“ASSESSMENT OF ACCOUNTING SYSTEM IN PUBLIC ENTERPRISES: A CASE OF ETHIOPIAN ELECTRIC UTILITY

Abstract

This study aims to assess the accounting system in public enterprises in the case of Ethiopian electric utility by studying the financial recording and reporting of accounting systems in the company. The study has employed a descriptive survey design. In order to gather the required data, questionnaire, Focus Group Discussion (FGD) and key informant interview have been used. A sample size of 86 were used from a population of 110 staff of finance department Ethiopian electric utility in Addis Ababa head office. To ensure the representativeness of the direct users of the accounting system, simple random sampling technique was adopted. Data for this study was collected using self-administered questionnaires to the direct users of the accounting system in finance department of Ethiopian Electric utility questioners and interviews to heads of finance department and staffs of financial analyst/experts in Ethiopian Electric Utility. Responses of survey data were analyzed using SPSS software (V. 16) and the findings were presented using tables and figures. The study has found that the characteristics of accounting systems influence the presentation of financial report in planning, controlling and administrative decision making of Ethiopian electric utility. Therefore the purpose of this study is to examine the efficiency of Accounting System on financial report presentation measures using the primary and secondary data in which it was found that accounting system is a great importance to the company in which it helps in facilitating management decision making, internal controls, quality of the financial report, and it facilitates the company’s transaction. It’s also plays an important role in economic system, and the study recommends that businesses, firms and organization should adopt the use of accounting system because adequate accounting information is essential for every effective decision making process and adequate information is possible if accounting information systems are run efficiently also, efficient Accounting Systems ensures that all levels of management get sufficient, adequate, relevant and true information for planning and controlling activities of the Ethiopian electric utility at head of Addis Ababa.