THE ROLE OF ACCOUNTING INFORMATION SYSTEMS IN FIRMS’ PERFORMANCE DURING THE COVID-19 PANDEMIC

How to cite this paper: Lawal, A., Mohamed, R., Abdalla, H., ElKelish, W. W., & Lasyoud, A. A. (2022). The role of accounting information systems in firms’ performance during the COVID-19 pandemic. Journal of Governance & Regulation, 11(1), 45–54. https://doi.org/10.22495/jgrv11i1art5 Copyright © 2022 The Authors This work is licensed under a Creative Commons Attribution 4.0 International License (CC BY 4.0). https://creativecommons.org/licenses/by/

This paper investigates the influence of accounting information systems (AIS) on firms' performance during the COVID-19 pandemic and how they help enhance employees' performance and the external auditing process. This paper is qualitative in nature using the inductive approach. In-depth primary data were gathered through semi-structured interviews conducted in the year 2020. Due to the pandemic, the interviews with ten auditors were done online through the Zoom software application. The empirical findings of this paper show a positive impact of AIS on firms ' employees' more significant influence on a performance and and costs reduces auditing process. AIS performance and the human errors, eases operations, speeds up work tasks, and increases employees' productivity during the COVID-19 pandemic. The findings also show that there is no direct impact on firms' overall cash flow/revenues. This paper increases our how AIS can influence and improve understanding of firms' the performance and significance of implementation factors such as training. It provides practical guidelines for regulators and to systems information accounting utilize to managers perform better.

INTRODUCTION
Profit is the main motive of any business organization, and it can be calculated using a vital tool, firms' performance. Firms defined AIS as the amalgamation of accounting with information, technology, and managerial approach. On the other hand, Sajady, Dastgir, Hashem Nejad (2008) stated that the AIS notion is a crucial element of organizational mechanisms for effective and efficient decision-making and control in business organizations. Through the information provided by AIS, the internal and external operators can give their views regarding the businesses. Thus, it is unquestionable that technology's growth and expansion greatly impact all aspects of human life and businesses (Fitriati & Mulyani, 2020; Al-Hiyari, AL-Mashre, Mat, & Alekam, 2013). In line with this, AIS is also defined by Belfo and Trigo (2013) as a computer-based system to pursue accounting actions in combination with technology resources. Other scholars have defined the AIS as given below in Table 1.

Authors and year Definitions
Bodnar and Hopwood (2010) An accounting information system (AIS) symbolizes a series of bases (persons and equipment), which are intended to gather financial figures to the extent the data required for diverse decision-makers at a specific period.
Olusola, Olugbenga, Zacchaeus, and Oluwagbemiga (2013) AIS is a system that supports the gathering and collecting of data and factual concerning proceedings that have an economic influence on organizations. It also helps in the preservation, handling, and announcement of such information to both internal and external investors. Dandago and Rufai, (2014), Harash, Al-Timimi, and Alsaadi, AIS is an identical dynamic to all business organizations. It is considered to support the administration and gathering of data, raw data, or ordinary data and transform them into financial data for the persistence of supplying them to decision-makers. Okour (2016) AIS are viewed as one of the auxiliary information systems used in ringing out administrative functions such as organizing, planning, decision-making, and controlling for the superior taking advantage of the existing assets. (2018) AIS is a prescribed system for ascertaining, determining, collecting, scrutinizing, arranging, construing, and collaborating accounting information about a specific body to a certain group.

Al-Dalaien and Dalayeen
Additionally, AIS is a comprehensive tool in the hands of administrators struggling to attain competitive advantage during this era of rapid technological expansion, intensive attentiveness, and challenging demand from consumers and business owners (Fatima, Ishtiaq, & Javed, 2021). Thus, the purpose of this paper is to investigate the role of AIS in enhancing firms' performance, employees' performance, and the external auditing process during the COVID-19 pandemic. In the current scenario, organizations strive to enhance their profit in the market through technological tools. AIS is an essential tool for organizations as it plays a crucial role and is well-known as the source of internal information. Moreover, AIS is considered as the most helpful tool towards the accomplishment and success of organizational goals (Akgün & Kılıç, 2013). Past studies have discussed AIS and its impact on better organizational performance and effectiveness (Kouser,  The remaining structure of this paper is as follows. The literature review is presented in Section 2. Methodology and data collection are discussed in Section 3. Results and discussions are presented in Section 4. Lastly, Section 5 concludes with a summary and recommendations for future research.

