ASSESSING THE EFFICIENCY AND EFFECTIVENESS OF

COMPUTERIZED ACCOUNTING SYSTEM (CAS) ON FINANCIAL

REPORTS OF NONLIFE INSURANCE PROVIDERS

An Undergraduate Thesis

Submitted to

The Faculty of College of Business Education

Saint Francis Xavier College

San Francisco, Agusan del Sur

In Partial Fulfillment

of the Requirements for the Degree

Bachelor of Bachelor of Science in

Accounting Information System

Catubig, Joshua Kenneth R.

Ecoy, Kimberly Jane I.

Gallego, Marygil H.

January 5, 2024

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F:
+63 85 8392284
 SAINT FRANCIS XAVIER COLLEGE
San Francisco, Agusan Del Sur

COLLEGE OF BUSINESS EDUCATION

______________________________________________________________
APPROVAL SHEET

This Undergraduate Thesis entitled " ASSESSING THE EFFICIENCY

AND EFFECTIVENESS OF COMPUTERIZED ACCOUNTING SYSTEM

(CAS) ON FINANCIAL REPORTS OF NONLIFE INSURANCE PROVIDERS"

of Saint Francis Xavier College prepared and submitted by Joshua Kenneth

R. Catubig, Kimberly Jane I. Ecoy and Marygil H. Gallego in partial fulfillment

of the requirements for the degree of Bachelor of Secondary Education, Major

in English has been examined and is recommended for approval and

acceptance.

______________________
Adviser

APPROVED by the Thesis Committee on oral examination with a

grade of PASSED.

____________________ ________________________
Member Member

__________________________
Chairperson

______________________________________________________________
ACCEPTED and APPROVED in the partial fulfillment of the requirements for
the degree of, Bachelor of Secondary Education Major in English.

_________________________
Dean (COLLEGE)

Date:

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85 8392284
Acknowledgement

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85 8392284
 TABLE OF CONTENTS
TITLE PAGE i

APPROVAL SHEET ii

ACKNOWLEDGEMENT iii

TABLE OF CONTENTS iv

LIST OF TABLES v

LIST OF FIGURES vi

ABSTRACT vii

CHAPTER

1 BACKGROUND OF THE STUDY

Introduction 1

Statement of the Problem 3

Null Hypothesis 4

Theoretical Framework 4

Expectation Theory 4

Conceptual Framework 6

Scope and Delimitation of the Study 7

Significance of the Study 7

Definition of Terms 8

Review of the Related Literature 10

2 METHODOLOGY

Research Design 17

Research Locale 18

Respondents of the Study 18

Research Instruments 18

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85 8392284
 Sampling Procedure 19

Data Gathering Procedure 20

Statistical Tools 21

Ethical Considerations 21
REFERENCES 22
APPENDICES
A. Permission to Conduct the Study 24
B. Letter to the Respondents 25
C. Survey Instruments 26
D. Gantt Chart 29
CURRICULUM VITAE 41

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85 8392284
 LIST OF TABLES

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85 8392284
 LIST OF FIGURES
Figure 1. Research Paradigm 8

Figure 2. Spot Map of the Study 22

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85 8392284
ABSTRACT

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85 8392284
 CHAPTER 1:

BACKGROUND OF THE STUDY

Introduction

Accounting is an important part of business, whether it is large or small,

profit or non-profit organization. Many companies are satisfying to do their

bookkeeping by hand. But with modern technology and improvement in

accounting systems, which used to be done manually, is now done with the

help of a computerized accounting system that helps in preparing the financial

reporting of the organization. However, despite the widespread acceptance of

computerized accounting systems, non-life insurance has struggling to avoid

the many shortcomings of financial reporting. Computerized accounting

system compared to other San Francisco Agusan del Sur developed and

developing countries.

According to Abiahu (2014), computerized accounting system involves

the use of computers and computer capabilities in the performance of

accounting functions in an organization. Computerized accounting system

used to record the financial transaction of a business or organization (Shiraj

2014). Additionally, computerized saves time on transaction hence leading to

quality of financial reporting for instance timely, accurate Ang reliable

information can be generated (Alfred2014). CAS provides a powerful tool for

improvement of government services with regard to service delivery (Kombo

2013). According to Appiah et al (2014), CAS results in effectiveness and

efficiency in financial information recording, processing and analysis. In fact,

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
computerized accounting can be a descriptive technology to some extent

because of its revolutionary nature to the accounting profession (Amanamah

et al 2016).

The majority of non-life insurance providers are private businesses, so

they are not subject to the same strict legal and regulatory reporting

requirements as large, publicly traded companies. Nevertheless, they still

require high quality financial reports to help them make wise business

decisions and to give them an advantage when applying for financial aid,

loans and credits. According to prior study, including computer-based system

into accounting system would facilitate the creation of meaningful accounting

information, which suggests that computerized accounting system might have

an impact in the accuracy of commercial organization financial reporting.

Numerous research has been done on the connection between the quality of

financial information globally and the accounting information system.

However, the researcher hasn’t found any studies that investigate how San

Francisco Agusan del Sur Non-life Insurances carries ‘financial reports are

affected by computerized accounting system. Conducting empirical research

on computerized accounting system on financial reports in San Francisco

Agusan del Sur focuses on the issues of adoption, implementation, and

internal control; however, there is a dearth of research on assessing the

efficiency and effectiveness of computerized accounting system on financial

reports of nonlife insurance providers, and this has created a gap in the

literature of this crucial and quickly developing area of accounting and

finance. The study aims to fill this gap by analyzing the relationship between

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
computerized accounting system and financial reports of non-life insurance

providers in San Francisco Agusan del Sur.

The study aims to fill the gaps in the current understanding of the

assessing the efficiency and effectiveness of computerized accounting system

on the financial reports of non-life insurance providers in San Francisco,

Agusan del Sur. Through empirical research, the study intends to provide

improving the assessment or evaluation of the quality in financial reports and

effectiveness of computerized accounting systems. By addressing the unique

contextual factors, focusing on non-life insurance providers, and considering

the human dimension in computerized accounting system implementation,

this research aims to contribute to improved financial reports within the non-

life insurance providers.

Statement of the Problem

The study aims to investigate the Impact of Computerized Accounting

System on the Financial Reports of Non-life Insurance Providers in San

Francisco, Agusan del Sur.

Specifically, aims to answer the following questions:

1. What is the current level of the computerized accounting system

employed by non-life insurance providers in terms of:

1.1 Internal Controls;

1.2 Automated Data Processing;

1.3 Relational Database;

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
 1.4 Automated Reporting; and

1.5 Enhancing Technologies?

2. What is the quality level of financial reports generated by non-life

insurance providers demonstrate, in terms of:

2.1 Relevance;

2.2 Faithful Representation;

2.3 Understandability; and

2.4 Comparability?

3. Is there a significant relationship between the efficiency and

effectiveness of computerized accounting systems and the quality of

financial reports generated by non-life insurance providers?

4. What potential interventions or measures can be implemented to

enhance the efficiency and effectiveness of computerized accounting

systems in producing high-quality financial reports for non-life

insurance providers?

Null Hypothesis

Ho1: There’s no significant relationship between the computerized

accounting system and Financial Reports of Nonlife Insurance Providers.

Theoretical framework

This chapter highlights major theories and seeks to evaluate previous

studies in relation to Financial Reports for Non-life Insurance Providers. This

study delves into the fundamental theories that form the bedrock of

understanding financial reports within the domain of non-life insurance

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
providers. Some important theories that relate to this subject includes: System

theory which is the main theory, and the Agency theory and Contingency

theory are the sub-theories of this study. This combination of theories offers a

comprehensive lens through which to examine the intricate dynamics that

shape financial reporting practices in the context of non-life insurance.

System Theory

According to Kaufmann (1966) developed systems to explain historical

development as a dynamic process and was more fully developed by biologist

Bertalanffy (1968). Bertalanffy argued that everything is interconnected and

therefore, we should study the interconnectedness as a means of

understanding the world. The systems theory method of analysis involves,

first the deconstruction of what is to be explained that is the phenomenon

under consideration, secondly, the formulation of explanation that account for

the behavior of properties of the component separately and finally the

synthesis of these explanations into an aggregate understanding of the whole.

General 11 systems theory like other innovative frameworks of thought

passes through phases of ridicule and neglect. It has benefited, however,

from the parallel emergence and rise to eminence of cybernetics and

information theory. Systems theory is relevant to this study because the

methods proposed by the theory is to model complex entities created by

multiple interaction of components by abstracting from certain details of

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
structure and component and concentrating on the dynamics that define the

characteristics functions, properties and relationships that are internal or

external to the system, Computerized Accounting System is a computer

based system, which combines accounting principles concepts as well as the

concept of information system to record, process, analyze and produce

financial information to its users to make economic decisions (Gelinas et

al,2005). (SUGUT 2014)

The Agency Theory

According to the Agency theory developed by Jensen and Meckling,

agency costs arise from conflicts of interest between shareholders and

managers of the company. Agency costs are defined as the sum of monitoring

costs incurred by the principal, bonding costs incurred by the agent, and

residual loss. Lower agency costs are associated with better performances

and thus higher firm values, all other things being equal. Agency theory states

that management and owners have different interests (Jensen and Meckling,

1976). Companies that separate the functions of management and ownership

will be susceptible to agency conflicts (Lambert, 2001). They show that

regardless of who makes the monitoring expenditures, the cost is borne by

stake holders. Debt holders, anticipating monitoring costs, charge higher

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
interest. The higher the probable monitoring costs, the higher the interest rate

and the lower the value of the firm to its shareholders all other things being

the same (ONSONGO 2015).

