ABSTRACT
This
project is on computer an important system in the processing of accounting
information the question is, to what extent is computer recreant in the
processing of accounting information.
Technology
affords better ways of doing things. No one doing serous business today will
claim to be totally oblivious of the importance of computers are vary helpful
and generally time saving, some business can still so without it. Therefore while considering if to get
computer one should be rational and really should evaluate the benefits
derivable from a computer by the business visa-vis the planned investment
outlay.
It
is against this background that the major concern of this research was made to
identify desirable from computerization of accounting information system.
Chapter
one, is the introductory chapter. It
gives an over view of the research. It
examines the research problem the statement of problem the purpose of the study
significance, scope and limitations of study, research hypothesis and
definition of some terms.
Chapter
two provides a working definition on related literature. The following were
considered. The computer, organization
of accounting information system, impact/ relevance of computer in processing
of accounting information planning for a computerized accounting system,
benefit / cost of computerization in an organization and doing business without
computer.
Chapter
three examines the research methodology used in the study, it describes
research design, analysis procedure, source of data, collection of data,
population and description of questionnaires.
Chapter
four presents the result of the data analysis and the testing of
hypothesis. Chapter five discusses the
research findings based on data analysis.
The conclusion of the research findings and recommendations are made in
this chapter.
It
is hoped that this study will stimulate more research on related topics. Finally, it is hoped that the findings from
this study will add to the existing knowledge in administration.
DEDICATION
This
project is dedicated to God, the solution to all my life’s questions.
TABLE OF
CONTENTS
Title
page i
The
approval page ii
Acknowledgement
iii
Abstract v
Dedication
vii
Table of
content viii
CHAPTER ONE
1.0
Introduction 1
1.1 Background
of study 1
1.2
Statement of the problem 6
1.3
Research hypothesis / question 8
1.4
Significance of the study 10
1.5
Scope and limitation 11
1.6
Definition of terms 12
Reference 15
CHAPTER TWO
2.0
Review of related literature 16
2.1 The
computer 16
2.2
Organization of accounting inf. System 19
2.3
Impact/ relevance of computer in
processing
of accounting information. 21
2.4
Planning for computerized accounting system 26
2.5
Cost and benefit of computer to an organization 62
2.6
Business without computer 66
Reference 72
CHAPTER THREE
3.0
Research design and methodology 73
3.1 Research
design 73
3.2
Population 73
3.3
Sources of data 74
3.4
Data collection 76
3.5
Data analysis procedure 76
3.6
Description of questionnaire 77
CHAPTER FOUR
4.0
Data presentation & analysis 79
4.1 Data
analysis 79
4.2
Testing of Hypothesis 92
CHAPTER FIVE
5.0
Findings, conclusion & recommendation 115
5.1 Summary
of findings 115
5.2
Conclusion 117
5.3
Recommendation 118
Bibliography 119
Appendix i 121
Appendix ii 128
CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND OF STUDY
The basis
for financial planning and analysis is the financial information financial
information is needed to predict, compare and evaluate the firms earnings
ability it is also required to aid in
economic decision making investment & financial decision making. The financial information of an enterprise
is contained in the financial statement
or accounting report.
Accounting
is the guide post for management every enterprise should know the activities
carried on by it and the financial implication of its operations. The financial score of an enterprise is kept
by the accounting system accounting information unit in business context is a
unit in an organization that processes transaction to provide score
keeping. It points out the problem faced
or likely to be faced by the enterprise.
It also brings to the notice of the firm the opportunities that are
likely to arise. It indicates possible action,
when needed. Accounting is the process
of identifying, measuring and communicating economic information to permit
judgment and decision by users of the information.
Accounting
information could be classified under two heading or three headings. Under two headings. It is classified as.
1.
Financial accounting which provides information about
profit and loss and financial position of the organization at a given period
and management accounting which provides
management information needed for planning and control in an organization.
Under three
heading. It is classified as:
i. Routine – Internal report: That is day to day reports to management for
planning and control of the organization function for instance performance
report financial reports and accounts.
ii.
Non-routine report:
This aids management for examples budget forecast, estimates and
projections and articulation of computer organizational goals. No lay down format
iii.
