Accounting Project Topics

The Impact of Accounting on Organization Effectiveness: A Case Study of the Federal Pay Office

The Impact of Accounting on Organization Effectiveness a Case Study of the Federal Pay Office

The Impact of Accounting on Organization Effectiveness A Case Study of the Federal Pay Office

Chapter One


The objectives of the study are to;

  1. Examine the role of accountants in ensuring accountability of public fund.
  2. Examine the extent to which relevant accounting officers adhere to the laid down accounting principles.
  3. Investigate if the authorities entrusted with fund disbarment comply with the financial regulations.




Our focus in this chapter is to critically examine relevant literatures that would assist in explaining the research problem and furthermore recognize the efforts of scholars who had previously contributed immensely to similar research. The chapter intends to deepen the understanding of the study and close the perceived gaps.

Precisely, the chapter will be considered in four sub-headings:

Conceptual Framework

Review of related literature

Theoretical Framework

Empirical Review and

Chapter Summary



The emerging global economic development that is characterized by rapid changes in production processes, development in information technology (hereafter IT), fierce market competition, increased sophistication of consumers and unethical manipulative activities of businesses in the drive to ensure the complex and unpredictable business dynamics has brought to the fore the critical role of Accounting Information Systems

(hereafter AIS) in the economic and business discourse, especially as it relates to management effectiveness (Curtis 1995).

AIS is a tool that uses the IT component to help in controlling the economic-financial activity of an organization. However, increased advancements in IT have made it possible for organizations to use this option for a strategic standpoint (Louadi 1998). Therefore, several authors argue in favor of the importance of AIS for an organization (Wilkinson et al. 2000; Wilkinson 1993; Rahman et al. 1988; Curtis 1995; Borthick and Clark 1990) and hence the need to maintain it in every organization, whether profit-oriented or non-profit oriented (Wilkinson et al. 2000). AIS are not just a component for recording financial data, but a whole component which collects raw data and then transforms this common data into useful financial information for the policymakers (Salehi, Vahab & Abdolkarim 2010).

For a better understanding of the AIS, three words of AIS are elaborated separately. The first is “accounting,” which is a language of business, which records all the financial or monetary transactions (Wilkinson 1993). Second is “information,” which is the processed form of all financial transaction data used by decision makers. Lastly, according to Thomas and Kleiner (1995) and Bhatt (2001), is “system,” which is an integrated entity that focuses on the set of objectives.

There is an argument in accounting literature that AIS leads to the strategic success of an organization (Langfield-Smith 1997). A study conducted by Bouwens and Abernethy (2000) have analyzed the role of AIS in strategic management decisions, and they have also examined the attributes of AIS about different strategic priorities. It has also been observing the impact of AIS on the firm’s performance by considering the various designs of AIS on the different strategies.

According to Chenhall (2003), different designs of AIS support different organizational strategies, which increase the organizational performance (hereafter OP). Increasing investment in the AIS makes the corporate culture more flexible and stronger, which enables the organization to face changing business environmental conditions. Innovation brings the ease to organizational processes and makes the performance better by reducing the obstacles in these processes, which also leads to possible access to capital markets. AIS is a system which uses the financial data of an organization, but it also combines the accounting techniques and controls along with different methodologies by using IT to track the external and internal reporting data, financial statements and trend analysis, and thus to impact on the performance of an organization (Grande, Estebanez & Colomina 2010).

Knowledge of managers in developing high-quality information systems (hereafter IS) is crucial (Abdipour 2011; McLeod & Schell 2007). Moreover, Laudon and Laudon (2005) argue that the implementation of AIS is significantly related to the knowledge of managers. Since managers are the personnel who have a better understanding of the needs of businesses and do consider the needs of the business, they can better decide on appropriate AIS for the organization (Ismail 2009). Moreover, it is further argued that knowledge of the manager about the IT is very crucial because managers use this knowledge for the survival and prosperity of a company (Laudon & Laudon, 2005). Usually, the knowledge of executives is comprised of computer application programs, the internet, email, database, spreadsheet, word processing, financial and managerial accounting. This enhances the effectiveness of AIS. As Ismail and King (2007) state, the knowledge of the manager about more sophisticated software contributes to the increased efficiency of AIS.

Jarvenpaa and Ives (1991) and Hussein et al. (2005) argue that top management support (TMS) is also considered as imperative in determining the quality of AIS and implementation of AIS in the organization, as top management support increases the quality of AIS (Lerwongsatien & Wongpinunwatana 2003; Thong & Yap 1995). This support could be in different forms, e.g., it could be in the form of commitment to align organizational strategies (Jarvenpaa & Ives 1991). Moreover, it can also be in the form of participation in supporting the employees for building a constructive attitude towards the usefulness of IS. Furthermore, it could be the administrative authority’s surety on the availability and the appropriateness of the resources for implementation of AIS (Guinea et al. 2005).





In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.


Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.


According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitute of individuals or elements that are homogeneous in description.




This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of sixty seven (67) questionnaires were administered to respondents of which fifty (50) were returned and all were validated. For this study a total of  50 was validated for the analysis.




This chapter summarizes the findings on the impact of accounting on organisation effectiveness using federal pay office, Enugu State as case study. The chapter consists of summary of the study, conclusions, and recommendations.

 Summary of the Study

In this study, our focus was on the impact of accounting on organisation effectiveness using federal pay office, Enugu State as case study. The study is was specifically focused on examining the role of accountants in ensuring accountability of public fund, the extent to which relevant accounting officers adhere to the laid down accounting principles, and investigating if the authorities entrusted with fund disbarment comply with the financial regulations.

The study adopted the survey research design and randomly enrolled participants in the study. A total of 50 responses were validated from the enrolled participants where all respondent are staff of federal pay office, Enugu State.


In the light of the observation and discussions carried out on the impact of accounting on organisation effectiveness, the following conclusions were drawn.

  1. Accounting officers adhere to the accounting principles.
  2. Accountants play a significant role in ensuring accountability of public fund.


Based on the findings the researcher recommends that;

  1. Accounting body used to coordinate the accounts of all the agencies of government (corporations and parastatals) at all level should be established to achieve prudent management of available but limited resources so that accountability and probity as the watch word will be maintained.
  2. Accounting bodies should ensure that there is enough publication to enhance public perception of the function to be discharge by the professionals in accounting field.
  3. The regulators of the financial accounting practices should ensure that public organizations adhere strictly to the accounting rules.
  4. An international set of accounting system is recommended for a developing nations like Nigeria to enable her adopt rules and regulations that will enhance her internal accounting system.
  5. Public Sector account system must be securely monitored to ensure that accountancy/accounting system in the public sector is effective and adequate, provide for proper financial control and accountability of stewardship and provide useful information for the effective control and management of government operations.


  • Abdipour, M.S.A 2011, A study of the barriers to implementation of Accounting information system: Case of listed companies in Tehran Stock Exchange.
  • Admon, K. and Schmidt, G. (1977); Profit Measurement During Inflation, Avilla Inter Science Publication New York.
  • Alexander, D. and Britton, A. (1996); Financial Reporting, International, Thomas Business Press London.
  • Ang, CL, Davies, MA& Finlay, PN 2001,‘An Empirical Model of IT usage in the Malaysian Public Sector’,Journal of Strategic Information Systems, vol. 10, pp. 159-174.
  • Armstrong, M. & Baron, A., 2005. Managing performance: performance management in action. CIPD publishing.
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