Contingency Theory

The contingent factors influencing the development of accounting

information systems for nonprofit organization projects in Tanzania have been

explained using contingency theory. Contingency theory is used in information

system research to understand the interconnections between variables that

affect the implementation of a successful information system (Reinking,

2012). Accounting information system and management information system

research have both contributed to the development of the theory. In the

development and implementation of systems, contingency variables are used.

Contingency theory in the deployment of accounting information systems has

been discovered to be directly associated with organizational and individual

characteristics (Ginzberg, 1980). To achieve successful system

implementation, these variables communicate with one another. Various

researchers have identified organizational characteristics such as

organizational structure and top management support (Chenhall and Morris,

1986; Mahmood and Swanberg, 2001; Daoud and Triki 2013).

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
Conceptual Framework

INDEPENDENT VARIABLE DEPENDENT VARIABLE

Computerized Accounting Financial Reporting

System

Relevance
Internal Control
Faithful Representation
Automated Data Processing
Understandability
Relational Database

Automated Reporting Comparability

Enhancing Technologies
Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
 “Figure 1. Research Paradigm”

The conceptual model presented in Figure 1. Aims to analyze the

efficiency and effectiveness of Computerized Accounting System (CAS) on
the financial reports of Non-life Insurances Providers in San Francisco,
Agusan del Sur. The model incorporates various factors associated with CAS,
including relevance, faithful representation, understandability and
comparability. Additionally, it considers the user’s demographic
characteristics, which encompass internal controls, automated data
processing, relational database, automated reporting, enhancing
technologies.

The proposed conceptual model seeks to determine the assessing

efficiency and effectiveness of CAS on the financial report of non-life
insurance providers by examining the interplay between these factors.

Scope and Delimitation

The primary objective of this study is to investigate the efficiency and

effectiveness of computerized accounting system (CAS) on the financial

reports of non-life insurances companies. The study will specifically examine

the relationship between CAS and financial reports indicators within the

selected non-life insurances companies. It will explore how various aspects of

CAS, such as internal controls, automated data-processing, relational

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
database, automated reporting and enhancing technologies influences

financial neports outcomes.

While the study aims to provide valuable insight in the efficiency and

effectiveness of CAS on financial reports, it is important to acknowledge the

limitation and delimitation of this research. Firstly, the study will be limited to

non-life insurance companies located in the San Francisco Agusan del Sur

Region. The findings may not be generalizable to other geographical locations

or industries. Additionally, the study will focus on a specific set of financial

reports indicators within non-life insurance companies. These indicators may

include relevance, faithful representation, understandability, and

comparability. Other aspects of financial reports that are not directly related to

CAS implementation will not be extensively explored within the scope of this

study. The study will be conducted on the year 2023.

Furthermore, the research will be conducted within a specific timeframe

and with limited resources. This may impose constrains on the sample size,

data collection methods and analysis techniques employed. The findings may

be subject to these limitations, and it is important to consider these factors

when interpreting the results.

In summary, this study will provide insights into efficiency and

effectiveness of CAS on the financial reports of non-life insurance provider in

the San Francisco del Sur region. However, the scope of the study is whole

population in geographical area and particular set of financial reports

indicators. The findings may be valuable for understanding the local context

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
but should be interpreted with consideration for the study’s delimitations and

potential limitations.

Significance of the study

The study’s importance comes from the fact that external auditors stay

current with the various technological advancements occurring in the field of

information technology, which includes computerized accounting information

systems.

This study is conducted to benefit the following;

Customer/Client

Customer and client have the beneficiaries of this study because it

deals on how the customer satisfy of the insurance provider.

Employee

Employees work on this study for the businesses so that they may

keep track of their daily finances and client interactions as well as perform

accurate revenue and spending forecasting.

Management/ Company

The management complies with the essential needs of their clients and

staff by complying with the guidelines concerning their businesses. They also

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
give employees the skills necessary to succeed in leadership roles, effectively

lead teams of people in organizations, and take care of their concerns

regarding the manipulation of the computerized accounting system.

Researcher

The researcher would be able to comprehend the efficacy and

efficiency of the nonlife insurance provider’s financial report. The study will

ascertain whether competitive accounting systems might offer to management

that could influence financial reports.

Future Researcher

The researcher who plans to do any connected study will find this

researcher to be a helpful source of information.

Definition of Terms:

Automated Data Processing

Automated Data Processing refers to the application of software that

performs data-related tasks automatically without much human involvement. It

means automated data processing relieves you from several manual,

repetitive tasks and maintains work efficiency by taking care of them

(Manjusha Pal, 2023).

Automated Reporting

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
 Report automation is a growing subject in many companies and

touches on various trending topics like big data analytics, robotic process

automation and business intelligence (Jasmin Jutila, 2022).

Comparability

Comparability is the qualitative characteristic of financial reporting

information that enables users to identify and understand similarities in, and

differences among, items (Barth 2023).

Computerized Accounting Systems (CAS)

Computerized Accounting Systems (CAS) is the use of automated

systems in recording, processing and evaluating financial information with the

use of various accounting software. This result in vast improvements where

speed, accuracy, reliability and decision making are concerned (Nicosia

2018).

Enhancing Technologies

Enhancing technologies are a set of tools, systems, and methods used

to prevent the processing of confidential data without loss of functionality

(Schaick, 2023).

Faith Representation

Faith representation is the second fundamental qualitative

characteristics of useful financial information and is indicative of financial

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
information that is complete, neutral, and free from material error (Al-Dmour et

al., 2017).

Financial Reports

Financial Reports is the process of producing statements that disclose

an organization’s financial status to management, investors and the

government (Soten 2019).

Internal Control

Internal control is an established process by the company’s top

management to ensure achieving the company’s primary goals and

objectives, such as an effective and efficient operations, safeguarding the

assets, ensuring the accuracy and validity of accounting information, following

the organizations policies and procedures and preparing reliable reports in

timely bases (COSO, 2013).

Relational Database

Relational databases store data in the form of tables. The tables

consist of columns and rows. Each column is a property that describes the

table/relation, while each row presents a unique record (Ahmed & Hazan,

2023).

Relevance

Relevance is described as the pertinence of accounting information to

decisions. Refers to the appropriateness and importance of the economic

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
phenomenon that is selected for the decision-making by the users of the

accounting information (Azar el al 2019).

Understandability

Understandability is the degree to which users easily understand the

information presented in the financial statements (Itang 2021)

Review of Related Literature

This section would exhibit the different literature of international and

local authors. This would provide sufficient and significant information related

to the topics that including on this research paper. This study focusing on the

Assessing the Computerized Accounting System of the financial Reports of

Nonlife Insurance Provider.

Foreign

Computerized Accounting System

According to Larson & Pyle (2018) an accounting system consists of

business papers, records, reports and procedures that are used by an

organization in recording transactions and reporting their effects. Collins and

Collins (2018), underlines that an accounting system is a way of keeping a

written record of transactions. Receipts are given for all money that is

received by an organization and receipts are asked for every time money is

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
spent. Accountability for non-profit organizations is both a legal and ethical

obligation for organizations that use resources received to further their

charitable mission, Accountability may encompass a full report of activities as

well as justification for the way resources are managed (Gordon et al., 2013).

Internal control

Internal control, derived from Anglo-Saxon term of “internal audit”,

corresponds to the processes of evaluating systematic inefficiency of internal

operations and planning related activities with improvements when errors,

deficiencies, weaknesses or deceptions are detected in the processes. In

other words, internal control is the whole of applications and approaches,

which are organized to detect independently whether enterprises operate

satisfactorily or not, through technical, scientific and analytical evaluations

(Yemer & Chekol, 2017). Additionally, internal control is the total of policies

and procedures being accepted by business managements and guiding them

in terms of conducting operating activities regularly, effectively and efficiently

at the optimum level (Akmese & Ilgas (2021). However, internal control is now

linked to risk management. Internal control should cover the identification and

mitigation of risks; the new conceptualization of internal controls is that they

exist to assist the organization in managing its risks and promote effective

governance processes (Haddad 2016). According to Ayagre et al. (2014) that

the internal control components and business processes must collaborate

continuously for a sound, effective internal control framework. The consistent

and collaborative interaction of an internal control system with business

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
procedures is essential for the effectiveness of an internal control framework.

Control goals and measures that are derived from the monitoring and

assessment of risks must be integrated into operational business units and

business practices through effective data. Furthermore, it is necessary to

communicate across the organization the control component that guarantees

that a smooth stream of data reaches the work force that is in charge of

internal controls. Ahmed & Nganga (2019), internal controls are laws that

safeguard the assets of an organization, provide dependable financial

reporting, enhance compliance with regulations and laws and achieve

efficiency in operations.

