OROMIA STATE UNIVERSITY

COLLEGE OF FINANCE AND MANAGMENTSTUDIES

DEPARTMENT OF ACCOUNTING AND FINANCE

ARESEARCH ONASSESSMENT OF EFFECTIVENESS OF ACCOUNTING

INFORMATION SYSTEM (AIS) IN COMMERCIAL BANK OF ETHIOPIA;
THE CASE OF BORA WOREDA, BOTE BRANCH
BY:

NAME ID. No

1. NATHANAEL NEKATIBEB 02081

2. LEMI HAYILE 02063

3. YETINAYET GELASO 02110

ADVISOR:

IBRAHIM IMMU (M.A)

A RESEARCH SUBMITTED TO OROMIA STATE UNIVERSITY, COLLEGE

OF FINANCE AND MANAGMENT STUDIES, DEPARTMENT OF
ACCOUNTING AND FINANCE IN PARTIAL FULFILLMENT OF THE
REQUAIRMENTS FOR THE B.A DEGREE IN ACCOUNTING AND
FINANCE

Aug, 2021

Meki, Oromia, Ethiopia

 OROMIA STATE UNIVERSITY

AN ASSESSMENT OF EFFECTIVENESS OF ACCOUNTING INFORMATION SYSTEM

(AIS) IN COMMERCIAL BANK OF ETHIOPIA; THE CASE OF BORA WOREDA, BOTE
BRANCH

BY:

NATHANAEL NEKATIBEBE

LEMI HAILE

&

YETINAYET GELASO

APPROVED BY THE COMMITTEE OF EXAMINERS

CHAIR PERSON SIGNATURE

ADVISOR SIGNATURE

INTERNAL EXAMINER SIGNATURE

EXTERNAL EXAMINER SIGNATURE

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 Acknowledgments
We would firstly like to thanks God for everything and we would like to express our gratitude to
our advisors for their patient guidance, encouragement and excellent advice throughout this
study. We are very fortunate to be under their supervision, as they embraced every responsibility
of a principal supervisor to guide our research.

We are thankful to our friends, families and all concerned bodies for their help, support and
valuable discussion in conducting this study. We would like to acknowledge members in
commercial bank of Ethiopia Bote Branch, the manager and all supportive staffs of the Bank.

Finally, we express our great appreciation and enormous thanks to those who are involved
directly or indirectly in conducting this study.

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 ABSTRACT
This study is focused on Assessment of effectiveness of accounting information system (AIS) in
Commercial Bank of Ethiopia, the case of Bote branch. An accounting information system is very
important to run the operation of the bank effectively and efficiently. That is why the researcher
is intends to focus more on this topic. In doing so, the researcher tried to identify the causes of
the problems facing in the bank. The study has five chapters. The first part tries to identify
causes for the problem, objectives, scope and limitation of the study. The second part contains
both theoretical and empirical review of literature. The third part describes methodology of the
study that used to conduct the research. For instance sample and sampling techniques, source of
data, data colleting instrument and method of data analysis are used. The fourth parts this study
emphasis on the presentation of data. Finally, the last part is emphasized on summary of the core
finding, conclusion and recommendation. Generally, the objectives of doing this research is to
assess effectiveness of accounting information system in commercial bank of Ethiopia in Bote
district. To conduct this study primary source of data will be used. At the end the data will be
analyzed through descriptive method by using table and percentage forms.

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 Contents for Research
Page
Table of Contents i

List of tables and characters ii

Approval iii

Acknowledgement iv

List of Acronyms v
Abstract vi

1. INTDODUCTION 1
1.1 Back ground of the study 1
1.2 Profile of the organization 2
1.3 Statement of the problem 2
1.4 Research question 3
1.5 Objective of the study 3
1.5.1 General Objective 3
1.5.2 Specific objectives 4
1.6 Significance of the study 4
1.7 Scope of the study 4
1.8 Limitation of the study 4
1.9 Organization of the paper 5
1.10 Definition of terms and concepts 5
2. LITERATURE REVIEW 6
2.1 Theoretical Review 6

2.1.1 Information system 6

2.1.2 Value of information 6
2.1.3 What makes information useful? 6
2.1.4 General use of Accounting information 7
2.1.5 Characteristics of Accounting information 8
2.1.6 Accounting information in Banking activity 9
2.1.7 Accounting Information System 9
2.1.8 The role of Accounting Information in bank 10

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 2.1.9 Components of Accounting Information System 11
2.1.10 Objectives of Accounting Information System 13
2.1.11 Features of AIS 15
2.1.12 AIS Used in the banking system 16
2.1.13 Loan Accounting Application 17
2.1.14 Mortgage Banking application 17
2.1.15 Customer Account Application 17
2.1.16 Internet Banking Application 17
2.1.17 Basic Sub-System in the AIS 18
2.1.18 Importance of AIS 19
2.1.19 Accounting Information System and organization 20
2.1.20 AIS and Decision 22
2.1.21 Management Concept and its effects on AIS 24
2.1.22 AIS and Performance measure 25
2.1.23 Accounting information system effectiveness 26
2.2 Empirical Review 26
3. RESEARCH DESIGN AND METHODOLOGY 27
3.1 Introduction 27
3.2 Research Design 27
3.3 Source of data 27
3.3.1 Primary Source 27
3.3.2 Secondary source 27
3.4 Data Collection Techniques 27
3.5 Target population, Sample Techniques and Sample size 28
3.5.1 Target population 28
3.5.2 Sampling Techniques 28
3.5.3 Sample size 28
3.6 Method of data analysis and Interpretation 28
3.7 Ethical Consideration 28
4. DATA PRESENTATION, ANALYSIS AND INTERPRETATION 29

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 4.1 Introduction 29
4.2 Data Analysis 29-37
5. SUMMARY CONCLUSION AND RECOMMENDATION 38
5.1 Summary 38
5.2 Conclusion 39
5.3 Recommendation 40
. LIST OF TABLES
PAGES
Table1: Back ground information of the employers 29
Table2: Respondent response on how EBC gets advantage by using AIS 30
Table3: The contribution of AIS for the attainments of organization objectives 30
Table4: How the bank is efficient by using AIS 31
Table5: Awareness of CBE workers about the use and implementation of AIS 31
Table6: The linkage of the AIS in value chain in CBE 32
Table7: The effectiveness of AIS in decision making 32
Table8: How AIS helps in department decision making 33
Table9: The effect of AIS in quality decision making of your organization 33
Table10: The role of AIS in your bank district administration 34
Table11: Does the knowledge gap exist in using of AIS in your district 34
Table12: Responses on how to solve the knowledge between employers 35
Table13: Additional problems exit on implementation of AIS in your district 35

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 ABBREVIATION AND ACRONYM

CBE- Commercial Bank of Ethiopia

AIS- Accounting information system

IT- Information technology

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