External report :
this is for external interest groups like government and creditors.
In
the present country, the accounting information system has improved
tremendously owing to advancement in technology. The development of computer has been
acclaimed as the most important technological development of the twentieth
centaury
Davis
(1981-88) defined computer as a machine that is capable of manipulating or
processing data under its own control without the need for being. “I computer has an electronic device that has
the ability to accept data, internally score and automatically execute a
program of instruction performed mathematical logical and report the result.
Computer is the latest craze in Nigeria
today and it will continue to be relevant as the country develops. It has
gained acceptance in all sectors of the economy.
The computer system as an important in
the processing of accounting information cannot be over emphasized . the
complicated nature of decision which must be taken in business organizations
and government institution most especially in the area of financial and
accounting operation often makes the use of computers mandatory if efficiency and
effectiveness is to be maintained. As pointed out by Chukwu D.C.
The intelligent use of computer by the
industrialized nations are led to
efficient and effective private and public sectors which produce high quality
goods at low cost and are seller able to whether the violent storm of keen
foreign competition.
Developing economics like Nigeria
enjoy low cost goods and services provided by develop economics and at the same
time tries to protect their local industries from stiff foreign competition goods
and services provided by these developing communities are inferior and dearer
compared to that of developed countries.
Speed and accuracy of services are the
watch word in most computerized industries mainly in fully industrialized. This
makes it possible for them to realized their ultimate objectives (i.e. wealth
maximization)
Through the use of computers economic
pictures of the organization could be enhanced by cost displacement.
Operational and revenue improved by the introduction of computers in all
sectors of the economy. The tread towards representing information in manual
dates to Hollezith (1890). In recent time there has been a move towards doing
away with manual record keeping and transmitting the information electronically
leading to what is called “ Paperless optice†However, it normally turns out
that what goes automated is not the function as it has been performed to do
what would normally be uneconomical and in some cases impracticable. Instead
one looks for a character of function, typically consisting of transition of
current work of a number of people which can be redesigned so that he computer
can do something equivalent although usually not identical. Once such a duster
of work has been identified and the computer application designed one must also
redesign the jobs of the people with whom the computer application will have to
face.
The work of some workers will be
substantially affected by the introduction of computers it does not mean, for
instance that an accountant cases to be an accounted rather, the computer
greatly aids his diverse operation as an accountant.
In fact, computer is gradually taking
over all sphere of human endeavors especially the processing of accounting and
cam perform any function provided information fed into it is accurate, complete
and factual
1.2 STATEMENT OF THE PROBLEM.
In our world today computers are used
in large and small business education, science and engineering, health care,
sports, in the home entertainment and leisure, artificial intelligence expert
system, government and military. Due to the vest use of computer in almost
every sector of the economy, the need for controllers or information generated
by the computer becomes unavoidable.
One can rightly say that quick
customer services and fast accounting operation is far from being actualized in
some of our organizations. Quick services and fast operations means move work
being done in shorter time. A firm with these qualities will have unrivaled
customers attraction.
Musa (1985) noted that information
processing probably the most significant industry in the world economy today
and in the foreseeable future. It has expanded and continues to expand at a
rapid rate. This expansion is in part related to the increase in cost
effectiveness of computer hardware. Cost effectiveness has increase by a factor
far bout 1000 every decade. As long as
this rate charge continues, the rangers of tasks that can be handled most
economically by computing is likely to grow rapidly. Since software is the
major part of most computer systems, the field of software engineering can
expect similar rapid growth
At this junction we look at what is
actually the relevant of computer in the processing of accounting information.
According to Mcral C.N. the computer
can be used in a wide variety of ways and often it is only the potential user
who can appreciate and suggest thes uses. It is impossible that the user will
exploit the potentials of the computer of he depends ion experts.
The computer soon absorbs most of the
calculation and data processing within an organization. These have
traditionally been the accountants responsibility and it is likely that certain
aspect such as accuracy and control will remain his responsibility
It is known that overtime duties are
common in accounting system as the working hours do not seem to be sufficient
to finish a given days job. This of course means extra costs on the firm for
overtime allowances and utility bills.
Some areas of accounting are hardly
delved into by accountants because of high demands in time and human brain.
