Enterprise Resource Planning on Quality of Financial Reports of Public Universities in Uasin Gishu County, Kenya. The Effect of Fixed Assets Reporting
Journal Title: International Journal of Finance Accounting and Economics - Year 2018, Vol 1, Issue 3
Abstract
An enterprise resource planning is software that integrates several sections in an institution as a separated functional area and each functional area includes a set of business processes with flowing data into a central database. Universities in Kenya are embracing the use of enterprise resource planning in their financial operations. The study seeks to determine the effect of fixed assets reporting on quality of financial reports of public universities in Uasin Gishu County, Kenya. The research was guided by the fixed assets theory. Descriptive survey research design was used. The study used simple random sampling technique in choosing the sample size from the accessible population and used the Yamane formula to arrive at the sample size which was 92 respondents from the public universities in Uasin Gishu County, Kenya. A pilot study was conducted in order to test the validity and reliability of the research questionnaire. Content validity was used as a validity test while reliability was tested using Cronbach’s alpha coefficient. Questionnaires were used to collect primary data. Data was analyzed using both descriptive and inferential statistics. Data gathered from the questionnaires administered were analyzed using SPSS. The outputs were presented inform of statistical diagrams, tables and graphs. The study used multiple linear regression and correlation analysis to show the relationship between the variables. Findings revealed that fixed assets reporting (β=0.250; p<0.05), positively and significantly influence quality of financial reports. The study therefore concludes that quality of financial reports can be improved by timely reporting of expenditure and complete recognition of fixed assets. This study recommends that the institution have more internal audit reviews to appraise and check on the strength of the instituted controls within the system. The study will be important to higher learning institutions since it will be able to come up with more effective measures of improving the quality of financial reports through ERP system
Authors and Affiliations
Lydia Jemutai Tuitoek, Kimani E. Maina
Keywords
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