Automated Data-processing

In computerized accounting systems, these steps are carried out

automatically, seamlessly, and almost simultaneously by the automated data-

processing subsystem with the click of a button (Sacer & Oluic, 2013). The

subsystem that is responsible for this function is referred to in this study as

the automated data processing component. This component has been

indicated for the accounting systems’ overall seamless processing capacity

and their ability to validate data, post transactions, balance accounts, and

reconcile them without human intervention (Hunt 2013). As indicated by

Aggraeni (2016), the automated capability of the computerized accounting

system makes it possible for tasks such as capturing of financial data, posting

of transactions, and balancing of accounts to be performed without human

intervention and with higher speed and accuracy. Hence, the automated data-

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
processing component is an essential structural characteristic of

computerized accounting systems. The automated data-processing

component or subsystem is responsible for the systems’ ability to perform

accounting tasks and processes automatically, without human intervention

(Itang, 2020).

Relational Database

Computerized accounting systems are characterized by relational

database management subsystems, which helps in the storage, maintenance,

and utilization of large collection of data as well as the preservation of data

independence, integrity, scalability, and concurrent access (Agung, 2015).

However according to the study of Liu (2015) relational databases are based

on the relational data model. Relational databases use a set algebra and

other mathematical concepts and methods to process data. And linkages in

the real world between entities are represented by the relational model. The

relational database component is the subsystem responsible for the storage,

maintenance, and utilization of data and information in the system

(Ramakrishnan & Gehrke, 2013).

Automated Reporting

A computerized accounting system is characterized by the ability to

automatically generate outputs in the form of reports that are based on

defined parameters and reporting options (Intuit Inc, 2018). This automated

reporting subsystem works in consonance with the relational database

management subsystem for the retrieval and utilization of data and

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
information relevant for every report (Sage Software, 2015). The automated

reporting component is, therefore, a very significant structural characteristic of

the computerized accounting system as its inefficiency would jeopardize the

strategic objective of the system, which is to provide decision-useful

information to the various stakeholders.

Enhancing Technologies

Findings from study by Paganini (2019) the first four structural

characteristics of computerized accounting systems discussed earlier (internal

controls, automated data processing, relational database, and automated

reporting components) are synthesized within the framework of the

accounting software architecture, and logically organized to enhance the

performance and reliability of the software. However, these components and

the entire system depend on some other technological tools for effective

performance. These secondary technological tools on which the accounting

system depends to function effectively are referred to in this study as

enhancing technologies. These enhancing technologies include various

computer hardware, firmware, applications, and accessories such as

networking infrastructure, web and cloud technologies, printing and imaging

equipment, among others (Gupta D., & Jain, 2017). Privacy-enhancing

technologies are a relatively new phenomenon in the world of Privacy

(Goldberg et al, 2013). As the world today collects more data than ever

before, it is evidently more important than ever to protect the privacy of the

data subject from potential data theft, unwanted profiling, and leaks (Madden

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
& Rainie, 2015). As people are getting more concerned about their privacy,

the goal to protect privacy has become a vital business decision for

companies, not only a moral obligation (Wu et al., 2013).

Financial Reporting

Relevance

Relevant financial information must have either predictive and

confirmatory value or both (Greuning et al., 2013). The value relevance is

being defined as the ability of information that is presented by financial

statements to capture and summarize firm value. Value relevance can be

measured by the statistical relations between information that financial

statements present and stock market values or returns (Suadiye, 2013).

According to Kanodia et al. (2015) the value-relevance of financial reports of

other firms, though well documented in the empirical literature on information

transfers, has largely been ignored in the modeling of accounting economies.

Relevance is closely associated with the term’s usefulness and materiality.

Relevance illustrates the capability of making decisions by users. When

information in financial reports influences users in their economic decisions, it

is sad that this information has the quality of relevance. Also, when this

information assists users to evaluate, correct, and confirm current and past

events, it is useful (Lee, 2018).

Faithful Representation

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
 According to study by Ernst & Young (2018) noted that faithful

representation replaces the term “reliability” to ensure clarity and common

understanding in relation to its meaning. Faithful representation of financial

information would be guaranteed when financial statements are based on

estimates and assumptions that match the underlying economic constructs

and standards, as well as highlight in a neutral manner both positive and

negative economic events (Maines & Wahlen, 2016). Faithful representation

is the concept of reflecting and representing the real economic position of the

financial information that has been reported. This concept has the value of

explaining how well the obligations and economic resources, including

transactions and events, are fully represented in the financial reporting.

Moreover, this quality has neutrality as a sub notion which is about objectivity

and balance. According to Willekens (2018), researchers concluded that the

auditor’s report adds value to financial reporting information by providing

reasonable assurance about the degree to which the annual report represents

economic phenomena faithfully. Additionally, how business organizations are

controlled and directed affects the faithful presentation quality; this in fact, is

represented as a corporate governance factor when there is extensively

disclosed information on corporate governance issues in the annual report

(Braam & Boelens, 2019). Besides, the annual report clarifies assumptions

and estimates and explains the usage of the accounting principles in the

company clearly.

Understandability

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
 Understandability of financial information would be assured through

clear and concise classification, characterization, and presentation (IASB,

2018). However, if the understandability is not observed by the managers that

compile the financial statements, the statutory consequence is therefore, the

nullity of the resolution approving this document, which causes the obligation

to rewrite the financial statements in a correct and clear manner (Benston et

al. 2016). Understandability is one of the essential qualities of information in

financial reports. Achieving the quality of understandability is through effective

communication. Thus, the better the understanding of the information from

users, the higher the quality that will be achieved (Cheung, Evans, & Wright,

2013). It is one of the enhancing qualitative characteristics that will increase

when information is presented and classified clearly and sufficiently. When

annual reports are well organized, users can comprehend what their needs

are (Beest, Braam, & Boelens, 2009). Usage of graphs and tables helps to

present information clearly, and the usage of language and technical jargon

can be followed easily.

Comparability

Comparability of financial information would be assured when similar

situations are presented in the same manner, while differing situations should

also be presented differently (Mbobo & Ekpo, 2016). Therefore, comparability

of financial information requires consistency in accounting policies and

procedures, accounting estimates and adjustments, and information on any

changes therein (EY, 2013). Comparability is the concept of allowing users to

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
compare financial statements to determine the financial position, cash flow,

and performance of an entity. This comparison allows users to compare

across time and among other companies in the same period. As Cheung,

Evans & Wright (2013) remarked: Comparability demands that identical

events in the two situations will be reflected by identical accounting facts and

figures different events will be reflected by different accounting facts and

figures in a way which quantitatively reflects those differences in a

comparable and easily interpretable manner (Cheung et al.2014). To indicate

this point, the notes in financial reports should disclose and explain all the

changes in accounting policies and the implications of these changes, not to

mention the importance of consistency in applying accounting policies and

principles. Also, the current accounting period results can be compared with

the ones from previous periods. Lastly, presenting financial index numbers

and ratios contributes to the comparison with other organizations (Beest et

al.2019).

Local

Internal Control

According to the study of Beloy conducted in the Philippines that

internal control has a broad definition. However, the Committee of Sponsoring

Organizations of the Treadway Commission [COSO] (2013) quoted internal

control as a process, effected by an entity’s board of directors, management

and other personnel, designed to provide reasonable assurance regarding the

achievement of objectives on the following categories: reliability of financial

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
reporting; compliance with applicable laws and; effectiveness and efficiency of

operations. Additionally internal controls are put in place to keep the company

on course towards profitability goals and achievement of its mission, and to

minimize surprises along the way. Internal controls promote efficiency, reduce

risk of asset loss, and help ensure the reliability of financial statements and

compliance with laws and regulations (Arcilla 2020). Furthermore,

Almakhadmeh (2014) defines internal control as a tool used by top

management to provide the interested parties with accurate, timely, and

necessary information adopted in the decision-making process. A study of

impact of accounting information system on effectiveness of internal control

and firm performance revealed that effective and efficient controls are affected

through accounting software, which leads to better and reliable accounting

information for better decision making for both internal and external user. Just

as several studies have found that the security, ease of use, and efficiency

are the key features of information system quality and that information quality

dimension includes accuracy, timeliness and completeness (Jalaliyoon et al.

(2013)

Automated Data Processing

The computer system simply automated processing a clerical

procedure such as check. In contrast, today's integrated human resources

system (which includes payroll processing) may involve all major corporate

divisions, the human resources department, dozens of full-time programmers,

a flock of internal consultants, multiple machines and hundreds of end users

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
in the organization (Baidya, 2019). According to Schultheis and Sumner

(2015) many large or small organizations developed automated data

processing to install computer systems and develop computerized versions of

financial accounting systems to handle the large number of transactions they

needed to process. Because of the advent of microprocessors and the large

drop in the cost of computer systems, computerization of financial accounting

systems was a major event for organizations.

Relational Database

Automated Reporting

Enhancing Technologies

Financial Reporting

According to Valencia & Genil (2013), financial reporting is all about

presenting useful information to users so that proper decisions can be made.

His implication about financial reporting is that financial information should aid

in the evaluation of amounts, timing and uncertainties of cash flows. Also

financial reporting should furnish information about the entity’s economic

resources, claims against those resources, owners’ equity and changes in the

resources and claims.

