MEDIATING ROLE OF CUSTOMIZATION IN THE RELATIONSHIP BETWEENSUNPLUS FINANCIAL CONTROL, FINANCIAL ANALYSIS, AND FINANCIALREPORTING QUALITY

Abstract

The article investigated the Mediating role of the accounting systems (SunPlus) customization in
providing quality financial reports. Accounting systems have been developed to make expenses
tracking, budgeting and income activities easy. The study aimed to determine how the SunPlus
accounting system’s capabilities of Financial control, Financial analysis as mediated by SunPlus
customization can be used in providing financial reports that are faithful, relevant, understandable,
comparable and timely. A conceptual framework was constructed to support the proposed
relations. The study was based on Agency theory, system theory and resource dependency theory.
A research hypothesis was examined using 18 institutions within Seventh day Adventist
Organization and Institutions within West Kenya Union Conference. This paper used descriptive
research design and correlation analysis. A random selection of 70 respondents from a target
population of 84 accountants were selected for this study and data analysed using partial least
squares structural equation modelling (Smart PLS 4). The data used was derived from a study
conducted by Boit (2021). The findings revealed a positive and significant relationship between
SunPlus financial analysis and quality of financial reports (P value=0.00< 0.05). Subsequently,
there was a positive and significant association between the SunPlus customization and quality of
financial reports (P value=0.00< 0.05). However, there was no significant relationship between
SunPlus financial control and customization (P value=0.2> 0.05). The findings indicated that
SunPlus customization mediates the relationship between SunPlus Financial Analysis and
Financial Reporting Quality while SunPlus customization does not mediate the relationship
between SunPlus financial control and Financial Reporting Quality. Further, the study's findings
imply that financial control has a positive and significant impact on financial reporting,
contributing 13.8%, with a p-value of 0.047. Additionally, financial analysis plays an even more
substantial role, contributing 58.1% to financial reporting, with a highly significant p-value of
0.000. Since both p-values are below 0.05, the null hypothesis is rejected, supporting the
alternative hypothesis that financial control and analysis positively influence financial reporting.