Designing a model of smart financial monitoring in public sector accounting: Using the interpretive structural modeling (ISM)

Document Type : Research Paper

Authors

1 Department of Accounting, Najafabad Branch, Islamic Azad University, Najafabad, Iran.

2 Department of Accounting, University of Isfahan, Isfahan, Iran.

3 Department of Accounting, Bandargaz Branch, Islamic Azad University, Bandargaz, Iran.

Abstract

This study aimed to implement interpretive structural modelling for Smart Financial Monitoring in the accounting and reporting system of the public sector of Iran.  In terms of methodology, this research was qualitative-quantitative research conducted by interviewing the experts in the qualitative section. The statistical population was the qualitative section of university professors in the field of accounting and senior auditors of the Ministry of Finance and the Audit Court. In this study, we interviewed 12 university professors in the field of accounting and senior auditors of the Ministry of Finance and the Court of Calculations of saturation mode. Data analysis showed that content factors had the highest penetration power among variables. These factors include efficient and effective intelligent financial supervision, increased transparency in financial reports information, the possibility of comparing organizations' performance with intelligent financial supervision, the ability to verify functional data and prevent the creation of fabricated data, the ability to exchange information between governments, supervisors, stakeholders and citizens, and improving the quality of accountability. Based on the results of the research in intelligent financial supervision, the index of the utilization of new communication and information technologies, resources and human capital index, environmental factors index, content factors, quantification index, regulations and standards, regulatory mechanisms index, risk management index, business operational system index and structural components index is of great importance, but the index of in-service periods is of moderate importance. This study can be a good start for smart financial monitoring in the accounting and reporting system of the country's public sector.

Keywords

[1] A. Amin Eshayeri, Investigating the effectiveness of intelligent business systems in accounting systems, Quart. J. New Res. Approach. Manag. Account. 5 (2021), no. 73, 116–132.
[2] R. Candiotto and S. Gandini, Strategic enterprise management in the taps and fittings sector, D. Mancini, E. Vaassen and R. Dameri, (eds) Accounting information systems for decision making, Lecture notes in information systems and organization, Application of the balanced scorecard methodology to business intelligence systems, 2014.
[3] M. Chen and S. Liu, Business intelligence fusion based on multi-agent and complex network, JSW 9 (2014), no. 11, 2804–2812.
[4] T.H. Davenport, Big Data at Work: Dispelling the Myths, Uncovering the Opportunities, Boston, Harvard Business Review Press, 2014.
[5] H. Emrayi and A. Azar, Providing an effective model for monitoring and evaluating the financial performance of the public sector in performance-based budgeting, Financ. Account. Audit Res. 13 (2021), no. 4, 53–86.
[6] S. Faraji, Investigating the effect of business intelligence on organizational decisions: with an approach to building and implementing a business intelligence system, Int. Summit Manag. Elites, Tehran, 2016.
[7] H. Khodabakhshi and M. Jabari, The necessity of monitoring before and during spending in the performance-based budgeting system, Econ. Mag. 15 (2015), no. 1, 53–66.
[8] A. Lonnqvist and V. Pirttimaki, The measurement of business intelligence, Inf. Syst. Manag. 23 (2006), 32–40.
[9] L. McPhail and M. Joseph, Machine learning implications for banking regulation, Routledge Handbook of FinTech, 2019.
[10] H. Najari, F. Heydarpour and A. Jahanshad, Application of business intelligence in the quality of financial information with emphasis on principles and limitations and measurement in accounting, Account. Audit. Res. 48 (2020), 121–136.
[11] A. Nespecaand and M.S. Chiucchi, The impact of business intelligence systems on management accounting systems: The consultant’s perspective, Network, Smart and Open, Three Keywords for Information Systems Innovation. Cham: Springer International Publishing, 2018, pp. 283–297.
[12] M. Noshazar and M. Heydari, What and why financial supervision and accountability in the public sector, Knowledge Financ. Law 5 (2021), no. 15, 5–43.
[13] S.M. Ramezani, A. Ahmadi and M.H. Saeidi, Investigating factors affecting the improvement of financial supervision in the financial system of the public sector of Iran, First Iran. Nat. Conf. Audit. Financ. Supervision, Ferdowsi University of Mashhad, 2017, 15-16 February.
[14] P. Rikhardssona and O. Yigitbasioglub, Business intelligence and analytics in management accounting research: Status and future focus, Int. J. Account. Info. Syst. 29 (2018), 37–58.
[15] R. Roslender and S.J. Hart, Integrating management accounting and marketing in the pursuit of competitive advantage: the case for strategic management accounting, Critic. Persp. Account. 13 (2003), no. 2, 255–277.
[16] R.L. Sallam, J. Richardson, J. Hagerty, and B. Hostmann, Magic quadrant for business intelligence platforms, Stamford, CT: Gartner Group, 2014.
Volume 15, Issue 7
July 2024
Pages 17-28
  • Receive Date: 18 April 2023
  • Revise Date: 15 June 2023
  • Accept Date: 07 July 2023