THE ROLE OF ACCOUNTING INFORMATION SYSTEM FOR INTERNAL CONTROL (IN CASE STUDY OF HIBRET BANK IN WOLKITE BRANCH)

Abstract

This study was aimed at determining the role of accounting information system for internal control in case study of Hibret bank in wolkite branch. The general objective of the study was to investigate whether the application of accounting information system affects the quality of internal control. Hibret bank in wolkite branch have total of 21 employees. The researcher contacted with 15 employee respondents by distribution of questionnaires for the employees of the bank and interview with the branch manager of the bank. The study was concerned on qualitative data which was collected from primary sources & Case study type of research design was adopted for the study. The researcher used descriptive analyzing method to analyze data. The study showed that accounting information system play vital role for internal control in reducing risk, error and frauds for effectiveness and efficiency information and to prepare financial statement. On this basis, it’s recommended that AIS of Hibret bank of wolkite branch collect store and process data to support supply of or provides information needed for decision making, producing managerial reports and financial statements effectively and efficiently by using computer system. However further research is needed on the main branch of the bank which is located in Addis Ababa or the bank wholly in all branches in Ethiopia.