The Internal Control Factors and Organizational Readiness Affecting the Efficiency of Automated Accounting System Implementation in Small and Medium Enterprises in the Upper Central Region

Abstract

This research aimed to 1) examine the internal control factors affecting the effectiveness of automated accounting system application among small and medium-sized enterprises in the Upper Central Region of Thailand, and 2) examine the organizational readiness factors affecting the effectiveness of automated accounting system application among small and medium-sized enterprises in the Upper Central Region of Thailand. This study employed a quantitative research approach. The sample consisted of 426 executives or accounting personnel of small and medium-sized enterprises in the Upper Central Region of Thailand. The research instrument was a questionnaire. Data were analyzed using frequency, percentage, mean, standard deviation, Pearson’s correlation coefficient, and multiple regression analysis. The findings revealed that 1) internal control factors jointly explained 72.5–74.3% of the effectiveness of automated accounting system application in each dimension. The control environment and monitoring and evaluation had positive effects on all five dimensions of effectiveness, namely accuracy and reliability, auditability, completeness of information, timeliness, and relevance to decision-making. Risk assessment, control activities, and information and communication affected only certain dimensions of effectiveness. 2) Organizational readiness factors jointly explained 73.7–76.9% of the effectiveness of automated accounting system application in each dimension. Organizational culture, organizational policy, organizational resources, and management had positive effects on all five dimensions of effectiveness, whereas organizational structure affected accuracy and reliability, auditability, completeness of information, and relevance to decision-making, but did not have a statistically significant effect on timeliness.