MINISTRY OF EDUCATION AND TRAINING VIETNAM UNIVERSITY OF COMMERCE - TRAN THI KIM PHU IMPROVEMENT OF ACCOUNTING INFORMATION SYSTEMS OPERATED BY CONSTRUCTION JOINT STOCK COMPANIES IN VIETNAM Major: Accounting No.: 62.34.03.01 Abstract of PhD thesis in Economics Hanoi, 2019 This thesis has been completed at Vietnam University of Commerce Supervisors: Assoc Prof PhD TRAN THI HONG MAI Assoc Prof PhD PHAN DUC HIEU First member of Thesis Committee: ………………………………………………… Second member of Thesis Committee: ………………………………………………… Third member of Thesis Committee: ………………………………………………… Thesis defense will be taken place in Thesis Committee Meeting at……… ………………….………… At…… hour… …on…… … .… …… Thesis can be found at: National Library of Vietnam Library of Vietnam University of College INTRODUCTION Essential of thesis Nowadays, construction join stock companies in Vietnam search their new works through tendering methods It is shown that the competitiveness in construction is very drastic under criteria, such as competitive price, financial ability, etc Each of construction joint stock companies is required to positively apply applicable management tools in order to improve their competitiveness, in which accounting information system plays one of the significant factors A good accounting information system is a key for planning a strategy for management and improving operation efficiency of the companies (Chang, 2001) Each of construction join stock companies should establish an accounting information system applicable to characteristics and demand of economic management Research findings of accounting information system in line of business and type of business in Vietnam have shown that the accounting information systems operated by construction joint stock companies are improving in a better way Such systems not only operate in financial accounting, but also in management accounting; Application of Information Technology in accounting may help provide a timely accounting information However, the drawbacks of accounting information systems operated by some of construction joint stock companies in Vietnam have been found which constrain the competitiveness and operation efficiency of the companies; on the other hand, not many of research papers of accounting information system has been performed as improvement of some accounting information system has been performed by the companies listed on Vietnam securities market Therefore, the implementation of a research paper of actual state of accounting information systems operated by the construction joint stock companies in Vietnam is essential to find out drawbacks and suggest some of improvement solutions Due to such reasons, the author of thesis has selected “Improvement of accounting information systems operated by construction joint stock companies in Vietnam” Overview of research into accounting information systems 2.1 Research into accounting information systems: In recent years, a direct research into Accounting Information System has been implemented and is known with the following four ways of approach: Approach of accounting information system by accounting practices: This approach is popular and is used by many researchers for their theory specified in accounting textbook in computers, such as accounting textbook written by Tran Song Minh (2012), etc Besides, there is an experimental research performed by Nguyen Thanh Quy in 2004 It is a tradition way of approach that the companies can apply to management of input and output based on accounting entities The approach of accounting information system by accounting practices has found its largest drawback, in which it causes a division in works of accounting; such approach does not follow the “information system” Therefore, it cannot find the connection between accounting practices in an accounting information system Approach of accounting information system by cycle: Some of the authors, such as Nguyen The Hung (2006), Nguyen Manh Toan with his coworkers (2011), Hall, J.A., & Bennett, P.E, 2011, etc have published their research papers of accounting information system in textbooks Or experimental research by Huynh Thi Hong Hanh (2014) Such research papers have pointed out the targets of each cycle, and emphasize the efficiency of accounting information system made by divisions and personnel in a business cycle; the efficiency of data collection and information exchange between the accounting and other divisions, helping to create a platform for ERP application in the companies However, such research papers have failed to emphasize the efficiency of data processing Approach of accounting information system by progress of information system: The approach of accounting information system by progress of Information System has many research papers by the authors such as Nguyen Manh Toan with his coworkers (2011), Hall, J.A., & Bennett, P.E (2011), etc Additionally, there are some authors, such as Hoang Van Ninh (2010), Nguyen Thi Thu Thuy (2017), whose experimental research papers have contributed to such approach Those research papers have elucidated the data processing of an accounting information system, from input, data processing, to output to provide information to the users However, a completed accounting information system is comprised of multiple factors, so that the approach of accounting information system by progress of Information System will not provide a full detail Approach of Accounting Information System by factors that constitute such systems This approach has been studied by the authors, such as Azhar Susanto (2008), Thai Phuc Huy with coworkers (2012), Le Thi Hong (2016), etc Each of research papers has expressed its viewpoint about factors that constitute other types of accounting information system Such approach is considered to be more comprehensive than the above-mentioned ways of approach 2.2 Rating of accounting information system in respect to efficiency Rating of accounting information system in respect to efficiency may be classified into the following two popular models: Model of rating of accounting information systems in respect to efficiency by direct method, which was published by Yuvaraj & Kibert (2013), H Sajady, Ph.D with coworkers (2008), Le Ngoc My Hang with coworkers (2012), helps to prepare efficient and direct measures applied to accounting information systems without means of other factors Model of rating of accounting information systems in respect to efficiency by indirect method will not provide a direct rating of accounting information systems in respect to efficiency, but use of means of other factors At the moment, the model of rating of accounting information systems in respect to efficiency by reviewing level of satisfaction of users is more popular This model was researched by many researchers, such as DeLone and McLean (1992), Kim (1989), years ago in the world In the next years, the famous research papers of rating of accounting information systems in respect to efficiency by reviewing level of satisfaction of users, which may be used by prospective researchers, was carried out by DeLone, W.H., & E.R McLean (2003) 2.3 Comments on overview of research work regarding name of thesis and finding research problem In research into Accounting Information System, the thesis has evaluated research methodology of each way of approach through research overview of accounting information systems The approach of rating of accounting information systems by factors, which constitute the accounting information systems, has shown full detail of accounting information systems and is applicable to model of rating of accounting information systems in respect to efficiency at the moment Therefore, the author of