The recent corrupt practices have raised lot of questions on the extent of reliability of the accounting system in both private and public sector. There have been series of criticism on the manual accounting system under which high level of misappropriation and manipulation exist. This study examined the relationship between computerized accounting system and financial reporting quality of manufacturing firms in South-South Nigeria. The cross-sectional survey research design was adopted for the study with a population of 115 manufacturing companies in South-South Nigeria. Data were retrieved using questionnaire as research instrument. Simple Bivariate analysis was used to analyze the data gathered with the aid of statistical package for social sciences software. The study revealed a strong positive significant relationship between sage accounting software and financial report reliability. The study also revealed a moderate significant relationship between sage accounting software and financial report timeliness. Also, the study revealed that there was a moderate significant relationship between quick-book accounting and financial reporting measures. The study concluded that computerized accounting system has positive significant relationship with financial reporting quality of manufacturing firms in South-South Nigeria. The study recommended that manufacturing firms should adopt computerized accounting system in order to trigger capacity for improved financial reporting reliability. Manufacturing firms should strengthen their database security mechanism as this is one of the major drivers in computerized system. The Manufacturing firms should continuously improve on the digital literacy of their staff as this will go a long way in enhancing the firms’ financial report timeliness.
Eniema et al. (Tue,) studied this question.