CHAPTER ONE
1.0
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
In
Nigeria today there is a great need to peer inside the accounting control
system of computerized industries, as this action will involve the ratification
and the testing of the enterprise control system with special regards to how
the industries is operated upon as well as to ensure the effectiveness of the
enterprises accounting system.
However,
the regulation of business activities under an efficient system of accounting
control may obviate the necessity of protracted detail work by auditors with
beneficial result for all the parties concerned.
This is because is real life,
situations especially with regards to case of fraud and errors in organizations
most of the time without the best of intentions may still intentionally or
unintentionally make mistake. It is not
surprising however that inmost brewing industries there are cases o stock
losses mis-appropriation of funds, embezzlements. Even though there no
“prima-facie†evidence of crime being committed, yet the fact and figures of
fraud both in private and public sectors are not today’s standard truly
staggering in the world.
The
individual components or internal control system as know as “control or
internal control†these control enable internal check to be placed on result of
all such control thus becomes the prevention and early detection of these
irregularity even whenever they occurs.
1.2 STATEMENT OF PROBLEM
In the present century, the information
system has improved tremendously owing to advancement technology. The introduction of the electronic computer
has provided electro-mechanical capabilities for the recording, reproduction,
analysis for effective management of the accounting and business world cannot
be over-emphasized if management report are to serve any meaningful purpose
they have to be produced on time.
Having
a computer system alone is not enough as there has to be effective management
team monitor the affairs of the organization.
More so, there is also less. Thus, the authors interred to undertake an
evaluation of the accounting control in a computerized Nigeria.
1.3
OBJECTIVE OF THE STUDY
The primary aim of this research is
to examine the accounts
control. The authors internal to evaluate the system
by identifying the areas of strength and weakness instituted by management of
the firm under study. Also to provide
for security and to safeguard it’s amities, accuracy and reliability of it’s
records and consequently finding ways of reducing the probability of fraud,
errors and other irregularities common
in such large establishment.
Moreover,
it is aimed observing the principles that give guide the recording of the financial
transaction of the company with the intentions of ascertaining principles. After analyzing and evaluating the company’s
system of control the research also aimed at offering suggestions and
recommendations based on the findings.
1.4
SIGNIFICANCE OF THE STUDY
As this area of accounting that has
not been extensively
studied in Nigeria, the result of this
research shall assist in laying emphasis on the computerized accounting system
contribution of computers in industries found in the economy.
The use of computer in the industries
have been of great help in evaluating the internal control system. As increase in technology and civilization
has it that the people become more computer literate the accounting control
system in computerized industries involves.
i.
keeping
on the whole system involves each department in the establishment
ii.
the
use of control accounts as using of other accounts might include physical access
restrictions to computer terminals
iii.
the
carry-on of effective running of the firm an efficient manner
iv.
Ensure
the safety of assets.
The study may be
beneficial and helpful to the following
bodies: -
a.
The
government: as they can derive revenue from taxing such outlets. These could be used for social infrastructure
and capital expenditure.
b.
The
economy in general: - This is because in an industry
c.
Research
scholars
d.
Foreign
interest groups
e.
The
banking sectors
f.
Home
industries making use of computerized accounting control system
g.
The
production sector/business:- effective control of business will result to
wealth maximization and profit accumulation.
1.5
LIMITAITONS AND SCOPE OF STUDY
As part of the company’s bureaucratic
arrangement, only the
general manager has the power to
authorize the release of confidential maters to trade association journals.
Based on the scanty information found in the journals there with the project
writing was quite difficult, but subsequent papers were proved helpful.
Also
there is no clear but accounting control measure that should be established in
any single organization. Nevertheless,
some basic principle of accounting control will charge where the accounts are
kept manually. Thus, beside the system
of accounting in the study also examines whether laid down policies and
procedures of accounting control system are adhered to.
1.6
DEFINITION OF TERMS
The communication of facts and ideas
in any field is
dependent on a mutual understanding
on the works used. The purpose of this
section is to present different definitions of some of the technical terms used
in the study.
i. ACCOUNTING
Accounting
is used to describe the transaction entered into by all kinds of
organization. These terms is therefore
used by people associated with business, whether they are manager’s owners,
investors, banks, lawyers and accountant.
ii. COMPITER
This
is an electronic symbol manipulating machine that is designed and organized to automatically
accept and store input data, process and produce output results under the
direction of a detailed store program of instructions.
iii. ARITHMETIC UNIT
This
is the part of the computing system containing the circuit that does all the
adding, subtracting, multiplying, dividing and comparing.
iv. BACK-UP DISCOVERY
PROCEDURE
That
portion of a business computer system of accounts concerned with saving data
and restoring it in the event of a problem or disaster.
Get the Complete Project Material Now!!!
