Effect of Management Information System on Quality of Financial Reporting: A Case of the Institute of Accountancy Arusha, Tanzania

Abstract

This study sought to establish the relationship between financial management information
system and the quality of financial reporting at the Institute of Accountancy Arusha, using the
descriptive design. Data was analyzed through descriptive statistics and Pearson Correlation. The study
established that the management information system operates well at the Institute as financial
statements are prepared based on required standards. As a result, there is a significant positive
relationship between the Management Information System and the quality of financial reporting. This
means that management information system enhances the quality of financial reporting. The study
therefore recommends that the institute should make effort to maintain the effective management
information system as such is very important for not only financial reporting but also for other
operations in the learning institution.