Effect of Computer Applications on the Preparation o f Quality Financial Reports for Public Universities In Western Kenya

Abstract

Computer accounting systems' literature show computer applications are important in the preparation of quality financial reports. Previous studies mainly focus on automated accounting information system and computer security issues, failing to study the extent of computer applications in the preparation of quality financial reports; effect of Ms Navision software application on quality of financial reports and the effect of Ms Excel software application on quality of financial reports in public universities are unknown. Therefore, the purpose of this study was to analyze the effect of computer applications on the preparation of quality financial reports for public universities in Western Kenya. Specific objectives were to: determine the extent of adoption of computer applications in the preparation of quality financial reports, analyze the effect of Ms Navision software application on the preparation of quality financial reports and establish the effect of Ms Excel software application on the preparation of quality financial reports in the public Universities in Western Kenya. The study was anchored on resource mobilization theory employing correlational research design. Study population constituted 35 employees in Finance department of selected five public universities in Western Kenya. Reliability was done using pilot study which yielded alpha coefficient above 0.7 while validity was done using expert reviewers. Primary and secondary data were collected using questionnaires and desk review respectively. Data was analyzed using descriptive and inferential statistics and presented using tables. The findings were that Ms Excel and Ms Navision software are used respectively to a very great extent (Mean = 4.000, Std.dev = .675) and (Mean = 3.000, Std.dev = .844) meaning that computer applications are used widely. Ms Navision application is an insignificant positive predictor of financial reports (~ = .336, P =.017) implying that a unit change in application of Ms Navision software leads to an increase in quality of financial reports of 0.336 %, while Ms Excel application is a significant positive predictor of financial reports (~ = .800, p =.000) meaning that a unit change in application of Ms Excel software in preparation of financial reports leads to an increase in quality of financial reports of 0.800 %.The study concludes that Ms Excel and Ms Navision software are used to a great extent; use of Ms Navision and Ms Excel software influences quality of financial reports positively. The study recommends that; management of public universities should intensify application of computer applications in preparation of financial reports; management of public universities should intensify application of Ms Navision software and increase application of Ms Excel software. The findings may help public universities to adopt computer applications that would enhance their financial reports and prove to be useful to both academics and industry players in the education sector.