thesis has applied such approach to use as a research methodology in the thesis However, in order to establish a theory basis for purpose of research into actual state of accounting information systems with solutions, the author of thesis has not only collected the consequent from approach of rating of accounting information systems by factors that constitute the accounting information systems, but also selected the consequent collected from the above-mentioned three ways of approach In research into rating of accounting information systems in respect to efficiency, in improvement of the approach of rating of Accounting Information System in respect to efficiency by direct method, the rating has just been performed based on benefits of accounting information systems The approach of rating of accounting information systems by reviewing level of satisfaction of the users provides a comprehensive view and rating on quality of factors contributed to accounting information systems in Information Technology application platform Many of published research papers have not performed rating of accounting information systems, which are operated by the construction joint stock companies, by level of satisfaction of the users, so that their solutions are still unilateral From the above comments, the thesis has found out the following problems: - Elucidate and supplement additionally theoretical problems regarding accounting information systems operated by the construction joint stock companies, in which the approach of rating of such systems by factors that constitute the systems should include the consequent of the published research papers - Evaluate the efficiency of accounting information systems operated by the construction joint stock companies in Vietnam by reviewing level of satisfaction of the users working for the companies - Study and suggest the solutions that help improve accounting information systems operated by the construction joint stock companies, which apply Information Technology to establishing internal information system in direction of integrating financial accounting and management accounting Research targets General target: Complete improvement of accounting information systems operated by construction joint stock companies in Vietnam Typical research target: Define theoretical model of accounting information systems; Study and evaluate actual state of accounting information systems; Suggest solutions that help improve accounting information systems operated by construction joint stock companies in Vietnam Research questions: - What detail does research into accounting information systems operated by construction joint stock companies perform? - What is the actual state of accounting information systems operated by construction joint stock companies in Vietnam? - What are solutions can be suggest to help improve accounting information systems operated by construction joint stock companies in Vietnam? Objects and scope of research - Objects: Study accounting information systems operated by construction joint stock companies in Vietnam; Evaluate accounting information systems by level of satisfaction of the users working for the construction joint stock companies in Vietnam - Scope: Perform study and survey into managers, leadership, and heads of division or Accounting in construction joint stock companies in Central Highlands of Vietnam which are the primary target of survey Period: from 2015 to 2017 Research process: Research process of the thesis is classified into steps: Scientific and real significance of thesis Theory: This thesis has supplemented and elucidated theoretically accounting information systems operated by construction joint stock companies within five matters; it has summarized and established model of rating of accounting information systems in respect to efficiency by reviewing level of satisfaction of the users Real significance: The thesis has evaluated actual state of accounting information systems within five viewpoints; in which it has reviewed level of satisfaction of the users within five factors; and suggested solutions that help improve accounting information systems operated by construction joint stock companies in Vietnam Outline of thesis: This thesis is structured into chapters CHAPTER THEORETICAL BASIS OF ACCOUNTING INFORMATION SYSTEMS OPERATED BY CONSTRUCTION JOINT STOCK COMPANIES 1.1 Theoretical basis 1.1.1 Accounting information system At the moment, some of the different viewpoints over accounting information systems has been expressed by, such as Azhar Susanto (2008), in which it has expressed that an accounting information system is built from material and non-material used to process transactions related to financial position of a company One viewpoint has expressed that an accounting information system is an organized system that its function is to collect, classify, process and analyze status information, and provide the users in or out of a company with such information in order to take a decision in respect to economy (Moscove, 1997) A viewpoint by Romney and Steinbart (2006) also expressed that an accounting information system functioned in collection, data recording and processing in order to provide the users, who desired to make a decision in respect to economy, with relevant information Viewpoint by the author of thesis: “Accounting information system is a combination of different components which function in collection, storage, processing of data under the typical orders so as to provide the users in and out of a company with information in respect to finance and non-finance 1.1.2 Theory of asymmetric information: The asymmetric information is caused by difference in level and detail of information, and differential purposes from leadership of a company to an investor (Nguyen Cong Phuong with coworkers, 2012) An investor needs providing not only information of a financial statement, but also information of a management accounting This theory should be applied in order to establish an efficient accounting information system and provide the users with useful information 1.1.3 Theory of dynamic capabilities: This theory has been applied by many authors in their research papers in improvement of competitiveness of a company In application of such theory, the author of thesis has identified Information Technology systems, economic employees, quality of service, and administrators’ awareness of usefulness of an accounting information system and rating of an account information system in respect to efficiency by reviewing level of satisfaction of the users 1.2 Characteristics of accounting information systems operated by construction joint stock companies 1.2.1 Characteristics of a construction joint stock company which shape accounting information There are three characteristics which shape an accounting information system, including manufacturing engineering, constructional products and expenditure management Such characteristics create effect to the following matters of an accounting information system: Prepare projected cost of production on each construction or work item; collect information regarding expenditure and calculate price of a basic constructional product 1.2.2 Role of accounting information systems operated by construction joint stock companies The accounting information systems play a drastically significant role in contribution to business operation efficiency of a company as it may provide the administrators and those, who desire to make decisions in respect to economy, with useful and timely information Such drastically significant role of providing information to the users, who is not only in construction joint stock companies (management