LITERATURE REVIEW
Firms introduce and implement AIS in their daily operations for different reasons, which vary from one organization to another. However, AIS is a computer-based system that collects, stores, and analyzes accounting data to supply decision-makers with helpful information (Prasad & Green, 2015). Some firms use AIS to automate their accounting tasks (Huerta & Jensen, 2017), while others use AIS to improve strategies and efficiency (Hla & Teru, 2015). Therefore, several business firms operating in the field of accounting and auditing have invested in AIS, such as PricewaterhouseCoopers (PwC) and Ernst & Young (EY). Both firms are making use of AIS for process automation (Agnew, 2016), as well as Walmart (Nassauer, 2016). A brief summary of previous literature is presented in the Appendix,

AIS and firms' performance
There is an ongoing debate among scholars (Al-Waeli, Hanoon, Ageeb, & Idan, 2020; Sariwulan, 2020; Nasution, Kamil, & Muda, 2021) on how AIS's introduction and implementation influence firms' overall performance. A few studies have highlighted that AIS will lead to job growth (Huerta & Jensen, 2017), higher average returns (Grande et al., 2011), more significant adaptation to changing environments (Hla & Teru, 2015), as well as a high degree of competitiveness and more outstanding outcomes (Prasad & Green, 2015). In contrast, some scholars argue that AIS utilization has no competitive benefits for achieving better outcomes (Grande et al., 2011). This suggestion is because businesses that invest in AIS do not consistently achieve their performance targets. Furthermore, Ogah's (2013) findings revealed that high performance and profitability levels are not subject to AIS and accounting information. In contrast, (

AIS and employees' performance
Previous studies (Fitriati, Tubastuvi, & Anggoro, 2020; Chipwere, Yushang, Chitesah, & Dasilveira, 2020) present conflicting findings on the impact of AIS on employees' performance. Hence, Fitrios (2016) found that the proper implementation of AIS and preparing the employees for its use directly affect the quality of the accounting information, top management commitment, and AIS effectiveness. Moreover, AIS improves professionals' performance, enhances their productivity, and helps employees gather high-quality information and improve their decision-making (Saganuwan, Ismail, & Ahmad, 2015). In addition, AIS helps users gain confidence in their work, hence reducing task errors (Medina, Jiménez, Mora, & Ábrego, 2014).
In general, the use of technology makes everyone's life more comfortable. All organizations are highly dependent on different systems, including AIS, to complete various tasks and operations (Mandala & Astika, 2019). AIS users, including accountants, managers, and auditors (external and internal), tend to feel more satisfied and pleased with their work quality depending on the application system's quality (Mandala & Astika, 2019). Therefore, the higher the satisfaction level of employees using AIS, the higher the employees' performance, which directly affects the firms' overall performance and increases efficiency and effectiveness (Fatima et al., 2021;Sariwulan, 2020). However, AIS is a vital tool that all organizations should utilize to improve and enhance employees' performance (Hla & Teru, 2015). Additionally, accounting systems help accountants and users rapidly process a large amount of financial data through the accounting system that includes AIS (Hla & Teru, 2015). It also enhances the users' performance and the reliability and validity of accounting information (Nasution et al., 2021).
On the other hand, some scholars find no direct impact of AIS on performance indicators (Medina et al., 2014). This finding mainly occurs when employees or users are not provided with sufficient training programs before implementing any AIS or when the system is low in quality and performs poorly (Grande et al., 2011). Besides, Saganuwan et al. (2015) stated that introducing a new technology or system could lead to technostress. This suggestion is defined as the anxiety and tension that employees feel when new technology is introduced in the workplace (ibid). When organizations introduce new technology, the employees might start behaving negatively and show resistance; but eventually, they will be motivated to adapt to the new change (ibid).

