Abstract:
Today most of companies depend upon the computerized accounting systems
and these systems have more complex in meeting information needs. Due to
the enhancement of business complexity in recent decades, companies are
facing internal control problems associated with the use of computers and
computer related systems. The main purpose of this study is to examine the
accountants’ perception of internal control problems associated with the use
of computerized accounting systems exist. For this study, the main instrument
of data collection was the questionnaire. Data is collected from 84 accountants
in selected companies covering different types of industries and Descriptive
statistics such as frequency distributions, percentage distribution of responses,
means, cross tabulation and ANOVA were used to analyze the data. The
results indicate that there are internal control problems exist with the use of
computerized accounting system in Sri Lankan companies. The major
important problems are Unfamiliar user may enter incorrect data, Great
potential for error by employees as a result of insufficient knowledge about
the system ,Great speed of computers can be manipulated to the advantage of
users, New sources and potential for errors are likely to arise in the: Hardware
and software, Duties are concentrated within the computer (i.e. no separation
of duties as in the manual system), Information can be changed without
physical traces, concentrated information is easy to steal and Electronic
information is easy to lose, Employees, customers and other users trust the
computer output .However, they perceive that certain control procedures can
be undertaken to overcome them such as authorized access to computers,
Proper system design, Use physical controls and proper authorization, Use
backup copies, only authorized people should have access to the records, Use
physical control and cross-check and Use control totals to check computer
results .It was found that the problems in the storage level are most frequently
occurred internal control issues.