accounting), but also out of the companies (financial accounting) The combination of an accounting information system and other information systems will establish a big database in respect to quantity, processing speed and types of information, which plays an important role in construction joint stock companies, units and personnel in and out of the companies 1.2.3 Demand in providing accounting information and factors that constitute an accounting information system in construction joint stock company There are two types of users of an accounting information system, including those who is in or out of a construction joint stock company Due to differential purposes of the users, the accounting information providing to the users may not be totally the same However, a completed accounting information system that may act as an accounting information provider to all of the users consists of five factors: (1) Input data, (2) Data processing, (3) Output data, (4) Control of accounting information system, (5) Storage of accounting information and data 1.2.4 Requirements of an accounting information system in construction joint stock company - Output data: Meet the requirements in regard to accounting information quality and matters In which, a qualified information should maintain its accuracy, time, recapitulation, appropriateness and completion - Resources participating in an accounting information system: ensure installation, technical devices and personnel 1.3 Matters of accounting information systems operated by construction joint stock companies 1.3.1 Input data - Content of input data that needs collecting relies on types of information required by the users (Nguyen Bich Lien and coworkers, 2016) However, in summary, types of accounting data include older data and forecast regarding economic entities in a company - Methods and tools for input data collection: The companies may apply different methods, including word of mouth, remembering or using accounting records and other types of documents - Accounting division and other functional divisions may participate in collection of accounting data - There are two popular methods of collecting input data, including the use of accounting software dependent from other software used by different functional divisions, or the accounting software integrated into management software used by other divisions 1.3.2 Accounting data processing in construction joint stock data The personnel participating in accounting data processing are specified by accounting division, tasks and assignments for each accountant Methods and accounting data processing are supported by independent or integrated accounting software Popular tools: Encryption methods, accounting policies, accounting account, and promotion methods for managing accounting information system The ultimate goal is to obtain information on financial accounting and management accounting There is a difference in such types of information, so that a certain difference in application of tools may be discovered 1.3.3 Provide accounting information Accounting report can provide the users in or out of company with accounting information Depend on different purposes of the users, the content, time and methods of accounting report may be different Including: - Provide accounting information to external units via financial statements; prepare and form financial statements in accordance with regulations of the Government - Provide the internal users with accounting information via management accounting; preparation and form of management accounting report should abide by administration requirements of the company other than regulations of the Government 1.3.4 Control of accounting information system The control of accounting information system plays an importance role in contributing to efficiency of accounting information system However, this thesis will only mention control of applications in an accounting information system Including: Control of output data; Control of data analysis and processing, and output data 1.3.5 Storage of accounting information and data Storage of accounting information and data includes: (1) Accounting information and data classification and sorting; (2) Place of storage; (3) Time of storage; (4) Security; (5) Personnel responsible for storage of accounting information and data 1.4 Model of rating of accounting information systems in respect to efficiency by reviewing level of satisfaction of users 1.4.1 Viewpoint of rating Accounting Information System in respect to efficiency The efficiency of an accounting information system is interpreted in way of achieving certain goals The interpretation of such efficiency has been expressed under viewpoints, such as: It is considered as efficiency of accounting information system if such system can provide accounting information which can meet demand of the users (Kim, 1989; Nicolaou, 2000; H Sajady and coworkers, 2008), or meet satisfaction of the users (Bailey and coworkers, 1983; William DeLone and coworkers; Huynh Thi Hong Hanh, 2013; Nguyen Tran Ngoc Dieu, 2017) Or the approach by reviewing level of satisfaction of the users in a way more popular and closer to the matters of accounting information system Therefore, this thesis has selected research methodology in rating of accounting information systems in respect to efficiency by reviewing level of satisfaction of the users 1.4.2 Theory of research in to model of rating of accounting information in respect to efficiency by reviewing level of satisfaction of the users This thesis has collected research findings and performed analysis on study model by DeLone, W.H & E.R McLean (1992, 2003) and other study model by Nguyen Tran Ngoc Dieu (2017) In which, a study model by DeLone, W.H., & E.R McLean (1992, 2003), which has been selected by many other authors for their experimental research papers, consists of five factors: (1) Quality of accounting information; (2) Quality of accounting information system; (3) Quality of service; (4) Satisfaction of system utilization; (5) Awareness of helpfulness in accounting information system However, the fourth factor of author DeLone, W.H.& E.R McLean has not been used in this thesis Moreover, this thesis has applied additional factor “Qualities of accountants” in research paper of author Nguyen Tran Ngoc Dieu (2017) 1.4.3 Viewpoint on approach and assumption H1: Quality of accounting information has a reversible relationship with level of satisfaction of the users H2: Quality of accounting information system has a reversible relationship with level of satisfaction of the users H3: Qualities of accountants has a reversible relationship with level of satisfaction of the users H4: Awareness of helpfulness in accounting information system has a reversible relationship with level of satisfaction of the users H5: Quality of service has a reversible relationship with level of satisfaction of the users Chart 1.14 Research model In order to show the relationship between satisfaction of the users and the aforementioned factors, this thesis has suggested the estimated recursive equation 11 CHAPTER ACTUAL STATE OF ACCOUNTING INFORMATION SYSTEMS OPERATED BY CONSTRUCTION JOINT STOCK COMPANIES IN VIETNAM 3.1 Overview of construction joint stock companies in Vietnam 3.1.1 Basic review of construction joint stock companies in Vietnam In recent years, the development of building in Vietnam has been rapid in respect to quality and quantity of construction joint stock companies Therefore, the market share of building has been expanded over the time, especially in 2016, when the statistics in building have increased in comparison with previous years The construction joint stock companies operate in three