describes any
noted that the use of computers and information are associated (Wang, 2005).
Internal Control
Systems
Security
Measures
Good Computerized
Documentation Accounting Efficiency of
System Audit Process
Separation of
Operation from
Accounting
Adequate
Disclosure
Cost
Effectiveness
Literature Survey
should be noted that keeping accurate accounting records is a vital part of any
organization. Apart from helping it to keep its float financially and legal, it is a
equipments, specialized and skilled workforce which may raise the overall cost for an
organization but sufficiently provides information as and when required. Sofat (2016)
stated that hardware, software, and human capabilities are components that form the
computer disk drivers, cables, mouse, ports, monitors, printers, networks, ethernet, and
internet that connect them. Softwares are a set of programs that case the computer to
perform the desired work. It allows one to edit and store transaction data and generate
reports that managers use in order to run the business and take important decisions.
Lastly, human capabilities are the people who work on the computer accounting system
Yona (2013) stated that the computerized accounting system is a system that
uses computer softwares to process accounting data and information. This means that
all accounting process is integrated in software that can perform all accounting
processing functions. It follows the same process as the manual accounting systems.
This means that in this system, there are still the same stages of input, processing, and
output as in the manual accounting system. At the input stage, there will be data entry of
all business transaction and then the computer software will process the data and post
Document Code: DCAVRKMI-F-URFR
MANUEL S. ENVERGA UNIVERSITY FOUNDATION
Lucena City Document Title: Undergraduate Research Final
An Autonomous University Report
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them to respective ledger accounts and then at the output stage, various reports are
Cohen & Sayag (2010) conducted a study about the effectiveness of internal
determine the determinants in Israeli organizations. Their findings showed that the
independence, top management, and the sector which an organization belonging to are
not determined as the factors which can affect the effectiveness of audit in a
computerized environment.
Sudsomboon & Sriwichien (2010), on the other hand, investigated the effects of
audit pressure on audit process efficiency and audit report effectiveness conducted in
Thailand. The findings revealed that knowledge of the computerized accounting system,
risk assessment competency, and quality planning judgments affect the audit
judgments are the key factors which can affect the audit effectiveness in a computerized
environment.
minimizes the errors and allows easy posting of transactions on ledgers. The financial
reports that the firm generated are reliable. The firm was also able to maintain the
financial reporting qualities such as timeliness, reliability, and accuracy when applying
Kombo’s (2013) study was adapted from the research of Sudsomboon &
Sriwichien (2010). Based from his findings regarding the factors affecting effectiveness
and efficiency of auditing process in computerized accounting system, results show that
knowledge of computerized accounting system and quality of audit planning are the
factors that can affect the audit effectiveness in computerized accounting system in
local government authority. This conforms the findings of Chaveerug, A. (2011). Risk
assessment competency, on the other hand, is not a factor affecting audit effectiveness.
information that can also be maintained if there is sound internal control system in an
organization. Internal controls are procedures set up to protect assets, ensure reliable
Internal controls are essential to achieve some objectives like efficient and orderly
management policy, prevention of error and detection of error, prevention of fraud and
management can use information with greater reliance to maintain their business
activities properly which provide AIS. But if internal control is not strong, management
Furthermore, Neogy (2014) also stated that there are certain criteria or indicators
efficient in any organization which is: cost effectiveness, good documentation, existence
Romney & Steinbert (2015) stated that developing an internal control system
and system developers help management achieve their control objectives by (1)
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MANUEL S. ENVERGA UNIVERSITY FOUNDATION
Lucena City Document Title: Undergraduate Research Final
An Autonomous University Report
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systems and detect, correct, and recover from threats when they occur, and (2) making
it easier to build controls into systems at the initial design stage than to add them after
the facts. They also pointed out three important functions performed by internal control:
(1) Preventive controls which deter problems before they arise. (2) Detective controls
which discovers problems that are not prevented. (3) Corrective controls which identify
and correct problems, as well as correct and recover from the resulting errors. But,
Ramly (2011) pointed that there are still many factors that can affect the efficiency and
software, and hardware and databases. Thus, if one may consider an efficient and
Over the past few decades, there has been a big shift from manual to automated
accounting systems. In work-life workers may never have to make a pencil entry into a
sales journal again, but it is vital to understand how double entry systems and the flow
of data through manual system work. However, the world faces a modern technology
civilization where many things works with the help of computers. Therefore there are
some errors and problems happened in using the manual system: It takes much time,
resources and effort in large organizations, and even time-consuming (Joseph, 2013).
sensitive data in paper ledger and journals. This may allow employees to abuse
An absent of decimal point or the addition of one to many zeroes can alter the accuracy
accurate, easy to use, provides a series of security measures, and lets companies
easily analyze their financial statements. Yet, applying the computerized accounting
system is expensive. Even with the security measures the accounting software
provides, computer systems can still be hacked and data can be compromised.
Additionally, although computerized accounting systems can cut down a large number
system in Jordanian banks, the reasons, and the ways of preventing such risks. The
Document Code: DCAVRKMI-F-URFR
MANUEL S. ENVERGA UNIVERSITY FOUNDATION
Lucena City Document Title: Undergraduate Research Final
An Autonomous University Report
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DR. CESAR A. VILLARIBA RESEARCH AND Revision No.: 0
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training on how to protect accounting systems prior to resuming their jobs and lack of
effective recruitment processes for accounts executives. Resulting from this, employees
Malami, Zainol & Nelson (2012) examined the banking industry system in
Malaysia. Results showed that the major threats challenging the computerized
Murungi & Kayigamba (2015) found out that there are several inefficiencies that
were identified that could hinder the smooth running of the entire financial system in the
system maintenance, inadequate on-job training for accounting and staff, and weak
internal audit.