Relevance

Value relevance, as a concept, is based on relevance and reliability

(Uwuigbe et al., 2016). It is attained through the ability of accounting figures to

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
affect or determine stock market values (Omokhudu & Ibadin, 2015). If there

is no statistical association between accounting information disclosed in the

financial statements and the firm’s value, it cannot be considered value

relevant; thus, one of the primary objectives of financial reporting is not

achieved (Beisland, 2019). According to Felix and Rebecca (2015), there are

different ways of interpreting the value relevance theory and one of these is

the fundamental analysis view. This view focuses on the usefulness of

accounting information in equity valuation. Accounting values are deemed to

be relevant for measuring the companies’ future value creation and growth.

The investors’ expectations and beliefs about the companies’ future are

reflected on the market value of a firm’s stock on the market.

Faithful Representation

Understandability

According to Pallai (2017) understandability as a quality of financial

reporting that enables users to perceive the significance of financial

information. He argues that users are assumed to have reasonable

knowledge of business and willingness to study and understand the

information. International Accounting Standards Board adds that information

should not be excluded on grounds that it may be difficult for certain users to

understand.

Comparability

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
 CHAPTER 2:

METHODOLOGY

Research Methodology

This chapter deals with the overall arrangement of the investigation of

how researchers decide the appropriate responses to the research question.

It includes research design, research locale, and respondent of the study,

research instrument, sampling procedure, data-gathering procedure,

statistical tools, and ethical considerations. In order to verify that the final

results are accurate, it is also a tool for data collecting. The method that the

researcher uses to analyze their data is highlighted and explained.

Research Design

This study is a quantitative form of research that uses the descriptive-

correlation method to investigate the relationship between the financial reports

of nonlife insurance providers and the computerized accounting system.

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
Quantitative research is used to gather and examine numerical data from a

population, making it suitable for examining the relationship between two

variables. It is descriptive because it has been utilized to explain the efficiency

and effectiveness of a computerized accounting system on financial reports.

Additionally, it is a correlation since it examines the relationship between two

variables, a computerized accounting system and financial reports.

Research Locale

“Figure 2: Spot Map of the Study”

San Francisco, Agusan del Sur, is the chosen location for this study.

The area is known for its diverse population of insurance companies and is a

hub for the insurance industry in the province.

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
 Furthermore, San Francisco, Agusan del Sur, provides a suitable

environment for data collection as it has a highly concentrated population of

insurance companies within a relatively small area. The area's accessibility,

infrastructure, and availability of resources, such as the internet, make it an

ideal location for conducting research.

Overall, the choice of San Francisco, Agusan del Sur, as the research

location provides a suitable and relevant environment for conducting this

study, allowing for a comprehensive analysis of the impact of AIS on the

business performance of insurance companies in the area.

Respondent of the Study

The respondent of the study were selected from Nonlife Insurances

Provider located in San Francisco Agusan del Sur. Based on the data given

by the Business Permit and Licensing Office (BPLO) , there is a total of 11

registered and operational non-life insurances provider in the municipality and

out of 11 non-life insurance provider there is only 11 managers from different

non-life insurance provider who manage computerized accounting system and

will invited to take part in the study, it is important to note that participation in

the study will be voluntary and informed consent will be obtained from all

participants.

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
Research Instrument

The study will use an adapted-modified survey questionnaire from

existing related research study. The questionnaire of Akamanwan Effiong

Itang(2021) and SAIDU, Sani Altaji & DanJuma (2015) will be adapted for this

study . The questionnaire consists of two parts namely: Computerized

Accounting System and Financial Report

Scale Description Interpretation

4 Strongly Agree This is being interpreted that

the respondents strongly agree

with the statement at high level

3 Agree This is being interpreted that

the respondents agree with the

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
 statement at high level

2 Disagree This is being interpreted that

the respondents disagree with

the statement at high level

1 Strongly Disagree This is being interpreted that

the respondents strongly

disagree with the statement at

high level

Scale Range Description

4 3.26 – 4.00 Strongly Agree

3 2.51 – 3.25 Agree

2 1.76 – 2.50 Disagree

1 1.0 – 1.75 Strongly Disagree

To make a definite interpretation the weighted average, the proposed

hypothetical mean range will be used.

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
Sampling Procedure

The researcher will not employ any sample procedure because we will

include the whole population and we make sure that 11 population will be

accommodate and entertain.

The researchers will collect the data from the non-life insurance

providers using a survey questionnaire that will comprise five dimensions:

internal control, automated data processing, relational database, automated

reporting, and enhancing technologies.

Data Gathering Procedure

First, the researchers will submit their adopted questionnaires that

the research adviser will approve. After that, the researchers make approval

letter/permission letter to the administrators of the Insurance Companies in

San Francisco Agusan del Sur. After receiving the permission, the

researchers will conduct survey questionnaire for their perception and insights

into the effectiveness of using the AIS.

The researchers moved forward after retrieving the data together with

the collection of the data and its arrangement, tabulation, statistical treatment,

and analysis. In order to support the study's claimed sub-problems,

researchers presented the tables they had created. The alternative process of

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
the researchers to come up with the survey is face-to-face and need to follow

the Covid-19 protocol.

Statistical Tools

The collect data through responses obtain from the questionnaire

were analyze by weighted mean and standard deviation and pearson r of the

questionnaire will using the Statistical Package for Social Sciences (SPSS)

computer program and quantitatively analyze and interpret the major findings

and conclusions had to be discuss accordingly.

Weighted Mean and Standard Deviation.

This approach will be used to measure the efficiency and effectiveness

of computerized accounting system on the financial reports of non-life

insurance providers. The Standard Deviation will be used for Statement of the

Problem No.1 as well as the Statement of the Problem No.2 to identify the

levels of computerized accounting system among non-life providers in terms

of Internal Control, Automated Data Processing, Relational Database,

Automated Reporting, and Enhancing Technologies. And, the quality level of

financial reports generated by non-life providers in terms of Relevance,

Faithful Representation, Understandability, Comparability.

Pearson Correlation Coefficient (Pearson r).

This approach will be used for Statement of the Problem No.3 to

determine if there is a significant relationship between the efficiency and

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
effectiveness of computerized accounting systems and the quality of financial

reports generated by non-life insurance providers.

Ethical Considerations

The Researchers will apply the principles of ethical considerations

that Bryman and Bell (2007) developed. Regarding the involvement in this

study, the participants will not be subjected to harm in any way. Before the

study, full consent will be obtained from the participants, the respondents of

each insurance company within San Francisco Agusan del Sur. In addition,

the protection of the privacy of research participants will be ensured. The

voluntary participation of respondents in the research will be treated as very

important.

In handling the data, an adequate level of confidentiality will be

ensured. Any form of misleading information, as well as representation of

primary data findings in a biased way, will be avoided. Lastly, any

communication to this action research will be done with honesty and

transparency.

References:

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
 Ahmed, S., & Nganga, P. (2019). Internal Control Practices and

Financial Performance of County Governments in the Coastal Region of

Kenya. International Journal of Current Aspects, 3(V), 28-41.

https://doi.org/10.35942/ijcab.v3iV.59

Akmese, K. A., & Ilgaz, A. (2021). Efficiency of internal control systems

and the effect of organizational structure and culture on internal control

systems in accommodation industry. In C. Cobanoglu, & V. Della Corte (Eds.),

Advances in global services and retail management (pp. 1–12). USF M3

Publishing. https://www.doi.org/10.5038/9781955833035

Agung, M. (2015). Accounting information systems and improvement

on financial reporting. International Journal of Recent Advances in

Multidisciplinary Research, 2(11), 950–957.

Anggraeni, A. F. (2016). Correlation between information technology

and management information systems quality. International Journal of

Scientific & Technology Research, 5(6), 168–172.

Arcilla, Felix E. Jr. (2020). Evaluation of the Internal Control System of

Seventh- Day Adventist Hospitals in South Philippine Union Conference.

Baidya, Barnold A. (2019). THE FINANCIAL INFORMATION SYSTEM

OF THE NORTH PHILIPPINE UNION MISSION OF THE SEVENTH DAY

ADVENTISTS ORGANISATION: AN ASSESSMENT.

http://scholar.solusi.ac.zw/bitstream/handle/123456789/200/BAIDYA

%20BARNOLD.pdf?sequence=1&isAllowed=y

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
 Benston, G. J., M. Bromwich, R.E. Litan, and A. Wagenhofer, (2016).

Worldwide financial reporting: The development and future of accounting

standards. Oxford University Press.

Committee on Sponsoring Organizations of the Treadway Commission

[COSO]. (2013). Internal control – integrated framework: Executive summary.

Retrieved 19/05/2016 from:http://www.coso.org/documents/990025P

Ernst & Young. (2013). Conceptual framework: Objectives and

qualitative characteristics. Supplement to IFRS Outlook, 86, 1–3. Retrieved

from https://www.ey.com/IFRS

Gupta, D., & Jain, M. (2017). Impact of cloud accounting on business

performance. International Research Journal of Commerce, Arts and Science,

8(12), 321–329.

Haddad, H. (2016). Internal Controls in Jordanian Banks and

Compliance Risk. Research Journal of Finance and Accounting.

https://www.google.com/url?

sa=t&source=web&rct=j&opi=89978449&url=https://core.ac.uk/download/

pdf/

234631892.pdf&ved=2ahUKEwjo552c3I2AAxWg1zgGHVh_AfwQFnoECAwQ

AQ&usg=AOvVaw0EWP0PtmgUDnmwxPuZuP13

Hurt, R. L. (2013). Accounting information systems: Basic concepts

and current issues (3rd ed). McGraw-Hill/Irwin.