fields, including: House building, civil construction engineering and specialized building In 2016, the construction joint stock companies operating in house building made up a highest proportion 3.1.2 Characteristics of management and organization of business operation in construction joint stock companies in Vietnam Organization and management: Building operation of the companies spreads over the local in respect to geography, so that the management and organization of construction joint stock companies should be flexible, and stick close to construction sites where their workers are implementing their duty The organization of construction joint stock companies is divided into three levels, including company - factory - teams, or two levels, including company - teams or factory Business operation: Through survey with 90 construction joint stock companies, there are 100% companies which operate in both building construction and paying flat rate of construction/work items to the relevant units And there are 90 of 90 construction joint stock companies which operate by three types of paying flat rate (such as lump-sum pay, expenses pay, joint expenses pay) 3.1.3 Characteristics of organization and management of accounting activites in construction joint stock companies in Vietnam In survey regarding organization and management of accounting activities of 90 construction joint stock companies, it is shown that 29 of 90 companies (a ratio of 32.2%) which organize and manage accounting activities under both concentration model and decentralized model There are 61 of 90 companies (a ratio of 67.8%) which organize and manage accounting activities under concentration model In applied accounting policies (Chart 3.4) 3.2 Research findings of actual state of accounting information systems operated by construction joint stock companies in Vietnam 3.2.1 Actual state of accounting information systems operated by construction joint stock companies in Vietnam In finding out users’ demand for accounting information, this thesis has just found out actual demand for accounting information required by 12 management levels in 90 construction joint stock companies Through survey with 210 top men and heads of departments and divisions in 90 construction joint stock companies, it is shown that there are 206 qualified questionnaires (a ratio of 98%) which express that the accounting information is essential to four functions of management Chart 3.4 Accounting policies executed by the construction joint stock companies in Vietnam Input data collection - Content of input data: Through survey, there are 100% (90 of 90) construction joint stock companies saying that they collected forecast data, older data, but they have not built an index data regarding some certain accounting activities - Methods and tools for input data collection: There are 100% (90 of 90) construction joint stock companies saying that they have used accounting records and management records The management records have not been highly appreciated by some of construction joint stock companies - Personnel participating in input data collection: Through survey, there are 100% accountants in construction joint stock companies saying that they collected accounting data by accounting activities related to functional divisions in their company The accountants are responsible for implementing collection, creating and approve of accounting records related to accounting activities of the companies However, such activity has not been highly appreciated The competitive tendering acting is being given the most attraction by construction joint stock companies, making up proportions of 75.6%, 53.3% and 51.1% respectively Some of construction activities, such as completion of works, funding and workforce management, are not put in consideration Not much of attraction is given to materials and machinery transport by some of construction joint stock companies - Methods of input data collection: 100% accounting records arising from or out of the companies have been approved in written without using ERP software Most of accounting records arising from the companies are made by 13 accounting software, Excel or other relevant software, some of which are printed in forms Accounting data processing performed by construction joint stock companies in Vietnam - Goals of accounting data processing: Perform accounting data processing in order to provide the users out of company with accounting information: The construction joint stock companies can make a good classification on accounting information to provide the users out of the companies, and perform accounting data processing, and implement book keeping operation, announcing accounting information, tax return and payment, etc Perform accounting data processing in order to provide the leadership with accounting information: it is intended to take decisions on bid price, selection of subcontractors, etc in respect to all levels of management Some of the construction joint stock companies may not be too obligated to abide by regulations of the Government but regulations on business finance and the administrators’ demand on accounting information - Through survey on personnel participating in accounting data processing in the construction joint stock companies, the accounting data processing is performed by accountants in Accounting department, Planning department, Engineering department, and technicians from the relevant units With regard to construction/work items that have been deployed by subordinate units, there are 100% (90 of 90) construction joint stock companies have make clear about accounting activities of the senior units and subordinate units Tasks and assignments regarding accounting activities have been assigned to the accountants by chief accountant However, there is a large proportion about construction joint stock companies which have not performed strict analysis and check of any arising accounting tasks and assignments in order to assign the accountants for solutions - In accounting data processing: There are 100% construction joint stock companies that use accounting software independent from other departments and divisions and other subordinate units, in which 53 of 90 (58.9%) construction joint stock companies have purchased programmed accounting software; 37 of 90 (41.1%) construction joint stock companies have hired developer to develop an accounting software for their purpose; and no company can develop an accounting software on their own Some of the companies believed that such accounting software might not provide functions required by the administrators Tools for accounting data processing: Some of the construction have applied methods of encryption, measure, account and forms of operation to build accounting information system Methods of encryption of accounting objects Each of the construction joint stock companies may apply different methods of encryption, such as encryption of sequence of code by space, encryption of descriptor code and hierarchical code The coder used to manage 14 accounting objects in the accounting software is dependent from accounting software of other departments and divisions Tools for accounting data processing in financial accounting Methods of measure: One of the methods to be put in great consideration is costing of construction/work items There are 100% (90 of 90) construction joint stock companies which have sorted expenses by operational functions At the end of accounting period, distributed expenses may be made under different criteria There are 35 of 90 (38.9%) companies which relied on revenue, 35 of 90 companies (35.6%) which relied on expenses of direct raw material, and 23 of 90 companies (25.5%) which relied on distribution rate Particularly, distributed expenses of machinery in construction/work items may be made based on actual shifts at the end of a month There are 100% construction joint stock companies which did not make distributed expenses on credit interest, bonds for each construction/work item Some of the companies has not paid much attention to provisions and temporary credit spread at the date of financial statement Account and account books Most of account list types, which were designed by the developers, are mostly ledger account However, a ledger account may not have enough capability in accounting data processing for a financial statement, so that a secondary account or third-level account is necessary Detailed account books and general books in financial accounting may be designed by the developer or accountants under the forms, which were promulgated by the Ministry of Finance, without amendment or modification Tools for accounting data processing in management accounting Accounting data processing for purpose of planning Define expense standards: There are 100% construction joint stock companies which have defined their expense standards for direct raw material, direct labor and utilization of machinery; such standards have complied with regulations of the Government and entities view of the companies On the other hand, there are some certain expenses not defined by some of the companies There are 100% construction joint stock companies which have not defined internal expenses Define budget standards: Estimate of expenditure is set up to define bid price and production planning made by subordinate units To define bid price, aside from other expenses, the companies may find out the dutiable income rate and actual process specifications, etc Revenue budget: It may be defined based on production planning, regulations in civil works contracts, work acceptance and managerial effectiveness in current year specified in financial statement At the beginning of a year, the construction joint stock companies may set up planning for business funding Perform older accounting data processing for demand from the administrators: In order to perform accounting data processing for purpose of management, the construction joint stock companies may apply methods of 15 measure, account and detailed account books However, expense classification and costing of construction/work items have just proceeded to accounting data processing in financial accounting But the methods of measure may apply not only in value but also in kind mostly The construction joint stock companies have made opening of account and account books, which are more detailed than those in financial accounting Perform accounting data processing for purpose of control function: However, the control of accounting entities implemented by the construction joint stock companies has just been proceeded to obtained figures in comparison with figures specified in a planning Particularly, the construction joint stock companies have just performed control of amount of raw material, labor and machinery in reality in comparison with those assessed in respect to direct raw material expenses, direct labor and expenses for utilization of machinery Control of raw material in a construction site may only performed at the end of a month Perform accounting data processing for purpose of making decisions in respect to economy: There are 100% owners of the companies saying that the accounting information is only useful in defining bid price, lump-sum payment to the construction teams, factories, or labor with a certain rate, decision on selection of subcontractors or raw material suppliers, etc - In actual state of providing accounting information, there are 100% (90 of 90) construction joint stock companies saying that they have classified accounting information to provide to the certain users But such classification has just been defined by default without official document The construction joint stock companies have classified accounting information to provide to tax authorities, Banks, and for purpose of management and business operation Tools for providing accounting information Provide the users out of a company with accounting information: The construction joint stock companies may provide accounting information not only with tax authorities and banks, but also with the investors The accounting information may be provided via financial statement, policy statement and announcement of exception report The construction joint stock companies may comply with accounting standards and prevailing system of accounts in displaying accounting information in a financial statement Through survey, there are 50% construction joint stock companies which have formed four types of financial statement Content in most of financial statements is complied with regulations of the Government Notes to the financial statement may be more flexible without adding necessary criteria for a financial statement Provide the users in a company with accounting information: The construction joint stock companies have formed reports for providing accounting information for purpose of management The types of report may vary from other companies Control of accounting information system: Through survey, the construction joint stock companies have made a good control on input data 16 before input activity, and data comparison with people concerned, and output data However, some of the companies have not made a good control on modification, adjustment, permission of access, adding and printing reports Storage of accounting data and information: There are 100% (90 of 90) construction joint stock companies saying that they have sorted accounting data and information by date of storage The construction joint stock companies have applied various methods of storage to accounting data and information 3.2.2 Research into efficiency of an accounting information system operated by the construction joint stock companies in Vietnam In survey form, this thesis’ survey has only applied to top men and personnel of 90 construction joint stock companies by giving 210 questionnaires to 90 construction joint stock companies in the Central Highlands, in which 210 questionnaires have been collected with 206 (98.1%) qualified questionnaires Survey findings and comments on rating of level of satisfaction of the users in the construction joint stock companies in Vietnam Survey findings of level of satisfaction of the users: According to the survey findings, the satisfaction of top men, departments and functional divisions over accounting information system is not high, with a scale of 3.11 to 3.39 in average According to investigation findings of research assumptions by applying Cronbach’s Alpha, Exploratory Factor Analysis, Pearson Correlation Analysis and Analysis of Multi-variable Linear Regression, the five assumptions from H1 to H5 that set up for rating of level of satisfaction of the users are totally accepted without being rejected The findings have shown that such five factors, which have created a positive effect on satisfaction of the users, is totally appropriate to theoretical research and research in reality performed by previous authors Therefore, five factors that should be considered during research into completion of accounting information system: Quality of accounting information, awareness of helpfulness of accounting information system, quality of service, quality of system and accountants’ qualities The standardized recursive equation is as follows: US = 0,393*QA + 0,311*PU + 0,123*IQ + 0,111*SQ + 0,012*SVQ 3.3 Rating of actual state of accounting information systems operated by construction joint stock