Impact of Accounting Information Systems Quality on Accounting Information Quality

The impact of Accounting Information Systems Quality on Accounting Information Quality Dr. Ahmed Yass Algrari PhD in information technology/ Cihan University / suliymania Mr. Rebwar Mohammed Ahmed MSc in Accounting / University of Sulaimani / College of Commerce

Introduction The accounting information quality data is the basis to rely on in reaching good information that is valuable in creation various decisions regarding the processes of the firm efficiently. Therefore, the nonappearance of this quality leads to weakening the used decisions and lead to incorrect decisions, which causes loss to decision makers. In concerns of the Iraqi Telecommunication companies, there is an absence of clearness about the nature of the used accounting information systems, and an absence of clearness concerning the quality of accounting information data. However, we formulate the problem of the study as following questions: 1. What is the impact of the use of accounting information systems on the quality of accounting Information in Asia Cell Telecommunication Company? 2. What is the quality level of the accounting information that is relied on Asia Cell Telecommunication companies in Iraqi Stock Market?

Accounting Information System Quality Accounting information systems play crucial and important role, providing information that could help the organization s management perform its duties to the fullest. the accounting information system to be of high quality, and should be distinguished from other systems. And the most important features of AIS should identified as follow : -Alignment: Refers to the alignment of the accounting information system with external environment surrounding the entity, as well as the duties and restrictions on management. - Integration: The integration of the accounting information system with other secondary systems, such as management information systems.

-Differentiation: The accounting information system makes a distinction between accounting information in terms of time , organization Planning and policy information covers long-term periods. -Flexibility: The ability of the accounting information system to respond to changes in the organization structure of the entity, or the changes to the economic or competitive environment of the entity. -Response: The ability of the accounting information system to respond to the users of accounting information and their constant demand for accounting information. The quality of accounting information system is expressed as the measurement of its capability in producing the output that meet the information requirement for the decision makers.

Accounting Information Quality Accounting information is the data has been organized and processed to give meaning to the user. Users need the information to make decisions or improve the decision making process. Valuable information/Quality can be used in decision making should have the characteristic/traits of certain. A high quality product information own characteristics, attributes or quality that makes information through the information timely, easily understood and can be verified. Valuable information /quality accounting must have the characteristics: easily accessible, accurate/precise, complete, economical, flexible, relevant, reliable, safe, sample, available timely and verifiable.

Methodology of the Research Framework and Hypotheses Development. Based on the research questions the theoretical framework is as follow: The hypothesis is answer to the singularity that arises based on theory or previous researches. This study examines whether there is impact the quality of accounting information systems on the accounting information quality. The hypotheses describe as follows:

H1: There is no significant impact for the accounting information systems quality over the accounting data quality over Asia Cell Telecommunication Company. H2: There is no significant impact for the quality level of utilizing accounting information quality on accounting information quality that is Telecommunications Company. relied on Asia Cell Data: The population of the study consists of Asia Cell Telecommunication Company listed in Iraqi stock market. For the purpose of the study we conduct 40 employees working in Asia Cell as follow:

Sector: telecommunication Code: TASC ISIN: IQ000A1J4EL6 Address: Iraq- sulimaniya salim Street Asia Cell building/ Baghdad bravch/Al- mansour/ Hai- Al- Andlas /SEC(611) / st (11) buld(97) Phone: (+964)7701195006 Email: info@asiacell.com Website: www.asiacell.com Company activity: providing mobile communications services under the license qranted to it by the media and communications Establishing Date: 25/07/2007 Establishing Capital: 1.000.000 Listing date: 12/05/2007 Capital at Listing: 270.000.00 Executive Director: Amer Faez Al- sana a Auditor: Aras Mohammed Saeed / Adel Alhasson & co Participants Ratio: Private 100% Capital at 30/6/2018: 310.000.000

Financial Ratio 2017 2016 2015 2014 2013 Share Turnover Ratio 1.00 0.80 0.31 0.26 29.48 Earing per share (ID) 0.124 0.095 0.172 1.277 `2.150 Ownership Rate (%) 52.45 58.06 55.45 52.05 64.54 Interest Repetition 42.30 66.71 41.63 10.18 8.60 Trading Rate 0.80 0.69 0.48 0.52 0.95 Book Value (ID) 5.445 6.321 6.225 6.949 7.173 Working Capital -389.069,000,000 -710,666,000,000 -293,483,.000,000 -679,592,000,000 -337,417,000,00 Market Capitalization (million) 1627500 1968500 2219600 3510156 4995222 Profit Distributed (%) - 75% 25% - 150% Trading Statement 2017 2016 2015 2014 2013 3,108,716,991 2,481,269,083 948,563,835 694,901,561 79,593,248,901 No. of traded Shares 17,566,273,225 13,746,878,735 7,480,829,516 10,971,189,359 1.752,565,564,255 Trading Volume 5.250 6.350 7.160 13.000 18.500 Annual Closing Price 5.650 5.540 7.890 15.790 22.020 Annual Average price 6.900 7.500 13.500 19.500 24.200 Highest Price 4.800 3.450 5.100 11.250 18.300 Lowest Price