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
 Intuit Inc. (2018). QuickBooks small business user guide: Starting out

with QuickBooks online. Intuit Australia. Retrieved 16 October 2019 from

https://quickbooks.intuit.com/content/dam/intuit/quickbooks/i18n/en/Australia/

pdf/QuickBooks-Small-Business-User-Guide.pdf

Itang, A. E. (2020). Computerized accounting systems: Measuring

structural characteristics. Research Journal of Finance and Accounting,

11(16), 38–54. Doi.org/10.7176/RJFA/11-16-05

Larson, K. D. & Pyle, W.W. (2018), Fundamental Accounting

Principles, 11th Edition IRWIN Homewood Illinois 60430

Maines, L., & Wahlen, J. (2016). The nature of accounting information

reliability: Inferences from archival and experimental research. Accounting

Horizons, 20(4), 399–425.

Mbobo, M. E., & Ekpo, N. B. (2016). Operationalizing the qualitative

characteristics of financial reporting. International Journal of Finance and

Accounting, 5(4), 184–192.

Paganini, C. (2019). Primer: Understanding software and system

architecture. Online: The New Stack. Retrieved 13 April 2020 from

https://thenewstack.io/primer-understanding-software-and-system-

architecture/

Sacer, I. M., & Oluic, A. (2013). Information technology and accounting

information systems’ quality in Croatian middle and large companies. Journal

of Information and Organizational Sciences, 37(2), 117–126.

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
 Sage Software, Inc. (2015). Sage 50 accounting – US edition: User

guide. Sage Software. Retrieved 20 January 2020 from

https://cdn.na.sage.com/docs/en/customer/50us/open/Sage50UserGuide.pdf

Schultheis, Robert & Sumner, Mary (2015). Management Information

Systems: The Managers’ View, 3rd ed. p. 391.

http://scholar.solusi.ac.zw/bitstream/handle/123456789/200/BAIDYA

%20BARNOLD.pdf?sequence=1&isAllowed=y

Yemer, M., & Chekol, F. (2017). The effect of internal controls systems

on hotels revenue. A case of hotels in bahir dar and gondar cities. Arabian

Journal of Business and Management Review , 19-37.

Xuejiao Liu (2015). An Analysis of Relational Database and NoSQL

Database on an Ecommerce Platform.

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
 APPENDIX A
PERMISSION TO CONDUCT THE STUDY
June 2, 2023

Dear Ma’am,

Greetings of Peace!

In partial fulfillment of our requirements for our subject Accounting Research

Methods, we third year students of Bachelor of Science in Accounting
Information Systems, are conducting a research study entitled “Assessing the
Efficiency and Effectiveness of Computerized Accounting Systems on the
Financial of Non-life Insurance Providers”.
In connection with this, we would like to ask your good office to allow us to
conduct our research study in your vicinity. Rest assured that the data we will
gather will remain absolutely confidential and be used for academic purposes
only.

We believe that you are with us in our enthusiasm to finish the requirement as
compliance for our subject and to develop our well-being. We hope for your
response on this humble matter. Your approval to conduct this study will be
greatly appreciated.

Respectfully Yours,

JOSHUA KENNETH R. CATUBIG Noted by:

KIMBERLY JANE I. ECOY

CESAR V. APA Jr. CPA,

MM

Research Adviser

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
MARYGIL H. GALLEGO

Researchers

APPENDIX B
LETTER TO THE RESPONDENTS

June 2, 2023

Greetings!

We, Bachelor of Science in Accounting Information System students of Saint

Francis Xavier College of San Francisco are currently working on our
undergraduate thesis entitled “Assessing the Efficiency and Effectiveness of
Computerized Accounting Systems on the Financial of Non-life Insurance
Providers”.
In view of this, we humbly seek your permission to allow us to conduct our
survey. The survey would only last about 3-5 minutes and would be
administered through survey questionnaire during your available time. Your
response/s will be kept and treated with utmost confidentiality and would be
used only for academic purposes.

Respectfully Yours,

JOSHUA KENNETH R. CATUBIG Noted by:

KIMBERLY JANE I. ECOY CESAR V. APA Jr. CPA,

MM

Research Adviser

MARYGIL H. GALLEGO

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
 Researchers

APPENDIX C
SURVEY INSTRUMENTS
Survey Questionnaire

This section employs Likert scale type to evaluate/assess the structural

characteristics or functional components of computerized accounting system.

Based on the following scale:

4 = Strongly Agree 3 = Agree 2 = Disagree 1 = Strongly

Disagree

Statements 4 3 2 1
SA A D SD

Internal Control

Computerized accounting system predefined

users only can have access to the system with the
use of password

Computerized accounting system users are

assigned specific roles to ensure segregation of
duties.

Using computerized accounting system can check

and confirms the accuracy of data entered in the
system.

Computerized accounting system is protected

from intrusions, information theft, and data
manipulation.

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
Computerized accounting system can provide
audit trail on users and transactions.

Automated Data Processing

Computerized accounting system performs tasks

and process seamlessly

Computerized accounting system has data

validation functionalities

Computerized accounting system perform

transactions posting automatically

Computerized accounting system perform

accounts balancing functions automatically.

Using computerized accounting system has

accounts reconciliation functionality.

Relational Database

Using computerized accounting system can store

large collection of data.

Using computerized accounting system enhance

the maintenance and retrieval of large collections
of data.

Using computerized accounting system ensures

the independence and integrity of data

Computerized accounting system ensures the

security, backup, and recovery of data.

Computerized accounting system ensures

concurrent access to data and information in the
system.

Automated Reporting

Computerized accounting system generates

financial statements and reports seamlessly.

Computerized accounting system can generate

the trial balance and other general ledger reports
automatically.

Computerized accounting system can generate

various financial statements (ex. income

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
statement, balance sheet)

Computerized accounting system can generate

financial statements with comparative figures.

Financial statements and reports can be

generated from computerized accounting system
based in multiple formats and reporting options.

Enhancing Technologies

Computerized accounting system is (or could be

used) on a network.

Computerized accounting system is (or could be

migrated to) cloud based.

Computerized accounting system can interface

with point of sale (POS) devices.

Computerized accounting system support

documents upload and attachment.

Computerized accounting system supports

Email/SMS facilities.

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
 This section employs Likert scale type to evaluate/assessing financial

reports in your organization. Based on the following scale:

4 = Strongly Agree 3 = Agree 2 = Disagree 1 = Strongly

Disagree

Statements 4 3 2 1

SA A D SD

Relevance

The presence of the forward-looking statement helps forming

expectations and predictions concerning the future of the
company.
The presence of non-financial information in terms of business
opportunities and risk complement the financial information.
The company uses fair value of historical cost.
The reported results provide feedback to users of the annual
report as to how various market events and significant
transactions affected the company.
Faithful Representation

Valid arguments provide to support the decision for certain

assumptions and estimates in the annual report.
The company bases its choice for certain accounting principles
on valid arguments
The company, in the discussion of the annual results,
highlights the positive events as well as the negative events.
The company provides information on corporate governance.
Understandability

The annual report is presented in a well-organized manner.

The notes to the balance sheet and the income statement are
sufficiently clear.
The use of language and technical jargon and the annual
report are easy to follow.
Comparability

The company provides a comparison of the results of current

accounting period with previous accounting periods.

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
 The information in the annual report is comparable to
information provided by other organizations.
The company adjusts previous accounting period’s figure in
effect of the implementation of a change in accounting policy
or revisions in accounting estimates.

APPENDIX D
GANTT CHART

Task Feb.14 Feb. Feb. Marc March April May May June June
, 2023 16, 23- h 10- 29- 17- , 11, 18, 2, 10-11,
2023 March 16, April 25, 202 202 2023 2023
2, 2023 2023 11, 2023 3 3
2023

Formulate
Research
Topic

Presentatio
n of
Research
Topic

Preparatio
n and
Submissio
n of Study
Variables
and
Adopted
Questionn
aire

Preparatio
n and
Submissio
n of
Statement
of the
Problem
and
Conceptual
Framework

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
 Preparatio
n and
Submissio
n of
Chapter 2
(Methodolo
gy)

Preparatio
n and
Submissio
n of RRL
and
Theoretical
Framework

Preparatio
n and
Submissio
n of
Introductio
n, Null
Hypothesis
, Scope
and
Delimitatio
n of the
Study and
Definition
of Terms

Preparatio
n and
Submissio
n of
Printed
Copy of
Research
Proposal

Submissio
n of Final
Revised
Research
Proposal

Defense
For
Research

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
Proposal

CHAPTER 3

DATA ANALYSIS, AND FINDINGS

This chapter discusses the interpretation and presentation of statistical

data relative to the problem posited. The purpose of the study was to analyse

the efficiency and effective of computerized accounting system on financial

reports of non-life insurance providers.