companies in Vietnam 3.3.1 Actual state of accounting information systems operated by construction joint stock companies in Vietnam Based on actual state of accounting information systems operated by construction joint stock companies in Vietnam, the thesis has summarized the following research findings: Content of input data: Most of administrators in the construction joint stock companies have not made a clear definition of accounting information and control of such information, for purpose of making decisions in respect to economy 17 Input data collection: There is a large proportion of the construction joint stock companies which have not formed chart of relationship with functions, process, and description of process in connection with each of business activities There are 100% construction joint stock companies which have not used accounting software integrated into management software, causing delivery of accounting records to be delayed Tools for collection of accounting data have not been rated good Accounting data processing - Targets of accounting data processing: There is a high proportion of accountants in the construction joint stock companies who have not defined target of accounting data processing in connection with some of accounting entities There are 100% construction joint stock companies which have not make an official written targets of accounting data processing - Personnel participating in accounting data processing: Most of the construction joint stock companies have not put permission of adding, viewing, and printing accounting information in consideration Moreover, the interaction between departments and divisions have not been high - In methods of accounting data processing: most of accounting software run by the construction joint stock companies have not met demand from the users - Tools for accounting data processing + The encryption has not applied to accounting entities as most of the companies have not had profound knowledge of what necessity to encryption of such accounting entities is The encryption process has not made a profound study into the essence of accounting entities The build of list of accounting entities to be encrypted has not been created by cooperation of the relevant departments and divisions + Tools for accounting data processing in financial accounting: In methods of measure, most of the construction joint stock companies have put a less consideration on provision Accounting of some expenses have not complied with the regulations The construction joint stock companies have not made some of accounts and account books under criteria of financial statement + Tools for accounting data processing in management accounting Accounting data processing for purpose of planning: The construction joint stock companies have not defined a good standard for production expenses The estimate of expenditure applied to direct raw material, direct labor and utilization of machinery is affected by defined expense standard as it may not follow closely to the reality, causing a decrease in significance of estimate of expenditure Some of the construction joint stock companies have less considered the planning for material reserves; budget for credit interest and administration expenses as such budget has just been estimated in percentage Accounting data processing for purpose of accounting matters: Classification of expenses has just performed through levels of business 18 operation, and distribution of expenses has just implemented in traditional way The build of list of accounts and indexes is heavily relied on style of finance accounting as it has paid less attention to managerial accounting reports The accounting data processing for purpose of control has not been performed strictly The shortcomings in accounting data processing for purpose of making decisions in respect to economy has been found, as it has not suggested solutions for calculation, and recording on reports, and providing a clear interpretation for each solution to help the administrators make decisions in respect to economy Provide accounting information With regard to providing accounting information in financial accounting, accounting information in financial statement has not been flexibly displayed, as one of the contents, which effect how accounting information is displayed in financial statement, is provision The prepaid expenses before distributed expenses have not been considered by the companies In regard to accounting information in management accounting, the quantity of managerial accounting reports has not been sufficient to meet demand from the administrators Using Excel to form an accounting report may lessen the accuracy and date of accounting information; it may also affect accounting information processed by accounting software or Excel or stored in documents that have not been synchronized Control of quality of accounting information system: In regard to control of accounting information system, most of the construction joint stock companies have not integrated such control into purpose of management 3.3.2 Rating of efficiency of an accounting information system operated by the construction joint stock companies in Vietnam First, it may be seen that there are four main reasons that brought about the shortcomings arising from actual state of accounting information systems causing quality of accounting information to be low Second, through model inspection, it may show a clearer view of five factors that make an impact on satisfaction of the users, and show the levels of impact resulted by such factors so as to establish foundation for suggesting solutions that help surmount in order of preference thence improve accounting information systems CONCLUSION OF CHAPTER In this chapter, the thesis has elucidated actual state of accounting information systems operated by the construction joint stock companies in Vietnam by giving five details Simultaneously, it has also studied satisfaction of the users, and found out the factors that make impact on satisfaction of the users in the construction joint stock companies Those shortcomings found out by this thesis is the foundation to suggest solutions that help improve accounting information systems 19 CHAPTER SOLUTIONS TO IMPROVE ACCOUNTING INFORMATION SYSTEMS OPERATED BY CONSTRUCTION JOINT STOCK COMPANIES IN VIETNAM 4.1 Promising development of building in Vietnam The building in Vietnam has been supporting by the Government with Law on Housing (2014), allowing individual and foreign enterprises to take ownership of house in Vietnam This law is a way of creativity in absorbing foreign investment with any foreign investor who is conformable to the general planning for building in Vietnam In 2017, it is intended to continue to absorb Foreign Direct Investment, or FDI, to Information Technology, high-tech industry and auxiliary industry, high-quality services, especially trading, tourism and logistics, etc From there, it may be seen that the development of building in Vietnam will have a bright future 4.2 Request to improve accounting information systems operated by the construction joint stock companies Vietnam The improvement of an accounting information system should follow the following requirements: Apply Informatics Technology to accounting matters; such improvement should be appropriate to the characteristics of business operation in the construction joint stock companies; such improvement should abide by regulations in the law regarding accounting, finance, and other relevant laws, such as Law on Accounting, Accounting Standards, Decrees regarding instruction on how to implement such regulations; maintain to improve accounting information in financial accounting