FACTORS OF INTERNAL CONTROL AND ACCOUNTING INFORMATION SYSTEMS AFFECTING THE EFFECTIVENESS OF ACCOUNTING OPERATIONS

Abstract

The objective of this research is to study the factors of internal control and accounting information systems that affect the effectiveness of accounting operations. The sample group used in this study consisted of 400 individuals who work in accounting or are involved with accounting systems in construction businesses. The sample size was determined using Yamane’s formula. A questionnaire was used as the data collection instrument. The data was analyzed using descriptive statistics, including frequency, percentage, mean, and standard deviation, as well as inferential statistics, including Pearson’s correlation analysis and multiple regression analysis.

The research findings revealed that internal control factors—specifically the dimensions of control activities and monitoring—as well as accounting information system factors—particularly the quality of information and responsiveness to user needs—were positively correlated and statistically significant with the effectiveness of accounting operations. This includes data accuracy, auditability, and efficient use of resources, with correlation coefficients ranging from moderate to high levels. The recommendations from the research suggest that organizations should place importance on developing internal control systems systematically, as well as improving accounting information systems to be modern and of high quality in order to enhance accounting performance and increase the reliability of financial reporting. In addition, organizations should promote learning and provide training for personnel to gain accurate and efficient understanding of internal control systems and the use of accounting information systems. Such actions will help elevate the quality of accounting management, reduce the risk of errors and fraud, and enable organizations to flexibly and sustainably adapt to changing business environments.