The increase usage of digitalisation in the business operation nowadays has put a significant increase of the usage of Accounting Information System (AIS) in Malaysian SMEs to improve the financial management activities, increase operation efficiency and improve the decision-making process. However, the successful implementation of AIS is not only dependent on the technology capabilities but also influence through the internal control effectiveness and cybersecurity readiness of the SMEs. This study explores AIS adoption, internal control practices and cybersecurity readiness in three Malaysian SMEs operating in retail ecommerce, manufacturing and fashion retail. This study employed qualitative multiple-case study approach where the data is collected through SMEs reports, interviews and operation documents. The findings show that affordability, ease of use, inventory management requirements and reporting capabilities are among the main drivers of AIS adoption. SMEs improved their operational efficiency and preparation of financial reports through the AIS adoption, but they still continue facing challenges in internal control activities and cybersecurity readiness. This study provides a conceptual framework on adoption of AIS, internal control effectiveness and organisational performance of cybersecurity preparedness. The results ass to the growing body of literature on digital transformation for SMEs and practical implications for business owners, policy makers and accounting professionals.
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