and management accounting; maintain the balance between expenses and benefits and possibility of application 4.3 Solutions that help improve accounting information systems operated by the construction joint stock companies Vietnam The construction joint stock companies should focus on improving the following six details: 4.3.1 Solutions that help meet the requirements of accounting information from the users In this scope, this thesis has just suggested solutions that help to meet requirement of accounting information from the administrators This thesis has suggested that each of administrator should require that accounting information should be provided in full detail for purpose of management of the companies, and accounting information, such as expenses, revenue, debts, etc should be announced to the public via description of demand on accounting information 4.3.2 Solutions for input data collection in the construction joint stock companies in Vietnam In this content, this thesis has focused on improvement of the following three problems: Improvement of how input data is collected 20 Each of the construction joint stock companies should build a management process for each of business operation under flow chart On the basis of management process, every construction joint stock company should build a general table with targets which records details of accounting records and documents from departments and divisions Improvement of accounting data collection: Each of the companies should make purchase of accounting software or management software conformable to their demand in order to make use of such software in maximum under the company’s financial position Improvement of methods and tools for accounting data collection: According to current regulations, the construction joint stock companies are entitled to be flexible on their own in application and definition of accounting records and other types of documents for purpose of accounting data collection However, using accounting records to perform accounting data collection should abide by the following rules: First, using accounting records to perform accounting data collection should comply with regulations of the Law on Accounting regarding form, management and use of accounting records, and business operation characteristics and requirements of management from a company Second, account records are ensured to collect two types of accounting data, including accounting data in financial accounting and accounting data in management accounting; Third, the construction joint stock companies, on their own, should design forms of accounting records corresponding to any detail in account books and reports; Fourth, under application of Information Technology, forms of accounting data, which are designed on a computer for purpose of input data, should consider types of accounting information provided to the users on demand Moreover, the construction joint stock companies should provide additional documents regarding accounting data processing for purposes such as analysis, evaluation and control of expenses, and rating of departments and divisions in respect to efficiency Therefore, in order to maintain a full, precise and conformable accounting data collection, each of the companies should build an index of accounting records which attach to accounting entities, such as cash, material, lump sum, etc 4.3.3 Solutions for input data collection in the construction joint stock companies in Vietnam Completion of accounting data processing: Each of the companies should perform analysis on details regarding accounting entities, general accounting information for purpose of business operation, for the administrators and other external users Targets of accounting information should be implemented in certain steps, which helps find out which demands on accounting information are 21 completed, accurate and conformable Such targets are the foundation of accounting data collection and data processing and design of reports before operating an accounting information system Improvement of personnel participating in accounting data processing: The construction joint stock companies should focus on improvement of the following basic three problems: The chief accountant should set permission for each of accountants who works with the same functions in an accounting software; each of accountant should make a good cooperation with each other; all of the construction joint stock companies should focus on personnel recruitment Improvement of methods of accounting data processing: The huge development of Information Technology has invented new methods of accounting data collection and processing, and new methods of providing accounting information The application of Information Technology to accounting matters is an essential requirement of the age of economic integration Improvement of tools for accounting data processing: In this detail, this thesis has found out three basic factors, including encryption of accounting entities, tools for accounting data processing in financial accounting and in management accounting Regardless of the construction joint stock companies use ERP or independent accounting software in encryption of accounting entities, the synchronized encryption of accounting entities is an essential factor for purposes of accounting matters and inspection, etc This thesis has suggested the steps of an encryption process In regard to tools for accounting data processing in financial accounting, this thesis has suggested solutions that help prepare provisions in compliance with regulations, and apply cost accounting to the right accounting entities, and open accounts and make account books in conformity with the criteria in a financial statement With regard to tools for accounting data processing in management accounting, this thesis has suggested using applicable tools for accounting data processing in two schemes: A large-scale construction joint stock company should apply model of mix accounting organization In which, a company may organize two separated divisions of financial accounting and management accounting If any subordinate units (or factories) has accounting activities, they should follow such model Medium and small construction joint stock companies should organize in a combination of financial accounting and management accounting 4.3.4 Solutions for providing accounting information in the construction joint stock companies in Vietnam In order that the users are met demand on accounting information in respect to suitability, completion, accuracy and time, shortcomings of financial statements and managerial accounting reports should be remedied Any expense 22 should be included in a financial statement by groups of construction joint stock companies by following the Decree no 200/2014/TT-BTC and the Decree no 133/2016/TT-BTC With regard to managerial accounting reports, each of the construction joint stock companies should provide additional types of report conformable to management of the administrators 4.3.5 Solutions for control of accounting information systems operated by the construction joint stock companies in Vietnam In order to ensure the asset protection and accounting information security with accuracy and reliability, it is necessary to set up procedures for totally controlling of operation process of an accounting information system, from input data to data processing, and output data is exported via figure comparison 4.4 Implementation conditions 4.4.1 With regard to the Government, the thesis has suggested that the Government should improve the following four basic problems: The Government should implement strict inspection and control on expenses and quality