AIS and auditing process
The use of AIS among contemporary organizations is increasing due to the various benefits associated with its use (Hla & Teru, 2015). The auditing process can be defined as all those steps undertaken by an auditor to ensure an independent examination of an entity's operations and financial statements, whereby this is to ascertain whether they reflect an accurate and fair view (Alles, Brennan, Kogan, & Vasarhelyi, 2018). Considering the growing complexity of modern-day firms, AIS significantly impacts the auditing process (Geerts, 2011). Large firms' enormous data pose a challenge to the auditing process, affecting the completion time and the quality of audit outcomes (Alles et al., 2018; Moffitt, Rozario, & Vasarhelyi, 2018). Therefore, the utilization of AIS will enhance the auditing process. This is because it makes it possible for auditors to easily follow every transaction trail without going through voluminous manual records, thereby saving time (Soudani, 2012). The use of AIS has made it possible for independent audit firms to automate their auditing processes (Moffitt et al., 2018). However, some studies stated that there is an indirect impact of AIS on the auditing process. Kamil and Nashat (2017) noted that information technology indirectly affects the auditing profession regarding methods, processes, and mechanisms. Furthermore, Geerts's (2011) findings indicate that the use of AIS by firms plays a crucial role in helping independent audit firms shift from manual to computerized auditing processes, which has helped to hasten the auditing process and enhance audit outcomes. However, Alles et al. (2018) noted that the AIS use could only help the auditing process if the management does not compromise it. Thus, before auditors rely on the AIS information, an audit of the system is necessary (Geerts, 2011).

METHODOLOGY
This paper follows the qualitative approach, which is usually exploratory in nature. This approach helps to reveal in-depth respondents' opinions and behavior and make subjective explanations about what is happing in reality. The sampling of this paper was attained through firms' auditors in the UAE. Thus, for this paper, purposive sampling was used to achieve the research purpose. The online semi-structured interviews were conducted with 10 highly experienced respondents with backgrounds in audit, accounting, and information technology through the Zoom software application during October and November 2020. In qualitative research, an interview is a vital tool that determines how each individual thinks of themselves and their worlds. The aim of conducting the interviews was to discover new visions and understandings about the respondents. Therefore, the interviews were recorded with the verbal consent of each respondent and were manually transcribed.
The thematic analytical procedure illustrious (Denscombe, 2008) was used to analyze the data collected from qualitative research. Turner (2010) acknowledged that there are various methods for evaluating qualitative data, including categorizing and coding data into units of analysis and classification of themes and relationships. Thus, the collected data from interviews were recorded, transcribed, coded, and arranged into different themes for analysis ( Table 2). The respondents' responses and reactions generated from the interviews are linked to the research objective of the study. The themes were made based on the research purpose, which is the role of AIS in firms' and employees' performance and the external auditing process. The key theme is that the role of AIS in enhancing firms' performance is divided into two themes: employees' performance and the external auditing process, in which each of the themes was further subdivided into sub-themes (Figure 1).

FINDINGS AND DISCUSSION
The researchers aim to determine the role of AIS in firms' performance, employees' performance, and the external auditing process during the COVID-19 pandemic. Therefore, the findings and discussions are given below.

AIS and employees' efficiency
The findings indicate that almost all respondents agreed AIS increases employees' efficiency during the COVID-19 pandemic. AIS saves them time and effort in completing tasks compared to doing so manually, especially with the current COVID-19 pandemic and restrictions. One of the interviewees (No. 10) mentioned, "It is almost impossible for employees to get the job done without using accounting information system as they are working from home and this is their only available platform. AIS helps employees get more job done in less time, of course; that is due to the integrated models that ease up the process of doing many time-consuming works". Additionally, interviewee No. 4 said, "AIS increases employees' efficiency as it helps them to do more than one task at once because having integrated modules lower the time needed compared to doing the work manually". This finding is consistent with previous studies such as Medina et al. (2014).

AIS and selection phase
The empirical findings showed that most interviewees agreed that AIS supports the selection phase of the external auditing process during the COVID-19 pandemic. For example, interviewee No. 3 stated, "AIS would make the selection phase very smooth and easy for us as auditors to select samples". Furthermore, interviewees highlighted that AIS would help identify the risky areas for an external auditor. As interviewee No. 1 clearly stated, "For the selection, the phase will for sure be easier, more representative sampling could be chosen while you take into consideration many risk factors in choosing your samples". This finding is consistent with previous studies such as Soudani (2012).

AIS and planning phase
The majority of interviewees documented that AIS enhances the process-planning phase of the external audit during the COVID-19 pandemic. They highlighted that using AIS would make it easier for auditors to get all the system's relevant information. For example, interviewee No. 6 pointed out, "For an accounting information system, it would be easy for the auditors to go straight to the reports they need and schedule their work to review the stuff in the system". That is, the validity of data will be increased, as interviewee No. 6 added, "Validity and consistency of the data will be higher, the completeness of the data will be higher, and the existence of the data will be higher". This finding is consistent with previous literature such as Geerts (2011

AIS and reporting phase
The analysis findings revealed that most interviewees pointed out that AIS would enhance the reporting phase during the COVID-19 pandemic. For example, interviewee No. 6 mentioned, "It will have a positive effect on the reporting process because I can produce reports using the AIS". Interviewees also pointed out that AIS generates reports and financial statements with no errors and mistakes. For example, interviewee No. 4 stated, "AIS generally helps you in the reporting phase of the external auditing process; because the management and the financial statements are being produced from that accounting information system". Interviewee No. 3 confirmed what interviewee No. 4 had stated by mentioning, "In the reporting phase it would have a positive impact since I can generate reports through the accounting information system". This finding is consistent with previous studies such as Hla and Teru (2015).

