HOW HAS TECHNOLOGY INFLUENCED FINANCIAL REPORTING PROCESS IN ACCOUNTING FIRMS? : An analysis of two international audit firms in Liberia

Abstract: Technology helps firms maintain data flow, track processes and maintain employee records. Technology makes it possible for firms to operate efficiently and effectively with minimal manpower and helps to reduce operating costs. Because of its ability to minimize errors and reduce human interventions, technology delivers instant financial reports with accuracy and reliability. Even though findings from the study revealed that the use of technology has a positive influence in financial reporting, system breakdown leads to data loss which has the propensity to hinder stakeholders from receiving timely financial reports. Moreover, findings reveal that audit firms are exposed to information security risk such as virus attacks and hacking of the system.The old way of financial reporting had changed completely in some parts of the world while in other parts it is gradually changing. But how technology is affecting financial reporting processes all over the world and in Liberia specifically. The aim of this thesis is to investigate and analyze the transformation technology has caused to the financial reporting processes. The research question that guided the study was: How has technology influenced financial reporting processes of two international auditing firms in Liberia?In this study, qualitative method and interpretive research approached were used which enable us to gain deeper insights to the research purpose and address our research questions. The primary data was generated from purposive sampling of six semi-structured interviews from preparers of financial reports ranging from managers to senior associate. These participants were used due to their experiences working with technology which enable us to gain an understanding of how technology has transformed financial reporting processes. Financial reporting and technology are widely researched, but in the context of Liberia there is scare literature of how technology has influenced financial reporting in audit firms. Therefore, this study focuses on the preparers of the financial reports of the two international audit firms in Liberia.The aim of this thesis is to investigate and analyze the transformation technology has caused to the financial reporting processes and to investigate how preparers are trained to keep up with the pace of technology. As such, our theoretical framework used was based on the various technology used globally, efficiency and effectiveness, competence and skills, Technology Acceptance Model (TAM), ABC model, financial reporting characteristics and financial reporting qualities.The findings further suggest that technology affects the security of confidential information and quality of the financial information. First and foremost, technology affects a firm’s ability to communicate with stakeholders. In modern business environment, it is necessary for management to communicate to stakeholders quickly and clearly without hindrance.The contributions of this study cannot be overemphasized. The study contributed knowledge on the use of technology in financial reporting. The study serves as a guide to local audit firms, universities and government to include or improve the financial reporting process of institutions