of construction, from steps of planning for management and exploitation; the Government should improve their legal documents regarding management of investment in construction; the Government should define a more detailed system of legal documents and financial accounting standards in in order to apply to building and erection in conformity with international accounting standards and practice; the Government should orient accounting training programs in a way of not only focusing on financial accounting, but also management accounting 4.4.2 In regard to the construction joint stock companies in Vietnam, through analysis on actual state and rating of efficiency of accounting information systems operated by the construction joint stock companies in Vietnam, each of the companies should concentrate on finding solutions for the problems in order of preference, such as: Improving qualities of accountants; Raising awareness of usefulness of an accounting information system; Improving quality of accounting information system; Improving quality of service CONCLUSION OF CHAPTER From review of promising development of the construction joint stock companies in Vietnam, and rating of actual state of accounting information systems operated by the construction joint stock companies in Vietnam in Chapter 3, this thesis has found out what requirements to be followed in order to improve accounting information systems, and suggested solutions that help improve six matters of accounting information systems Such suggestions of improvement are based on what impacts on level of satisfaction of the users in the construction joint stock companies On the other hand, this thesis has suggested some solutions with the state authorities 23 CONCLUSION The thesis “Improvement of accounting information systems operated by construction joint stock companies in Vietnam” has been made on the basis of theory with reliability, using primary data and sources of data collected by the author of thesis This thesis has applied a combination of qualitative and quantitative research for purpose of data processing With this thesis, the author has collected research findings, shortcomings, and proposed new directions for research work: Research findings First, in an overview, this thesis has performed analysis on what advantage and disadvantage of each of different ways of approach to an accounting information system; this thesis has generalized research papers of rating of efficiency of an accounting information system, and set up viewpoint of rating of rating of efficiency of an accounting information system by reviewing level of satisfaction of the users Second, this thesis has elucidated what essence of an accounting information system is, and found out six factors that constitute an accounting information system; and set up model for research into rating of efficiency of an accounting information system by reviewing level of satisfaction of the users Third, this thesis has performed analysis on what characteristics of a construction joint stock companies impact on an accounting information system, and built a process in researching into actual state of accounting information systems operated by the construction joint stock companies in Vietnam This thesis has also applied relevant methods in order to perform research into actual state of accounting information systems Fourth, this thesis has performed survey, processing and analysis on actual state of six matters in accounting information systems operated by the construction joint stock companies in Vietnam This thesis has also elucidated level of satisfaction of all-level management of a company in respect to not only quality of accounting information but also four factors participating in an accounting information system Fifth, this thesis has found out what achievements and shortcomings existed in accounting information systems on basis of theory, and found out research findings and shortcomings from reviewing level of satisfaction of the users in the construction joint stock companies, and completed six factors that constitute an accounting information system in direction of accounting information integration Shortcomings and new directions for research work Shortcomings First, during research into accounting information systems, this thesis has not studied into accounting information systems by classification of group of listed companies and group of unlisted companies, because such classification will cause complication to the rating of efficiency of accounting information 24 systems Second, this thesis has not explained all of business operations in a construction joint stock company by classification of what factors constitute an accounting information system Third, during rating of efficiency of an accounting information system by reviewing level of satisfaction of the users, this thesis has just performed survey with all-level management without external objects, so that the representation of the survey forms is not detailed On the other hand, the scope of rating of efficiency of an accounting information system by reviewing level of satisfaction of the users only includes the construction joint stock companies located at Central Highlands; this thesis has known that there are certainly more five factors used by the thesis to perform rating of efficiency of an accounting information system by reviewing level of satisfaction of the users New directions for research work First, the research into accounting information systems operated by the construction joint stock companies should performed by classification of group of list companies and group of unlisted companies Second, the scope of research work should be smaller in order to provide a good solution for each of the factors that constitute accounting information systems operated by the construction joint stock companies Third, rating of efficiency of an accounting information system by reviewing level of satisfaction of the user should apply to the users in or out of a company And more factors used in rating of efficiency of an accounting information system by reviewing level of satisfaction of the users should be set up Fourth, the solutions that help improve accounting information systems should be suggested via gathering opinions of the users in the construction joint stock companies LIST OF PUBLISHED RESEARCH PAPERS Tran Thi Kim Phu (2017), Discussion of implementation of accounting data collection in construction companies, Industry and Trade Magazine, 10, page 364-368; Tran Thi Kim Phu (2018), Actual state of accounting data processing under application of information technology in construction companies operated in Danang City, Industry and Trade Magazine, 04, page 352-357; Tran Thi Kim Phu & Tran Hong Mai (2018), Some problems in accounting data collection in construction companies operated in Danang City, Finance Magazine, 1/11 Instalments, page 80-83, Tran Thi Kim Phu (2019), Rating of accounting information systems in respect to efficiency by reviewing level of satisfaction of users, Auditing and Accounting Magazine, 5/2019, page 59-69 ... (1) Quality of accounting information; (2) Quality of accounting information system; (3) Quality of service; (4) Satisfaction of system utilization; (5) Awareness of helpfulness in accounting information... account records are ensured to collect two types of accounting data, including accounting data in financial accounting and accounting data in management accounting; Third, the construction joint stock... financial accounting and management accounting Research targets General target: Complete improvement of accounting information systems operated by construction joint stock companies in Vietnam Typical