Table 1.1 Current level of the computerized accounting system employed by

non-life insurance providers in terms of Internal Control

Std. Descriptive
Statements Mean
Deviation Interpretation
Computerized accounting system
predefined users only can have access to 3.71 0.46 strongly agree
the system with the use of password
Computerized accounting system users
are assigned specific roles to ensure 3.61 0.57 strongly agree
segregation of duties.
Using computerized accounting system
can check and confirms the accuracy of 3.71 0.46 strongly agree
data entered in the system.
Computerized accounting system is
protected from intrusions, information 3.50 0.51 strongly agree
theft, and data manipulation.
Computerized accounting system can
provide audit trail on users and 3.54 0.51 strongly agree
transactions.
Overall Mean Strongly
3.61 0.50
agree

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
 Table 1.1 shows the result of current level of the CAS employed by non-

life insurance providers in terms of Internal Control. Among the statement of

internal control, “CAS predefined users only can have access to the system

with the use of password” with the mean of 3.71 and standard deviation of

0.46 followed by “Using of CAS can check and confirms the accuracy of data

entered in the system” obtained the mean of 3.71 and standard deviation of

0.46. Next “Computerized accounting system” users are assigned specific

roles to ensure segregation of duties” with the mean of 3.61 and standard

deviation of 0.57. “Computerized accounting system can provide audit trail on

users and transactions” with the mean of 3.54 and standard deviation of 0.51.

And lastly, “Computerized accounting system is protected from intrusions,

information theft, and data manipulation” obtained the lowest mean of 3.50

and standard deviation of 0.51. The overall mean revealed score of 3.61 and

standard deviation of 0.50 which the respondents strongly agree with the

statement at high level.

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
Table 1.2 Current level of the computerized accounting system employed by

non-life insurance providers in terms of Automated Data Processing

Std. Descriptive
Statements Mean
Deviation Interpretation
Computerized accounting system
performs tasks and process 3.54 0.51 strongly agree
seamlessly
Computerized accounting system
3.50 0.51 strongly agree
has data validation functionalities
Computerized accounting system
perform transactions posting 3.54 0.64 strongly agree
automatically.
Computerized accounting system
perform accounts balancing 3.54 0.58 strongly agree
functions automatically.
Using computerized accounting
system has accounts reconciliation 3.43 0.57 strongly agree
functionality.
Overall Mean 3.51 0.56 strongly agree

Table 1.2 present the result of current level of CAS employed by non-

life insurance providers in terms of Automated Data Processing. Among the

statement there are three that obtained the highest mean of 3.54 but in

different standard deviation which is the “CAS performs tasks and process

seamlessly” with the standard deviation of 0.51, “CAS perform transactions

posting automatically” with the standard deviation of 0.64 and lastly the “CAS

perform accounts balancing functions automatically” with the standard

deviation of 0.58. Followed by “Computerized Accounting System has data

validation functionalities” with the mean of 3.50 and standard deviation of

0.51. However, the “Using computerized accounting system has accounts

reconciliation functionality” obtained the lowest mean of 3.43 and standard

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
deviation of 0.57. The overall mean score of 3.51 and standard deviation of

0.56 which is the respondent interpreted as strongly agree at high level.

Table 1.3 Current level of the computerized accounting system employed by

non-life insurance providers in terms of Relational Database

Std. Descriptive
Statements Mean
Deviation Interpretation
Using computerized accounting
system can store large collection of 3.71 0.46 strongly agree
data.
Using computerized accounting
system enhance the maintenance
3.64 0.49 strongly agree
and retrieval of large collections of
data.
Using computerized accounting
system ensures the independence 3.57 0.50 strongly agree
and integrity of data
Computerized accounting system
ensures the security, backup, and 3.64 0.49 strongly agree
recovery of data.
Computerized accounting system
ensures concurrent access to data 3.64 0.49 strongly agree
and information in the system.
Overall Mean 3.64 0.49 strongly agree

Table 1.3 shows the result of current level of the computerized

accounting system employed by non-life insurance providers in terms of

Relational Database. Among the statement of relational database,” Using

computerized accounting system can store large collection of data” obtained

the highest mean of 3.71 with a standard deviation of 0.46 followed by “Using

computerized accounting system enhance the maintenance and retrieval of

large collections of data” with the mean of 3.64 and standard deviation of

0.49. Followed by Computerized accounting system ensures the security,

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
backup, and recovery of data with the mean of 3.64 and standard deviation of

0.49. Next, “Computerized accounting system ensures concurrent access to

data and information in the system” with the mean of 3.64 and standard

deviation of 0.49. While, “Using computerized accounting system ensures the

independence and integrity of data” obtained the lowest mean of 3.57 and

standard deviation of 0.50 as interpretation of strongly agree. The overall

mean score of 3.64 and standard deviation of 0.49 which means the

respondents strongly agree to the higher-level interpretation.

Table 1.4 Current level of the computerized accounting system employed by

non-life insurance providers in terms of Automated Reporting

Std. Descriptive
Statements Mean
Deviation Interpretation
Computerized accounting system
generates financial statements and 3.64 0.49 strongly agree
reports seamlessly.
Computerized accounting system can
generate the trial balance and other 3.68 0.48 strongly agree
general ledger reports automatically.
Computerized accounting system can
generate various financial statements
3.61 0.50 strongly agree
(ex. income statement, balance
sheet)
Computerized accounting system can 3.68 0.48 strongly agree
generate financial statements with

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
 comparative figures.
Financial statements and reports can
be generated from computerized
3.57 0.50 strongly agree
accounting system based in multiple
formats and reporting options.
Overall Mean 3.64 0.49 strongly agree
Table 1.4 shows the result of current level of the CAS employed by

non-life insurance providers in terms of Automated Reporting. Among the

statement, “Computerized accounting system can generate the trial balance

and other general ledger reports automatically” with the mean of 3.68 and

standard deviation of 0.48 followed by “Computerized accounting system can

generate financial statements with comparative figures” obtained the mean of

3.68 and standard deviation of 0.48. Next “Computerized accounting system

generates financial statements and reports seamlessly” with the mean of

3.64 and standard deviation of 0.49. “Computerized accounting system can

generate various financial statements (ex. income statement, balance sheet)”

with the mean of 3.61 and standard deviation of 0.50. And lastly, “financial

statements and reports can be generated from computerized accounting

system based in multiple formats and reporting options obtained the lowest

mean of 3.57 and standard deviation of 0.50. The overall mean revealed

score of 3.61 and standard deviation of 0.50 which the respondents strongly

agree with the statement at high level.

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
 Table 1.5 Current level of the computerized accounting system

employed by non-life insurance providers in terms of Enhancing Technologies

Std. Descriptive
Statements Mean
Deviation Interpretation
Computerized accounting system is
3.36 0.62 strongly agree
(or could be used) on a network.
Computerized accounting system is
(or could be migrated to) cloud 3.21 0.79 agree
based.
Computerized accounting system
can interface with point of sale 3.39 0.63 strongly agree
(POS) devices.
Computerized accounting system
support documents upload and 3.50 0.64 strongly agree
attachment.
Computerized accounting system
3.32 0.55 strongly agree
supports Email/SMS facilities.
Overall Mean 3.36 0.64 strongly agree

Table 1.5 shows the result of current level of the CAS employed

by non-life insurance providers in terms of Automated Reporting. Among the

statement, “, CAS support documents upload and attachment obtained the

highest mean of 3.50 and standard deviation of 0.64 followed by

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
“Computerized accounting system can interface with point of sale (POS)

devices” obtained the mean of 3.39 and standard deviation of 0.63. Next

“Computerized accounting system is (or could be used) on a network.” with

the mean of 3.36 and standard deviation of 0.62. “Computerized accounting

system supports Email/SMS facilities” with the mean of 3.32 and standard

deviation of 0.55. And lastly, “Computerized accounting system is (or could

be migrated to) cloud based obtained the lowest mean of 3.21 and standard

deviation of 0.79. The overall mean revealed score of 3.36 and standard

deviation of 0.64 which the respondents strongly agree with the statement at

high level.

Table 1.6 Current level of the Independent Variable indicators

Std. Descriptive
Indicators Mean
Deviation Interpretation
Internal Control 3.36 0.62 strongly agree
Automated data processing 3.21 0.79 agree
Relational Database 3.39 0.63 strongly agree
Automated reporting 3.50 0.64 strongly agree
Enhancing technologies 3.32 0.55 strongly agree
Overall Mean 3.36 0.64 strongly agree

Table 1.6 shows the summary result of the current level of the

computerized accounting system employed by non-life insurance providers.

Among the indicator, Automated Reporting obtain the highest mean of 3.50

and standard deviation of 0.64. Followed by “Relational Database” with the

mean of 3.39 and standard deviation of 0.63. Next by, “Internal Control” with

the mean of 3.36 and standard deviation of 0.62. “Enhancing technologies”

with the mean of 3.32 and standard deviation of 0.55. However, Automated

Data Processing obtained the lowest mean of 3.21 and standard deviation of

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
0.79 which is the respondent agree. The overall mean revealed score of 3.36

and standard deviation of 0.64 which is descriptive interpreted as strongly

agree that implying the respondent to high level.

