ABSTRACT
Digital finance offers numerous improvement opportunities to daily business activities. One of them is automated Enterprise Resource Planning (ERP) systems which can help deliver output data necessary for management as well as preparation of financial statements. Using such systems creates operational risk associated with the possibility of incorrect output that leads to inaccurate reports, thus, false decisions. The aim of this chapter is to assess the risk of incorporating erroneous data into financial statements, which intentionally and unintentionally can be performed by users of Accounting Information Systems (AIS). The research is based on a 2 × 2 experiment evaluating the effect of workload and the materiality of AIS error on users’ decisions to correct/use incorrect AIS output. We broaden the knowledge in the field of Operational Risk Management (ORM) linked to financial statements by indicating that workload plays a significant role in AIS users’ decision-making, while the materiality of an error did not influence decisions made by AIS users. We further discuss the possible solutions to mitigate the operational risk associated with using automated AIS.