Untold time and money is spend in rectification of mistakes made by workers in
the course of manual processing of accounting information in particular and to
business organization in general.
The researcher would also like to know
how a business can apply computer, as well as planning for a computerized
accounting system to finally to find out why some organization prefer using
manual to using computer in business.
1.3 RESEARCH HYPOTHESIS / QUESTION.
RESEARCH
HYPOTHESIS
To come out with a reliable
result the following hypothesis will be formulated and tested statistically.
I.
Ho: Computerization of accounting information system
does not hinder the effectiveness of the accountant.
H1:
Computerization of accounting information system does not prevent increased
speed of operation, processing and accuracy of output.
II.
Ho: Computerization of accounting information system
does not prevent increase speed of operation, processing and accuracy of
output.
H1:
Computerization of accounting system prevents increase speed of operation,
processing and accuracy of output.
III Ho: Computerization of accounting
information system not hamper the reliability and better storage of accounting
information.
H1: Computerization
of accounting information system hampers the reliability and better storage of
accounting information.
IV. Ho: The use of computer does not militate
against accounting profession.
H1: The use of computer militate
against accounting profession.
V. Ho: Computerization does not effect the
employment of accountant to a large extent.
H1: Computerization affects the
employment of accountant to a large extent.
RESEARCH QUESTION
1.
Is computerization an aid, a burden or a hindrance to
a account?
2.
Are those benefits derived from computerization of
accounting information?
3.
Is it possible to introduce computer is an existing
company and how that take place?
4.
Does computers have effect on the performance of the
accountant? The researchers posed those question to enable her find out if
computers system is important system in the processing of accounting
information.
1.4 SIGNIFICANCE OF THE STUDY
It is important that
computerization would go a long way to enhance the overall effectiveness and
efficiency of the accountants. In fact, it is very necessary to computerize
accounting information for sound management decisions and implementation.
The importance of this study is to aid
managers by way of drawing their
attention to attainable ways of computer application in accounting information
system. This will also help managers to enlighten the accountant on the
benefits really derivable from a computer to the business vis-g-vis the planned
investment outlay.
Also, this research will help to
enlighten workers who feel and fear that computerization means displacement of
their job. Moreover, this will serve as a projecting pad for further research
in this field of study.
1.5 SCOPE AND LIMITATION
It is
imperative that a study of this magnitude will extent visits to a wide range
of organization to elicit information
from them. But this was not possible
under the present dispensation.
Therefore the scope of this study was
limited to United Bank for Africa PLC (UBA) and Euma consultant firm, with the
hope that conclusions reaches in the course of the study would apply to other
organizations.
Although every effort was made to
ensure that realistic dependable results are arrived at, it is worth mentioning
that the researcher encountered such problem.
i.
High cost of research materials coursed by the
irrelevant economic down-turn in the country.
ii.
Unwillingness of the respondents to give out certain
useful information to avoid revealing organizational secrets
iii.
Dearth of variable literature.
1.6 DEFINITION OF TERMS
a. COMPUTER:
In this study computer are
seen as an electronics devices which received data through the input devices
(keyboard and magnetic tapes) process the data in the central processing unit
(CPU) and gives out information at the output unit (Visual Display Unit VDU)
b. COMPERED INFORMATION
These are data received as
input, processed and given out as information to user. (that is information
that passed through computer)
c. IMPORTANT SYSTEM
This is a system that is
important. But system itself is described as the detailed plan or management
for the inter-relationship and interaction of available resources to accomplish
a given task.
d. ACCOUNTANT
A person whose job is to
keep and examine the money accounts of a business.
e. ACCOUNTING
This is the process of
identifying measuring and communicating economic to permit informed judgment
and decision by users of the information.
f. DATA
Data is a raw, unorganized,
unprocessed, unarranged facts, and figures about a person or anything per say.
g. PROCESSING
This is arrangement of an
information in such a way that they can be inderstood
h. DEVICE
A device is anything created
by man with his mental capacity.
i. ELECTRONIC
Things made up of chips
j. INSTACLATION
Of a new computer system
represents a major changes in the work routine of user. Careful consideration
should be given to system conversion to create a minimize of disruption to
business operations (i.e. an apparatus in a fixed state ready for use.)
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