The Mediating Role of the IS/IT Auditor for Quality Assurance in the Selection of Accounting Software Packages for SMEs in Developing Economies

Abstract

This research designed and tested a model for the selection adoption, customization, and implementation of the best accounting software among the lot that has flooded the software market recently in developing countries. The model assessed the mediating role of the Information Systems (IS) Auditor to mitigate the risks of selecting the wrong packaged software to the barest minimum in developing countries. The researchers analyzed the association that exists between eight variables — Basic Functionality (BF), General Determinants (GD), Package Features (PF), Customization Capability (CC), Financial Reporting Capabilities (FRC) and the IS Auditor (IS/IT Auditor. The study was cross-sectional which purposively sampled professional experts from selected SMEs across Ghana to evaluate the eight variables in the model. 260 experts participated in the assessment. The Delphi Technique was used to reach a consensus on the applicability of the variables in the model. The variable measurement items in the model were subjected to three rounds of scrutiny as required by the Delphi Technique. Multiple regression analysis was also computed in Smart PLS 3 to determine the correlation among the variables in making an appropriate CASP selection decision. The internal consistency and reliability of the dataset were estimated using Statistical Package for Social Sciences. The results point to a positive association between all the variables assessed. The values for BF, GM, PF, CC, FRC and IS/IT Auditor, were 0.509, 0.621, 0.511, 0.632, 0.507 0.454. 0.596 and 0.590, respectively. This is substantiated by the average Kendall’s [Formula: see text] of 0.17. Chi-square ([Formula: see text] values ranging between 134.55 and 497.28 for all the three rounds of evaluation and intra-class correlation values ranging from 0.56 to 0.95 affirmed that consensus was achieved. It means that none of these variables could be included in the CASPs decision without the IS/IT Auditor mediating to check its strength in appropriate CASPs selection. Cronbach’s [Formula: see text] values ranging between 0.719 and 0.924 were computed to determine the internal consistency and reliability of the datasets. The average variance extracted (AVE) for each variable was higher than 0.5 which implies that the convergent validity of the construct is still adequate. The triangulations of these variables using different statistical values have proven the robustness and resilience with which IS/IT Auditor could assist in selecting the best CASPs package with lesser risks of implementation failures in developing economies. The model is expected to help SMEs in developing countries select the best CASPs packages among the lots for successful implementation. It is expected that it will serve as a wake-up call for policymakers to adopt a roadmap to enable SMEs to make the best CASPs buying decision. It is also envisaged that academic institutions will also fill the software adoption illiteracy gap by training more graduates in hands-on computerized accounting to increase selection and implementation awareness.