Developing a Model for Enhancing the Quality of Financial Reporting Based on Cloud Accounting Using the Interpretive Structural Modeling (ISM) Approach
Keywords:
Cloud accounting, quality of financial reporting, financial reportingAbstract
This study was conducted with the aim of developing a model to enhance the quality of financial reporting based on cloud accounting using the Interpretive Structural Modeling (ISM) approach. The research was carried out from the beginning of winter 2023 to the end of autumn 2024 (Gregorian Calendar). The data required for ISM-based modeling were gathered through interviews with 18 accounting experts and senior auditors who held master’s or doctoral degrees in accounting and had at least five years of experience in cloud accounting. In this study, ISM was used to construct a model for improving the quality of financial reporting grounded in cloud accounting. The results of the interpretive structural analysis (ISM), derived through the exploratory model, indicated that the hardware factors of cloud accounting—including process automation, advanced scalability, cloud and virtual network servers, management and support tools, and workstations—along with the software factors of cloud accounting—such as flexibility and continuous improvement, scalability, information security, ease of use, performance and analysis speed, remote data recovery, and automated reporting—contribute to enhancing the quality of financial reporting. This enhancement is achieved through dimensions such as improved transparency, increased accuracy in automated reporting, error reduction, improved calculations, and data protection.
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