A CRITICAL REVIEW OF THE IMPACT OF GOOD ACCOUNTING SYSTEM IN THE GROWTH AND DEVELOPMENT OF INSURANCE INDUSTRY
ABSTRACT
The study critically examines the impact of good accounting on the growth and development of the insurance industry. Accounting issues include: In the insurance industry, fraud causes misinterpretation of financial statements and causes problems. The purpose was a matter of proper accounting. In this study, the issue of proper accounting at 1G1, Leadway, and NICON insurance companies was critically examined. This study made affair contribution towards the understanding of the treatment of various items by insurance companies and their accounting department. Data was sources from primary and secondary data, the primary data used was questionnaire the and observation to the accounting staff of IGI leadway and NICON, while secondary data are annual reports accounts, journals insurance year book etc. in the determining the sample size, Taro Yamani’s was used. Method of data presentation, tabular method was used in data presentation and analysis, it assembles information on the attributes under study in such a way that the relationship between all the information that can be observed and clearly understood at a glance.
TABLE OF CONTENTS
Title Page
Abstract
Table of Contents
CHAPTER ONE:
INTRODUCTION
1.1 Background of the study
1.2 Statement of the study
1.3 Objectives of the study
1.4 Research Questions
1.5 Research Hypothesis
1.6 Significance of the study
1.7 Scope and Limitation
1.8 Definition of the Operational Terms
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 An Overview
2.2 Historical development of IGI Leadway and Nicon
2.3 Historical Development of Insurance in Nigeria
2.4 Meaning and Functions of Insurance in Nigeria
2.5 Meaning of Accounting System
2.6 The impact of Good Accounting System on the
Insurance Industry
2.7 Examination of the Various Accounting principles that
Exist in the Accounting System
2.8 Measuring Good Accounting System and Insurance
Growth
suggestion
This study provides a critical review of the impact of good accounting systems on the growth and development of the insurance industry. Accounting issues include: In the insurance industry, fraud causes misinterpretation of financial statements and causes problems. The purpose of this study is to find solutions to the above problems, examine why good accounting systems in the insurance industry are not well-performed, and show that poor accounting controls in the insurance industry can lead to fraud. and explain how misunderstandings of cancellation can occur. cause problems. The survey questions are: Why have good accounting systems not been fully implemented in the insurance industry? How can improper accounting practices in the insurance industry lead to fraud? Explain how misinterpretation of financial statements can also be a problem. References Some information was collected from libraries and some textbooks. RAM Olugbega (2004) Theory and practice of long-term insurance publishers. This study is an attempt to examine the problem of systems of good accounting in 1G1, Leadway, and Nikon insurance companies. This study contributes to the understanding of insurance companies’ treatment of items and their accounting. Sources of data, data sources are primary and secondary data, primary data use is questionnaires, interviews and observations with IGI Leadway and Nikon’s accounting staff, secondary data are annual reports, accounting, journals, Insurance yearbooks, etc. Data presentation methods, tabular methods, are used to present and analyze data and summarize information about the investigated attributes in such a way that the relationships between all observed information can be clearly understood at a glance. Finally, if the insurance industry’s excellent accounting system is believed not to be properly operated, poor accounting management in the insurance industry will cause fraud, and misunderstanding of financial statements due to lack of proper accounting is also a problem. results in causing Lack of interest in this accounting sector of the insurance industry.
chapter One
Foreword
1.1 Research background
Insurance accounts related to insurance companies are local special accounts and are always called “special accounts”, as taxation is their specialty. It applies common accounting principles, concepts and practices, but requires a clear understanding of its preparation.
In the days of T-form financial statement templates, insurance accounts were easily identified by the side of the “T” to which income and expense items were posted, but they were not in the traditional form. The convention was to place the insurer’s revenue items to the right of the “T”, revenue items to the left of the “T”, and expense items to the right of the “T”.
Today, there are other characteristics that distinguish the insurance industry or corporate or corporate accounting systems from those accounting systems.
Me. Legal obligation to file quarterly and annual reports with the Central Bank of Nigeria (CBN) and the Insurance Regulatory Bank of Nigeria (NISB).
ii. legal restrictions on the types and amounts of insurance capital investment;
iii. Legal requirements for return conditions to the Nigerian Insurance Regulatory Authority (NISB).
1.2 Problem Description
Accounting issues in the insurance industry include:
1. The insurance industry does not have a good accounting system in place.
2. Improper accounting in the insurance industry leads to fraud.
3. Misinterpretation of financial statements also poses problems.
1.3 Purpose of the survey
The purpose of this research paper is to find a solution to the above problems while explaining and illustrating some points to practically support accounting staff in the insurance industry, as follows:
1. Examine why good accounting systems in insurance have not been properly implemented.
2. Evaluate how poor accounting practices in the insurance industry lead to fraud. 3. Describe how misinterpretation of financial reports causes problems.
1.4 Survey Questions.
Some of the research questions are:
1. Why was a good insurance accounting system not properly implemented? 2. How does fraud due to accounting fraud occur in the insurance industry?
3. Describe how the misinterpretation of the financial statements caused the problem.
1.5 Research hypothesis
In this research paper, a null hypothesis (Ho) and an alternative hypothesis (Hi) are used, with the null hypothesis (Ho) used to reject and the alternative hypothesis (Hi) used to accept. 1. Ho:
The insurance industry does not have a good accounting system in place.
Hi:
The insurance business has a good accounting system in place.
2. Ho:
Improper accounting in the insurance industry leads to fraud. Hi:
Improper accounting in the insurance industry does not cause fraud.
3. Ho:
Misinterpretation of financial statements also poses problems.
Hi:
Misunderstandings in financial statements do not cause problems.
1.6 Importance of research
The industry continues to grow, indicating that more public money is being put into the hands of others in the form of bonuses. Proper and proper reporting is required so that trust can be built in the industry. The urgency of the internalization of capital markets in the economy and the consequent need for mergers and acquisitions as a means of survival require the proper understanding and treatment used in all of this.
The significance of the research is as follows.
1. It is important for me to have a partial HND degree.
2. The use of accounting by the insurance industry is important.
3. Accounting is important to the financial industry.
4. Be important to society in daily transactions. 5. It is also very important for the economy, especially in the oil and gas sector.
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