Financial reporting quality and outsourcing of accounting function: evidence from small private security firms in Zimbabwe

Author

Mkambi, Blessed

Title

Financial reporting quality and outsourcing of accounting function: evidence from small private security firms in Zimbabwe

Abstract

The study sought to analyze financial reporting quality and outsourcing of accounting function: Evidence from small private security firms in Zimbabwe. The study analyzed the effect of outsourcing towards quality financial accounting function. 3 theories were applied including; Transactions Cost Economies, The Resource Based View and the contracting organization theory. A quantitative research approach was used with along with the case study research design. The study applied descriptive statistics, with an 82% response rate amounting to 45 participants, the researcher discovered that the impact of outsourcing on quality financial reporting for small private security firms in Zimbabwe was found to be positive in terms of minimizing risk, lowering costs, improving operations, and compliance. However, there were also challenges identified, such as the potential for outsourcing to be expensive, risky, lead to loss of control, and failure to meet standards. The study recommends that private security companies should ensure that the provider has robust security measures in place to protect sensitive financial information from unauthorized access or data breaches

Date

June 2024

Publisher

BUSE

Keywords

Financial reporting quality

Outsourcing

Private security firms

Accounting function

Supervisor

Mr Manyani