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The impact of information technology adoption on internal controls adaptation

The impact of information technology adoption on internal controls adaptation The adoption of information technology/information systems (IT/IS) makes it possible to automate the tasks of approving, recording, processing and reporting of transactions. To ensure operational performance, financial information reliability and legal compliance, internal control mechanisms should be gradually constructed into the IT systems, according to the computerisation of the organisation, in order to continue to exercise the controls. However, the adoption of new IT systems often results in internal control deficiencies (ICD) and operational risks due to differences in the perceptual frames of different groups, and hence, a failure in internal controls adaptation. Therefore, this study referred to technological frames of reference (TFR) in order to propose an internal control adaptation model (ICAM) for IT systems adoption. This study explored a case of new IT system adoption in a company and gathered the longitudinal data in order to explain the process of internal control adaptation and the improvements of ICDs, as well as validate the propositions developed by this study. The results can serve as a reference in the construction of internal control mechanisms for new IT systems adoption and as a theoretic foundation of further studies. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Business and Systems Research Inderscience Publishers

The impact of information technology adoption on internal controls adaptation

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References (40)

Publisher
Inderscience Publishers
Copyright
Copyright © Inderscience Enterprises Ltd. All rights reserved
ISSN
1751-200X
eISSN
1751-2018
DOI
10.1504/IJBSR.2014.058006
Publisher site
See Article on Publisher Site

Abstract

The adoption of information technology/information systems (IT/IS) makes it possible to automate the tasks of approving, recording, processing and reporting of transactions. To ensure operational performance, financial information reliability and legal compliance, internal control mechanisms should be gradually constructed into the IT systems, according to the computerisation of the organisation, in order to continue to exercise the controls. However, the adoption of new IT systems often results in internal control deficiencies (ICD) and operational risks due to differences in the perceptual frames of different groups, and hence, a failure in internal controls adaptation. Therefore, this study referred to technological frames of reference (TFR) in order to propose an internal control adaptation model (ICAM) for IT systems adoption. This study explored a case of new IT system adoption in a company and gathered the longitudinal data in order to explain the process of internal control adaptation and the improvements of ICDs, as well as validate the propositions developed by this study. The results can serve as a reference in the construction of internal control mechanisms for new IT systems adoption and as a theoretic foundation of further studies.

Journal

International Journal of Business and Systems Research – Inderscience Publishers

Published: Jan 1, 2014

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