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The Role of Information Technology Systems (IT) on the Development of Effective Internal Controls. Desktop Study

Author

Listed:
  • Newman, Wadesango

    (University of Limpopo)

  • Sandu, Yolanda

    (Midlands State University)

  • Lovemore, Sitsha

    (Midlands State University)

Abstract

Research Question: What is the role of Information Technology on the development of effective internal controls of companies? Motivation: Companies can now support operations with IT systems to improve operating performance. As a result, companies must adapt their technique and method of internal control in accordance with computerization (AIS) to exercise effective control because the adaptation of quality internal control has an impact on operations and the achievement of operations Idea: The purpose of the study was to establish the role of Information Technology Systems (IT) on the development of effective internal controls. Data: A literature review methodology drawing on grey literature and published work elicited data for the study Tools: it can be denoted that despite the importance of information systems, challenges are imminent when adopting and implementing them. Staff should have the ability to embrace the system as well as finding the best system to use Findings: The findings indicated that information systems pose challenges when trying to adopt them. The major challenge was finding the best compatible information system and having the staff that portray familiarity and knowledge of the information systems. Contribution: Companies should support operations with IT systems to improve operating performance. As a result, companies must adapt their technique and method of internal control in accordance with computerization (AIS) to exercise effective control because the adaptation of quality internal control has an impact on operations and the achievement of operations.

Suggested Citation

  • Newman, Wadesango & Sandu, Yolanda & Lovemore, Sitsha, 2024. "The Role of Information Technology Systems (IT) on the Development of Effective Internal Controls. Desktop Study," Journal of Economic and Social Development, Clinical Journals Press, vol. 11(02), pages 01-14, September.
  • Handle: RePEc:ris:joeasd:0008
    as

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    References listed on IDEAS

    as
    1. Makomborero Bure & Robertson K. Tengeh, 2019. "Implementation of internal controls and the sustainability of SMEs in Harare in Zimbabwe," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(1), pages 201-218, September.
    2. Samson Mbano & Ongayi Wadesango & Newman Wadesango, 2022. "Effectiveness of Credit Management Policies as a Treasury Management Tool in Enhancing Financial Performance: The Case of Colcom Pvt Ltd. 2015-2019," International Journal of Economics and Financial Issues, Econjournals, vol. 12(5), pages 64-70, September.
    3. Newman Wadesango & Justice Walter Ruwende & Lovemore Sitsha, 2023. "Evaluating the Impact of Financial Management Practices on an Organization’s Financial Performance: A Case Study of Hwange Colliery Company," International Journal of Economics and Financial Issues, Econjournals, vol. 13(6), pages 203-208, November.
    4. Ahamed Al-dmour & Khaled Mofawiz Al-Fawaz & Rand Al-dmour & Nurah Musa Allozi, 2017. "Accounting Information System and Its Role on Business Performance: A Theoretical Study," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 8(4), pages 79-87, August.
    5. Cecilia Lelly Kewo & Cecilia Lelly Kewo, 2017. "The Influence of Internal Control Implementation and Managerial Performance on Financial Accountability Local Government in Indonesia," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 293-297.
    6. repec:eme:ijlma0:ijlma-12-2017-0304 is not listed on IDEAS
    7. Brahmadev Panda & N. M. Leepsa, 2017. "Agency theory: Review of Theory and Evidence on Problems and Perspectives," Indian Journal of Corporate Governance, , vol. 10(1), pages 74-95, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Information Technology Systems; Internal Controls;

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists

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