A Conceptual Model of E- accounting: Mediating effect of Internal Control System on the Relationship Between E- accounting and the Performance in the Small and Medium Enterprises
Internal control systems and performance effects are crucial for success in SME. To attain effectiveness in the internal control system and performance, e- accounting needs to be provided by SME. This paper examines different characteristics of e- accounting in SME, including the mediator effects of the internal monitoring; integrate on how e- account relates to performance. E- Accountancy has been divided into four characteristics: information quality, cost reduction, fast decision making, and ease to use the software. This study provides a conceptual framework for examining the mediating effects of internal oversight set-up on how e- method of accounting relates to performance in SME. The study was performed by conducting a literature review of existing studies of the topic and related issues. Information was obtained from a combination of journal articles. Additionally, the literature went through critics and reviews for accuracy, relevancy, and other validating elements. It is vivid that the discerned e- accounting affects the internal monitoring system. The findings showcase that the domestic monitoring structure consequentially translates to improve the performance (Soudani, 2013). E- accountancy has a cluster of roles in SME that represent the collection, keeping of the data in regards to the exercises and the applications, data processing, information creation easier that enable the management team to enact foster decision making and cost reduction (Karagiorgos et al., 2010). However, to attain the quality of data required, internal monitoring plans that enhance the reliable recording of all the SME operations need to be implemented. In order to get lower auditor’s estimation on the control risk, more testing on the competency of the E- accountancy and domestic structures should be done. It is commonly accepted that were using e- accounting, the SME needs to have internal control systems to examine the quality of the system’s actions in terms of time (Al-Mbaidin, 2014).
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