THE ROLE OF ACCOUNTING INFORMATION SYSTEM IN ENHANCING INTERNAL CONTROLS IN AN ORGANIZATION: BASIS FOR PROPOSED IMPLEMENTATION PLAN

Abstract

Advancements in technology have significantly transformed Accounting Information Systems (AIS), improving both operational efficiency and strategic decision-making. These systems have evolved from traditional manual bookkeeping to advanced digital platforms, including cloud-based solutions. This shift has minimized the risk of data loss and enabled the automation of essential business functions such as inventory management, billing, accounting, and order processing. As a result, AIS plays a critical role in preventing sales losses, reducing inventory mismanagement, and strengthening internal controls within organizations. This study employed a descriptive quantitative research design. A total of 15 employees were selected using purposive sampling to ensure the inclusion of individuals with relevant knowledge and experience. Survey questionnaires served as the primary data collection instrument, allowing the researchers to gather structured and measurable responses related to the topic under investigation. Integrating Accounting Information Systems (AIS) into internal control frameworks presents several key challenges for organizations. The most frequently cited issue, reported by 10.56% of respondents, is the significant time and resources required, underscoring the importance of strategic planning. System complexity (9.15%) also poses a barrier to seamless integration with existing controls. Other commonly reported challenges (8.45%) include insufficient employee training, high implementation costs, limited technical support, difficulties in system monitoring, compatibility issues, and contractual disputes. Additionally, employee resistance and regulatory compliance concerns (7.75%) further complicate AIS adoption. Issues related to data accuracy and ambiguous contract terms (7.04%) continue to affect system reliability. To ensure successful AIS integration, organizations must prioritize employee training, effective change management, sufficient budget allocation, and system compatibility. The study concludes that the successful implementation of Accounting Information Systems (AIS) is strongly influenced by user acceptance, positive attitudes, and behavioral intention. Furthermore, information quality and service quality were identified as critical factors that significantly impact both the intention to use AIS and overall user satisfaction. Therefore, organizations aiming to strengthen their internal control systems should prioritize comprehensive employee training, cultivate a supportive environment for technology adoption, and uphold high standards of information and service quality within their AIS frameworks.