AN EMPIRICAL ANALYSIS OF INTERNAL CONTROL GOVERNANCE IN ACCOUNTING INFORMATION SYSTEMS: USERS’ DILEMMAS, STRATEGIC TRADE-OFFS AND OPERATIONAL PRACTICES
DOI:
https://doi.org/10.35631/JISTM.1142021Keywords:
Accounting Information System, Internal Control Governance, Operational practice and Strategic Trade-off, Procedural, Behavioural and Ethical User’s DilemmaAbstract
The Accounting Information System (AIS) is designed to collect, record, store and process financial transactions and data, converting them into meaningful information to support business planning and operational control. The increasing reliance on AIS has strengthened concerns regarding the effectiveness of controls and the ethical behaviour of system users. Internal Control governance (ICG) is the mechanisms through which AIS controls are design that can influence on users’ operational processes and ethical decision-making. Thus, this study explores the dilemmas faced by AIS users within the scope of Control Governance and seeks to understand how organizations can alleviate stringent governance requirements without compromising system integrity. A qualitative research approach was employed, involving primary data collection from a multinational company operating in Malaysia with overseas headquarters. Informants were selected from key departments, namely Finance, Human Resources (HR)and Information Technology (IT). Using thematic analysis, the study uncovered that AIS users often face challenges in executing their routine responsibilities under the constraints imposed by ICG frameworks. The findings highlight several ethical and procedural dilemmas that influence AIS user performance, particularly in areas such as regulatory awareness, compliance obligations and procedures, organizational culture, reporting standards and overall productivity and efficiency.
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