AIS and follow-up phase
The empirical findings showed that interviewees agreed AIS supports the follow-up phase of the external auditing process during the COVID-19 pandemic. For example, interviewee No. 9 stated, "If you have an automated system or an accounting Information system, you can do follow-up easily". Analysis of the findings also indicated that AIS saves time during this stage, thereby increasing efficiency. For example, interviewee No. 4 highlighted, "Doing it manually will take much time. Accounting information system has a positive impact on the firm and employee performance, and the auditing process". This finding is consistent with previous studies such as Alles et al. (2018). Overall, the findings of this paper indicate that AIS has a more significant impact on employees' performance and the auditing process than on firms' performance. Interviewees agreed that AIS directly supports profitability during the COVID-19 pandemic, but AIS has no direct impact on cash flow, revenue and market share. Similarly, they reported that AIS enhances employees' productivity, effectiveness, and efficiency during the pandemic. They highlighted that AIS induces the selection, execution, and reporting phase of the external auditing process. Respondents believed that AIS would improve a firms' overall performance compared to a firm that does not utilize AIS as this is the age of digitalization. For example, interviewee No. 2 said, "A firm that does not make use of AIS is jeopardizing itself in terms of risks and controls".
Consequently, accounting information systems are one of a business's valued assets. A sound accounting information system will lead to efficiency, competency, and improved customer service. It will also facilitate the decision-making process for the organization. However, it is also essential that the company's administrators continuously support its accounting information systems utilization. Similarly, the investors/ stakeholders could use the accounting information system in dealing with their accounts more effectively, rapidly, and suitably (Fatima et al., 2021). Hence, the accounting information system is also considered a device used by the management that provides accurate facts and figures of the company's accounts and helps the management make prompt and correct decisions.

CONCLUSION
This paper investigated the role of AIS in firms' performance, employees' performance, and the external auditing process during the critical COVID-19 pandemic. The interviews conducted with auditors have given the study a clear picture of the role of AIS. The empirical findings revealed that there is a direct impact of AIS on the overall firms' profitability during the COVID-19 pandemic. AIS would lead to substantial cost savings, helps make the process more comfortable and efficient, reduce human errors. In contrast, the findings showed that there is no direct impact on firms' overall cash flow/revenues during the COVID-19 pandemic. Cash flow depends on other factors such as the firms' operations, nature of the business, and external factors such as the global business environment. While the revenues depend on the firms' overall market share. In addition, the findings showed that AIS induced employees' productivity, quality of work, and efficiency during the COVID-19 pandemic. AIS allowed employees to increase their productivity, especially with the pandemic social distancing. Other findings showed that AIS enhanced employees' effectiveness. Furthermore, the empirical findings highlighted that AIS supports and enhances the external auditing process including selection, planning, execution, reporting, and follow-up phases during the COVID-19 pandemic.
Limitations of this research include the small sample size due to constraints on access to interviewees and limited time and resources. Therefore, a longitudinal study and larger sample size are recommended for future studies, as the former is capable of studying change and development while the latter increases accuracy and the extent of possible generalization. To enhance the role of AIS further, this paper encourages future research to explore the role of AIS in other developed and developing countries. Moreover, other approaches such as mixed methods could be used to explore more on the role of AIS and its related opportunities and challenges to business firms.  Prasad and Green (2015) Findings reveal a positive relationship between AIS and firm performance. Ogah (2013) Results show a negative relationship between AIS and performance and profitability.

Hla and Teru (2015)
They found a positive relationship between AIS and firm performance across countries.
The use of AIS makes it possible to automate business operations including the audit function.

Soudani (2012)
They found AIS has a significant effect on firm performance.
AIS simplifies the accounting process and thus the auditing process.
Geerts (2011) AIS is useful and positively impacts the accounting and auditing processes. The positive impact of AIS on employee productivity.