Results for Testing the Study Questions we analyzed the data which collected from Self- administered questionnaire is the survey in which respondents take responsibility. It is considered as a superior mode for minimizing bias and improving response rates. Data Analyses: The tables bellow demonstrates the reliability of 20 questions used in the study. The uppermost value of Cronbach alpha (0.940) in the statement followed by (0.934) in the statement. The value of Cronbach alpha of all statements is more than 0.7 and thus, the data is reliable for testing hypotheses.

Cronbach Alpha 0.837 0.930 No. Statements Accounting Information systems are flexible in data processing Accounting information systems help to achieve goals accurately and quickly Data are processed through accounting systems consistent with accounting polices 1 2 3 0.753 The cost of accounting information system in the company is consistent with the nature and size of the accounting information provided by the system Accounting information system in the company are easily updated data The AIS provides accounting information that comparable The AIS provides integrated accounting information that will effect the effectiveness of the company AIS are characterized by the case ease and high quality The inputs of AIS are presented in an easy and clear manner Input and output of AIS are maintained in a secure manner The company is distinguished by its accounting information quality Accurate accounting information help company make financial decisions Accounting information prepared to ensure its quality , accuracy and correctness 4 0.821 5 6 0.849 0.866 7 0.940 8 9 10 11 12 0.934 0.875 0.773 0.919 0.811 Table 2: Reliability Analysis 13 0.767 The provided accounting information are consistent with user s needs in different financial periods per year The company s Accounting information are flexible in its use in various aspects 14 0.931 15 0.836 16 0.812 The company s accounting information Are clear and uncomplicated The company s accounting information are easily understood among its various users 17 0.923 The company s accounting information are inclusive for all the financial aspects that users need in the decision making process The accounting information provided in appropriate time Accounting information are easily saved, are retrieved at any time 18 0.724 19 20 0.755 0.876

Test of the Hypotheses: The impact of accounting information system quality on the accounting information quality Telecommunication Company in Iraqi Stock market has been measured by applying simple independent variable is accounting information system quality and the dependent variable accounting information Quality. Furthermore, the table 3 below illustrates that the results of regression analysis of the two hypotheses in consolidated form. Hence, the first hypothesis shows that the value of R is 0.922 which means 92.2 percent variation in accounting information is explained by Accounting Information System, and the rest of the variation (1-?2) is an unexplained variation. As well as, the value of unstandardized beta coefficient is 0.664 and the p value is 0.006 (P<0.05). Therefore, the hypothesis one is rejected however; it means that there is a significant impact of Accounting Information Quality over accounting information quality of Asia Cell Telecommunication Company. in selected Asia Cell linear regression. The

On the Other hand, the second hypothesis shows that the value of R is 0.885 which means 88.5 percent variation in accounting information is explained by Accounting Information System, and the rest of the variation (1-?) is an unexplained variation. As well as, the value of unstandardized beta coefficient is 0.439 and the p value is 0.008 (P<0.05). Therefore, the hypothesis two is rejected hence there is a significant impact for the quality level of utilizing accounting information quality on accounting information quality that is relied on Asia Cell Telecommunications company.

Table 3: Show the results of Regression Analysis R Beta SE t P Value Results ?? Hypotheses H1 0.922 0.850 0.664 0.5742 9.548 0.006 rejected H2 0.885 0.763 0.439 0.6509 10.507 0.008 rejected Beta: Unstandardized Coefficient SE: Standard Error Source: Output of SSPSS_20

Conclusion: According to results, there is a significant relationship between accounting information systems quality and accounting information on Asia Cell Telecommunication Company. We believe that AIS contribute completely to their work. Besides, this study is not only beneficial for Asia Cell Telecommunication Company, organizations for recognizing the significant for usage of information technology in business world. Moreover, this study has limitation, which only reflects on Asia Cell Telecommunication Company in Iraqi Stock Market. Therefore, for future studies, it should be analyzed more organizations in Iraqi Stock Market. but also for other