The Effects of Computerized Accounting System on Auditing Process: a Case Study from Northern Iraq

Abstract

The study is aimed at determining the effects of computerized accounting systems (CAS) on the effectiveness and efficiency of internal audit. The study was conducted at Zanko bank and initially based on a sample size of 35 employees. However, only 30 managed to respond to the questionnaires as the others were not available.  The researcher used stratified sampling and later random sampling to ensure equal chances of selection of all the respondents. The study used correlation coefficient tests and descriptive statistics to analyse the findings while paired sample t-tests were used to determine the validity of the formulated hypothesis. The results showed that CAS contributed to the effectiveness and efficiency of the audit to a moderate extent through making the processing of transactions faster and minimizing errors. The findings also revealed that audit effectiveness has a significant impact on the auditing process and that audit efficiency, significant and other CAS problems do not have significant impacts on the auditing process. Contributions from CAS were discovered to be negatively correlated with audit effectiveness and significant problems but positively correlated with audit efficiency and other CAS problems

Keywords: Computerized accounting system, audit effectiveness, and efficiency