Table 2.1 Quality level of financial reports generated by non-life insurance

providers as demonstrated in terms of Relevance

Std. Descriptive
Statements Mean
Deviation Interpretation
The presence of the forward-looking
statement helps forming expectations
3.50 0.51 strongly agree
and predictions concerning the future
of the company.
The presence of non-financial
information in terms of business
3.29 0.53 strongly agree
opportunities and risk complement the
financial information.
The company uses fair value of
3.43 0.57 strongly agree
historical cost.
The reported results provide feedback
to users of the annual report as to how
3.46 0.58 strongly agree
various market events and significant
transactions affected the company.
Overall Mean 3.42 0.55 strongly agree

Table 2.1 presents the findings regarding the quality assessment of

financial reports produced by non-life insurance providers, specifically in the

context of Relevance. Among the statements considered, "The presence of

the forward-looking statement aids in forming expectations and predictions

concerning the future of the company" achieved the highest mean of 3.50,

accompanied by a standard deviation of 0.51, indicating a notable respondent

inclination toward a strongly agree interpretation.

Subsequently, the statement "The reported results provide feedback to

users of the annual report on how various market events and significant

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
transactions affected the company" recorded a mean of 3.46, with a standard

deviation of 0.58. Following closely is the statement "The company uses fair

value rather than historical cost," with a mean of 3.43 and a standard

deviation of 0.57. However, the statement "The presence of non-financial

information regarding business opportunities and risks complementing the

financial information" obtained the lowest mean of 3.29, with a standard

deviation of 0.53.

The overall mean of 3.42, coupled with a standard deviation of 0.55, is

descriptively interpreted as strongly agree. This suggests a consensus among

respondents indicating a high level of agreement regarding the perceived

Relevance demonstrated in the financial reports analyzed.

Table 2.2 Quality level of financial reports generated by non-life insurance

providers as demonstrated in terms of Faithful Representation

Std. Descriptive
Statements Mean
Deviation Interpretation
Valid arguments provide to support
the decision for certain assumptions 3.46 0.58 strongly agree
and estimates in the annual report.
The company bases its choice for 3.46 0.51 strongly agree

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
 certain accounting principles on valid
arguments
The company, in the discussion of the
annual results, highlights the positive
3.57 0.57 strongly agree
events as well as the negative
events.
The company provides information
3.50 0.51 strongly agree
on corporate governance.
Overall Mean 3.50 0.54 strongly agree

Table 2.2 elucidates the quality assessment of financial reports produced by

non-life insurance providers, specifically within the realm of Faithful

Representation. Among the aforementioned statements, "The company, in the

discussion of the annual results, highlights both positive and negative events"

garnered the highest mean of 3.57, accompanied by a standard deviation of

0.57, signifying a respondent inclination toward a strongly agree

interpretation.

Following this, the statement "The company provides information on

corporate governance" recorded a mean of 3.50, with a standard deviation of

0.51. In contrast, statements such as "Valid arguments are provided to

support decisions regarding assumptions and estimates in the annual report"

and "The company bases its choice of certain accounting principles on valid

arguments" obtained the lowest means of 3.46, with standard deviations of

0.58 and 0.51, respectively, aligning with a strongly agree interpretation

according to respondent responses.

The comprehensive evaluation yields an overall mean of 3.50, coupled

with a standard deviation of 0.54, reinforcing the respondent's inclination

toward a strongly agree interpretation. This indicates a consensus among

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
respondents regarding the commendable Faithful Representation evident in

the financial reports under examination.

Table 2.3 Quality level of financial reports generated by non-life insurance

providers as demonstrated in terms of Understandability

Std. Descriptive
Statements Mean
Deviation Interpretation
The annual report is presented in a
3.71 0.46 strongly agree
well-organized manner.
The notes to the balance sheet and
the income statement are 3.61 0.50 strongly agree
sufficiently clear.
The use of language and technical
jargon and the annual report are 3.43 0.63 strongly agree
easy to follow.
Overall Mean 3.58 0.53 strongly agree

Table 2.3 delineates the outcomes of the quality assessment for financial

reports produced by non-life insurance providers, focusing specifically on the

facet of Understandability. Within the domain of Understandability, the

statement "The annual report is presented in a well-organized manner"

attained the highest mean of 3.71, accompanied by a standard deviation of

0.46, indicative of a strong agreement interpretation.

Subsequently, the statement "The notes to the balance sheet and the

income statement are sufficiently clear" followed with a mean of 3.61 and a

standard deviation of 0.50. However, the statement "The use of language and

technical jargon in the annual report is easy to follow" garnered the lowest

mean of 3.43, coupled with a standard deviation of 0.63, aligning with a strong

agreement according to descriptive interpretation.

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
 The aggregate evaluation yields an overall mean score of 3.58, along

with a standard deviation of 0.53, reinforcing the respondent's tendency

toward a strong agreement interpretation. This signifies a consensus among

respondents regarding the elevated level of Understandability manifested in

the financial reports under scrutiny.

Table 2.4 Quality level of financial reports generated by non-life insurance

providers as demonstrated in terms of Comparability

Std. Descriptive
Statements Mean
Deviation Interpretation
The company provides a comparison
of the results of current accounting
3.46 0.58 strongly agree
period with previous accounting
periods.
The information in the annual report is
comparable to information provided by 3.43 0.50 strongly agree
other organizations.
The company adjusts previous
accounting period’s figure in effect of
the implementation of a change in 3.57 0.50 strongly agree
accounting policy or revisions in
accounting estimates.
Overall Mean 3.49 0.53 strongly agree

Table 2.4 presents the findings regarding the quality assessment of

financial reports generated by non-life insurance providers, specifically

focusing on the aspect of comparability. Among the statements addressing

comparability, the statement, "The company adjusts the figures from the

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
previous accounting period in response to the implementation of a change in

accounting policy or revisions in accounting estimates," garnered the highest

mean of 3.57, accompanied by a standard deviation of 0.50. Following closely

is the statement, "The company provides a comparison of the results of the

current accounting period with previous accounting periods," which yielded a

mean of 3.46 and a standard deviation of 0.58.

Conversely, the statement, "The information in the annual report is

comparable to information provided by other organizations," received the

lowest mean of 3.43, with a standard deviation of 0.50. The overall mean

score of 3.49, coupled with a standard deviation of 0.53, suggests a

consensus among respondents, reflecting a strong agreement with the

assessment. This implies that respondents strongly agree with the proposition

that the financial reports demonstrate a high level of quality, particularly in the

context of comparability.

Table 2.5 Quality level of the Dependent Variable indicators

Dependent Variable Mean SD Verbal Interpretation

Relevance 3.42 0.55 strongly agree

Faithful Representation 3.5 0.54 strongly agree

Understandability 3.58 0.53 strongly agree

Comparability 3.49 0.53 strongly agree

Overall Mean 3.50 0.54 strongly agree

Table 2.5 presents a comprehensive overview of the quality

assessment for financial reports generated by non-life insurance providers.

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
The assessment encompasses various indicators, with "Understandability"

leading the rankings, attaining the highest mean of 3.58 and a standard

deviation of 0.53. Following closely is "Comparability," achieving a mean of

3.49 and a standard deviation of 0.53. Subsequently, "Faithful

Representation" follows suit, registering a mean of 3.5 and a standard

deviation of 0.54.

In contrast, "Relevance" reflects the lowest mean at 3.42, accompanied

by a standard deviation of 0.55. Respondents express a strong agreement

with this assessment, suggesting a unanimous belief in the high quality of

financial reports. The cumulative evaluation yields an overall mean score of

3.50 and a standard deviation of 0.54. This result unequivocally translates into

a strong agreement among respondents regarding the commendable quality

level of the financial reports in question.

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
Table 4. Test for the Significance of the Relationship between the Level of the

Independent and Dependent Variables

Decision
Current Quality Level of R
P on Null Interpretatio
Level of Financial coeffici
value hypothes n
CAS Reports ent
is

Internal Relevance 0.549 0.002 Rejected Significant

Control
Faithful 0.380 0.046 Rejected Significant
Representation

Understandability 0.628 0.000 Rejected Significant

Comparability 0.631 0.000 Rejected Significant

Automated Relevance 0.515 0.005 Rejected Significant

Data
processing Faithful 0.366 0.055 Accepted Not
Representation Significant

Understandability 0.537 0.003 Rejected Significant

Comparability 0.548 0.003 Rejected Significant

Relational Relevance 0.500 0.001 Rejected Significant

Database
Faithful 0.480 0.007 Rejected Significant
Representation

Understandability 0.559 0.010 Rejected Significant

Comparability 0.460 0.000 Rejected Significant

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
 Automated Relevance 0.511 0.005 Rejected Significant
Reporting
Faithful 0.748 0.000 Rejected Significant
Representation

Understandability 0.740 0.000 Rejected Significant

Comparability 0.787 0.000 Rejected Significant

Enhancing Relevance 0.850 0.000 Rejected Significant

technologie
s Faithful 0.816 0.000 Rejected Significant
Representation

Understandability 0.719 0.000 Rejected Significant

Comparability 0.768 0.000 Rejected Significant

Overall Overall Quality

current level of
0.870 0.000 Rejected Significant
level of Financial
CAS Reports

The table illustrates the findings regarding the relationship between the

efficiency and effectiveness of computerized accounting systems and the

quality of financial reports generated by non-life insurance providers across

various indicators. The results reveal significant associations in terms of

Internal Control, Relevance, Faithful Representation, Understandability, and

Comparability. This is evidenced by p-values of (0.002), (0.046), (0.000),

(0.000) respectively, all of which are below the 0.05 level of significance.