Pogribna & Nikitenko (2015) added that using a computerized accounting system
comes with its own set of problems such as the need to protect against data loss
through power failure or viruses and the need danger of hackers stealing the data.
Computer fraud is also a concern, and one should need to instigate a system of controls
for those who have access to the information. If there is a presence of security breach
Document Code: DCAVRKMI-F-URFR
MANUEL S. ENVERGA UNIVERSITY FOUNDATION
Lucena City Document Title: Undergraduate Research Final
An Autonomous University Report
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DR. CESAR A. VILLARIBA RESEARCH AND Revision No.: 0
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and data has been compromised, management can be held personally liable for the
loss of data.
Accountants and Auditors. The study will help them to improve their knowledge
and competence about the latest trends of computerized accounting system in the
auditing process.
Private companies and other government organizations. The results can help
them to make adjustments in any flaw that may encounter in applying computerized
accounting system and rectify any weaknesses encountered to pave way for the
Software developers. The study will help them to be more aware about how the
developed accounting softwares and packages can affect the audit process and
Researchers. The study will help them to have further knowledge about auditing
Future researchers. The results and findings presented in this study may be
used as a reference in conducting new related researches or test the validity of this
Definition of Terms
Cost Effectiveness - Something that is a good value, where the benefits and usage are
as explanation for activities which have significantly influenced the entity's financial
results.
Internal Control – These are procedure set up to protect assets, ensure reliable
Security Measures – These refers to safeguarding the asset of a firm, protection from
system in selected private companies situated in Lucena City. The research topic is
considered to be broad and it included all private companies that maintain computerized
accounting records which are being audited. The researchers chose Lucena City as the
location of the study to represent other private entities that uses computerized
During the conduct of this study, it is already expected that some documents or
records from private companies cannot be simply accessed since they were confidential
Document Code: DCAVRKMI-F-URFR
MANUEL S. ENVERGA UNIVERSITY FOUNDATION
Lucena City Document Title: Undergraduate Research Final
An Autonomous University Report
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DR. CESAR A. VILLARIBA RESEARCH AND Revision No.: 0
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to be retrieved and to be released for the researchers. The researchers also anticipated
that not all study procedures will be executed due to time constraints.
The research output will provide the auditors, researchers, students, researchers
accumulate results presenting the importance of knowing the internal control system,
of the auditor in carrying out the auditing process. The problems encountered in auditing
process would also be cited in the findings, thus, it would be useful and beneficial not
only for students but also auditors and business professionals in forecasting and
decision-making.
Research Design
of the variables in the research study. Descriptive research is carried out to describe
Moreover, the chosen method enables the researchers to assess the relationship of
information system. Also according to Wilson (2014), descriptive studies tend to provide
accurate information, and help to form the basis of simple decision-making by setting
out to provide answers to who, what, when, where and how questions.
Research Instrument
set of questions designed to generate data suitable for achieving the objectives of a
research project, which can be used to gather both qualitative and quantitative data
convenient to administer, and will provide accurate and relevant data to the study.
The questionnaire has five sections. The first part is about the profile or nature of
the business; the second part is about the performance of the computerized accounting
system; the third part is about the perception of auditors on the efficiency of
computerized accounting system in the audit process; the fourth part contains the
part pertains to the respondent’s opinion whether their skills and competence can affect
The instrument is structured using the Likert Scale based from their level of
selected samples since the researchers' focus is to assimilate the perceptions and
the researchers correlated the collected data from existing literatures of the related
subject. Secondary data will be used if the findings require further validation.
Lucena City. The researchers chose auditors as their respondents considering that they
are the one who carry out the auditing procedures in a manual or computerized
environment.
Hypothesis
The data gathered from the respondents will be tallied, summarized, and
interpreted by using descriptive statistics of weighted average mean. The data will be
presented in tables and graphs. The obtained weighted average mean will be used in
Conceptual Framework
Business Profile
Impact of
Computerized
Accounting System Survey
Questionnaires
Statistical Tools Efficiency of CAS on
Audit Efficiency Analysis, Evaluation, Audit Process
Factors and Interpretation of
Data
Problems of
Computerized
Accounting System
The model used in the formulation of the conceptual paradigm is the IPO (Input,
Process, and Output) Model. The input used by the researchers are the demographic
profile of the business, the impact of using the Computerized Accounting System in the
audit process, factors affecting the efficiency of the audit process, and problems that
the survey questionnaires to gather the results. The output of the research is concerned
Document Code: DCAVRKMI-F-URFR
MANUEL S. ENVERGA UNIVERSITY FOUNDATION
Lucena City Document Title: Undergraduate Research Final
An Autonomous University Report
Page No.: Page 24 of 25
DR. CESAR A. VILLARIBA RESEARCH AND Revision No.: 0
Effectivity Date: August 2017
KNOWLEDGE MANAGEMENT INSTITUTE
Prepared by: DCAVRKMI
QUALITY FORM Reviewed by: QMR
Approved by: President
with the efficiency of Computerized Accounting System in the Audit Process in selected
REFERENCES
Cohen, A., & Sayag, G. (2010). The Effectiveness of Internal Auditing: An Empirical
Examination of its Determinants in Israeli Organisations. Australian Accounting
Review, 20(3), 296-307.
Malami, A., Zainol, Z., & Nelson, S. (2012). Security Threats of Computerized Banking
Systems (CBS): The Managers’ Perception in Malaysia. International Journal of
Economics and Finance Studies, 4(1), 21-30.
Racaza, C. & Evangelista, R. (2011). Auditing Theory for Students & Practice Guide for
Auditors. Manila, Philippines: GIC Enterprises & Co., Inc.