Safeguarding Financial Integrity: The Nexus of Cloud Accounting Systems and Financial Reporting of Nigerian Listed Deposit Money Banks
Year: 2025
Type: article
Abstract: This study explored how cloud accounting affects the quality of financial reports in Nigeria's banking industry. It examined if factors like data security, efficient resource use, and compliance adherence, linked to cloud accounting, influence the clarity, accuracy, and timeliness of these reports. Data analysis was conducted using statistical methods. The study population comprised 24 listed deposit money banks in Nigeria. A purposive sample of eight banks with international authorization licenses was selected. To enhance representativeness, the sample was further expanded to include 384 respondents from the selected banks' headquarters in Lagos, employing the Cochran sample size determination formula. The results showed that compliance assurance features in cloud accounting explain 47.0% of the variability in financial transparency, as indicated by an adjusted R-square of 0.470. ANOVA results indicate significant relationships between cloud accounting proxies and financial reporting quality dimensions. Data Security and Privacy positively predict Accuracy (F(2,353)=31.174, p<0.001). Resource Utilization Efficiency significantly predicts Efficiency (F(1,354)=91.790, p<0.001). Compliance Assurance strongly predicts Transparency (F(1,356)=74.163, p<0.001). These findings suggest that compliance assurance features within cloud accounting systems are strongly linked to increased transparency in financial reporting. Additionally, data security and privacy measures significantly enhance the accuracy of financial reporting, while resource utilization efficiency within cloud accounting systems improves reporting efficiency. To optimize financial reporting processes, it is recommended to implement robust data security measures, enhance resource utilization efficiency, and integrate strong compliance assurance features within cloud accounting systems.
Authors: Oladejo, Olusola James A., Ochom, Mary Etigale
Institution: Lead City University
Language: English
Topic: Financial Reporting and XBRL
Subfield: Management Information Systems
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W4414581043
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