Consequently, the null hypothesis is rejected.

Automated Data Processing demonstrates significance in the context

of Relevance, Understandability, and Comparability, as indicated by p-values

of (0.005), (0.003), and (0.003), respectively, falling below the 0.05 level of

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
significance. However, in Faithful Representation, the p-value (0.055)

exceeds the 0.05 level, leading to the acceptance of the null hypothesis.

The analysis of Relational Database indicates a significant relationship

with Relevance, Faithful Representation, Understandability, and

Comparability, with p-values of (0.000), (0.007), (0.010), and (0.000)

respectively, all below the 0.05 level of significance. Consequently, the null

hypotheses are rejected.

Automated Reporting displays a substantial relationship with

Relevance, Faithful Representation, Understandability, and Comparability,

evidenced by p values of (0.005), (0.000), (0.000), and (0.000) respectively,

all below the 0.05 level of significance. Thus, the null hypothesis is rejected.

Enhancing Technologies exhibit a significant relationship with

Relevance, Faithful Representation, Understandability, and Comparability, as

reflected in p-values of (0.000), (0.000), (0.000), and (0.000) respectively, all

below the 0.05 level of significance. Consequently, the null hypothesis is

rejected.

In summary, the overall results indicate a high positive (negative)

correlation represented by the r coefficient of (0.870). The p-value of (0.000)

signifies a significant relationship between the efficiency and effectiveness of

Computerized Accounting Systems and the quality of Financial Reports,

leading to the rejection of the null hypothesis.

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
 CHAPTER 4

SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

This chapter discusses the summary of findings, conclusions and

recommendations to assess the efficiency and effectiveness of computerized

accounting system on financial reports of non-life insurance providers.

Summary of Findings

In the current level of computerized accounting system in terms of

internal control is strongly agree. Therefore, the computerized accounting

system on insurance providers can access control by using password and

accuracy check of data with the mean of 3.71 and std. deviation of 0.46. As

mentioned by Ahmed & Nganga (2019), internal controls are laws that

safeguard the assets of an organization, provide dependable financial

reporting, enhance compliance with regulations and laws and achieve

efficiency in operations.

In terms of automated data processing on computerized accounting

system is strongly agree on the seamless processing, transaction posting and

accounts balancing with the mean of 3.54 and std. deviation of 0.51, 0.64,

0.58 respectively. These findings align to the idea of Sacer & Oluic, (2013)

that the computerized accounting systems, these are steps to carried out

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
automatically, seamlessly, and almost simultaneously by the automated data-

processing subsystem with the click of a button.

In the current level of computerized accounting system in terms of

relational database is strongly agree and only the large storage obtain the

highest mean of 3.71 with the std. deviation of 0.46. This findings are align to

Agung, (2015) says that the computerized accounting systems are

characterized by relational database management subsystems, which helps in

the storage, maintenance, and utilization of large collection of data as well as

the preservation of data independence, integrity, scalability, and concurrent

access.

The automated reporting on the computerized accounting system is

strong agree interpretation. Therefore the efficiency and effectiveness of

computerized accounting system on financial report is very useful to generate

trial balance and general ledger report automatically and to financial

statements with the mean of 3.68 and std. deviation of 0.48. As mentioned of

Intuit Inc, (2018), a computerized accounting system is characterized by the

ability to automatically generate outputs in the form of reports that are based

on defined parameters and reporting options.

Enhancing technologies on computerized accounting system is

strongly agree on the support documents upload and attachment with the

mean of 3.50 and std. deviation of 0.64.

On the level of financial reports generated by non-life insurance as

demonstrated in terms of relevance, only the forward looking statement helps

expectations and predictions for the future of the company, obtain the highest

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
mean of 3.50 with the std. deviation of 0.51 and interpretation of strongly

agree.

Faithful representation on financial reports is strongly agree on the

discussion of the annual results highlights of the positive and negative events,

obtain the highest mean of 3.50 and std. deviation 0.51 with the interpretation

of strongly agree. The findings aligned to Maines & Wahlen (2016), that

faithful representation of financial information would be guaranteed when

financial statements are based on estimates and assumptions that match the

underlying economic constructs and standards, as well as highlight in a

neutral manner both positive and negative economic events.

In the term of understandability on financial reports only the report

organization obtain the highest mean of mean of 3.71 and the std. deviation of

0.46 with the interpretation of strongly agree. According Cheung, Evans, &

Wright, (2013), understandability is one of the essential qualities of

information in financial reports. Achieving the quality of understandability is

through effective communication. Thus, the better the understanding of the

information from users, the higher the quality that will be achieved

Comparability on the level of financial reports is very helpful to adjust

previous accounting in effect of implementation of change or revision in

accounting estimates obtain the highest mean of 3.57 and std. deviation 0.50

with the interpretation of strongly agree. In the findings aligned with the

concept of the study of EY (2013), comparability of financial information

requires consistency in accounting policies and procedures, accounting

estimates and adjustments, and information on any changes therein.

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
 On the overall result on the current level of computerized accounting

system and the quality level of financial reporting. In the computerized

accounting system only the automated reporting obtain the highest mean of

3.50 and std. deviation of 0.64 with the interpretation of strongly agree on the

otherhand the quality level of financial reports indicator, only the

understandability obtain the highest mean of 3.58 and std. deviation of 0.53

with the interpretation of strongly agree.

Overall, the results of the study show a high positive (negative)

correlation of (0.870) and p value (0.000) which indicates that there is

significant relationship between the efficiency and effectiveness of

Computerized Accounting System and the quality of Financial Reports since

there p value is less than 0.05. Therefore, the null hypotheses is rejected.

Therefore, the overall findings regarding to the study support the findings of

Kanakriyah (2016) that AIS usage enhances the overall quality of accounting

information.Kuraesin et al (2019) and Susanto (2017) indicated that an

increase in the quality of AIS would improve accounting information quality.

Conclusions

To establish the qualities financial reports generated by a computerized

accounting system. From these findings however, through computerized

accounting have much more paramount and unique qualities that still leave

computerized accounting as a better option to financial reporting to determine

the use of a computerized accounting system. From the findings, response is

high that the company runs its financial operations, right from the beginning

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
point of data entry, data processing and security to the end point of data

reporting of a financial nature in a computerized manner.

Recommendations

Based on the abovementioned findings and conclusion, the following

are set of realizations that the researcher wants to recommend for the future

studies;

1.1 Insurance companies should assure their clients that necessary

precautions and preparations are readily available to secure the

data. ICT professionals, customer support, backup units, and

contingency plans must always be ready at times like this.

1.2 Insurance companies should take care of all their employees and

create possible opportunities for them to be trained, manifest their

capabilities, and minimize job loss, especially in these trying times

where even the insurance provider must be

1.3 Insurance companies should assure the customer to provide the

strong accounting system to make sure that the accuracy of client

and maintenance of data will be satisfy.

1.4 Insurance companies assure the customer by taking care of their

financial reports with trustworthy not to manipulate the data together

with reports.

1.5 Insurance companies has to ability to enhance the lapses of the

company, therefore enhancing technologies components have the

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
 capacity to significantly advance the performance of the data, since

it has the capacity to improve the efficiency of the organization.

1.6 In the summary of the indicators the level of computerized

accounting system on Non-life Insurance Provider. Insurance

Company to have more sufficient intellectual capacity for

computerized technologies to ease the level of difficulty of data. I

strongly recommend that financial institutions should continuously

adopt a culture of utilizing computerized accounting systems that

provide easy preparation of financial reports. As seen from the

earlier chapter, computerized accounting systems perform

enormous tasks which if performed correctly provide the company

with accurate, efficient and timely reports.

2.1 The quantity level of financial reports generated by Non- life

Providers in term of Relevance, quality of reports generated affects

the quality of financial reports of the companies. therefore

recommends that in order to ensure that the customer have quality

understandable reports; they should invest in computerized

accounting system since it is seen to affect the financial reports to a

great extent of forward looking statement that helps forming the

expectation and predictions . The study further recommends that

leadership enhance financial reports at the organizations to a great

extent, the management should increase leadership effectiveness

in both management and board. The study further recommends that

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
 the transparency of the companies should continue being stable for

a better general operation of its activities.

1. 2.2 The quantity level of financial reports generated by Non- life

Providers in term of Faithful representation, the company should

maintain their discussion of the annual reports because of its

ability to ensure that financial statements are of quality.

1.3 The quantity level of financial reports generated by Non- life

Providers in term of understandability make sure that the

presentation of every annual report that well- organized to

maintain the proper and clearly statement.

1.4 The quantity level of financial reports generated by Non- life

Providers in term of Comparability, verifiability, faithful

representation, and understandability were highly significant on

the respondent’s assessment between quality of financial

statement produced by and quality of financial statement to

produce by adjusting accounting period of implementing

accounting policy and estimates.

1.5 In the summary of the Quality level of financial reports on Non-

life Insurance Providers is to establish the qualities of financial

reports generated through computerized accounting. The study

findings also identified a number of qualities or characteristics of

reports generated through computerized accounting. It is evident

that most of these qualities are unique to those of the reports

through this data.

Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284
Barangay 5, San Francisco, Agusan del Sur, Philippines 8501 | +63 85 3438327 | F: +63 85
8392284