Implication Of Information Technology On The Practice Of Accounting In Nigeria

Implication Of Information Technology On The Practice Of Accounting In Nigeria

Abstract

The purpose of this proposed project work is to describe in detail the value of information as a major requirement of the management function, as well as an essential ingredient that improves efficiency and reduces the work load if handled manually, which causes considerable delay and has enabled a better control system to be implemented within and outside any organization/business enterprise. This information technology was developed through the use of an electronic device known as a computer, which enables an organization to effectively manage data and distribute information. In this regard, we can conclude that the computer has become an indispensable ally in virtually all human endeavors. The work for this research endeavor will be divided and elaborated upon in five chapters. The background of the study that aids in the preparation of a financial report using a computer should be included in the first chapter, as well as a statement of the problems that will be examined to determine if the study actually improves the gathering of useful information, its processing, and its communication to ensure prompt decision-making. It also explains the purpose of the study, which is to detect and correct false information through system retrieval. The significance of the research to various groups and professions, the hypothesis, the study’s scope, and a glossary of terms. The second chapter will explain the introductory statements, the historical context of the computer’s invention and the people behind it, the various components that make up a computer, the varieties and their classifications, as well as its utility as an electronic device. The third chapter of this project will discuss the research methodology as a means of determining certain findings and possible solutions for resolving them, as well as its approaches, design, specific sample size and population, questionnaire and its purpose, and data analysis using a variety of research instruments. The fourth chapter will include an introduction based on the analysis and interpretation of data with various examples to be placed, bringing about queries with responses from respondents to be clearly stated, as well as an observation regarding who performs the project work.

Chapter five will conclude with a Summary, Conclusion, and Recommendation that explains the significance of computer as an information technology in any business organization where accountancy is practiced.

First Part

1.1 Introduction

Along with other forms of energy and matter, information is a fundamental resource in human society. It is an indispensable ingredient in management that makes a significant contribution to the quality of management.

Before a specific decision can be made, the management requires analysis and information, and the quality of the decisions to be made depends on the quality of the information provided. This information must be precise, current, exhaustive, concise, and pertinent. Information is equivalent to computer A computer is a popular term for an electronic device that can receive data, store it internally, automatically execute a program of instructions, perform mathematical, logical, and data-based manipulation operations, and report the results. As a result, one could argue that we are on the verge of a paperless era in which virtually all business transactions will be concluded thanks to the computer’s indispensable role in almost every aspect of human endeavor.

The application of computers to provide essential business information is progressively replacing the manual method. Nonetheless, the focus of this article will be on the gradual incorporation of information technology into the practice of accounting and its implications for the performance of an accountant’s duties. Prior to this, we will consider an accountant as having dual responsibilities;

(i) Information provision for planning, control, and decision-making.

(ii) The Protection of Assets

(i) Information Provision for Planning, Control, and Decision Making.

Information is considered the lifeline of any individual or organization that must endure. Consequently, it could be regarded as the pivot around which any organization revolves. The managerial functions of planning, controlling, decision-making, communicating, organizing, and directing may not be attained in the absence of adequate and precise provision of this information.

Information emanates from various organizational functions, including sales and marketing, production, human resources, finance, etc. It has made accounting information a necessary financial instrument for effective management within an organization. An accountant is required to provide an organization with accounting information that is accurate and presented at the appropriate time. Consequently, it is of great significance that the use of computers for this purpose becomes necessary in the following areas:

(i) The accurate and timely presentation of accounting data for management decision making.

(ii) A decrease in the number of personnel, which reduces the cost of employee remuneration.

Complex computations, such as the separation of fixed and variable costs through multiple regression analysis, linear programming using the simplest method, etc., may be difficult to perform manually.

With the introduction of computers to business operations, space management is simplified. This is due to the fact that a great deal of information can be stored in a computer on disks, flash disks, cassettes, or floppy drive diskettes and retrieved when necessary.

Instead of manually sifting through a large number of disorganized documents, retrieval is primarily automated here.

(ii) Safeguarding of assets and current assets because it is only possible to safeguard these assets if and only if there is genuine and

We can merely state that the company’s assets are not restricted to fixed data sufficient to do so. Therefore, data should be regarded as a valuable asset to protect for the efficient operation of an organization, necessitating the maintenance and management of data resources.

1.2 Goals Of Data Resources Management

The organization’s substantial investment in its data necessitates data protection. However, data can be significantly more valuable than the amount spent to acquire it. For example, if an organization loses its records of those who owe it money, it could lose more than it spends on data processing in a century. Future investments rely on it as well, as it is through the available data that he selects in relation to past and current performance. Moreover, erroneous data would unfailingly mislead management in light of the foregoing. Consequently, the impact of information technology on the practice of accounting in terms of information processing, control, and asset protection is of immeasurable value to any organization.

(i) BRIEF HISTORY OF ACADEMY PRESS PLC

Richard Gamble, a young American, led a party of twelve American college students into Nigeria in 1957, when the country was moving toward independence. Mr. Gamble returned to Nigeria four years later to establish EDCON (Enterprises Development Company Nigeria Limited) with the intention of assisting Nigeria in the development, financing, and administration of medium-sized businesses.

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The holding entity through which American capital could be invested was EDCON at the time. In 1961, Mr. Gamble met Mr. Alade Idris Animashaun, the assistant secretary at the Federal Ministry of labor at the time. Mr. Animashaun departed his government position after two years to join EDCON and begin a new career in the private sector. Eventually, Lan David Pritchard (Late), an Englishman with experience in publishing in West Africa, joined EDCON. Investigations conducted by EDCON in 1963 and 1964 indicated that Nigeria would have a growing demand for printing materials, the majority of which were imported.

Later, a decision was made regarding how to establish a printing company, and this led to the incorporation of Academy press limited on 28 July 1964, with a commercial launch scheduled for the second half of 1965. Initially, only Nigerians and themselves held 15% of the equity holding finance, while EDCON retained the remainder. With the promulgation of the Nigerian Enterprises Promotion Decree, Nigerians acquired some of the foreign-owned stores, the majority of whose owners had invested in the company at the time of its initial public offering, and the company became majority-owned by Nigerian citizens.

The gradual expansion of Academy press has resulted in a current personnel of over 450 people. Academy press has distinguished itself as a leader in the printing of educational and commercial books, as well as a wide range of full-color printed materials, labels, magazines, company annual reports, brochures, and security printing, among other things.

As part of its development, the company’s computer operations began in the late 1980s. Today, the majority of its departments are computerized, and Academy Press is the largest printing enterprise in West Africa.

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Since then, it has faced a variety of obstacles as the administration has changed and it has adapted to the current organizational structure. All of this could be accomplished to improve the flow of information, which is essential for the efficient administration of a company.

1.3 Statement Of Problems Of The Study

Human capital has supplanted “Naira” and capital as the primary strategic resource in both the human and information societies. In modern times, comprehensive information technology links people and profit.

The Nigerian and global economies have become so dynamic and complex that the rapidity with which information is gathered, processed, and communicated in order to make prompt decisions will continue to determine market success. In light of the preceding, the study’s concerns are as follows:

The academy press has an issue with an insufficient management information system.

(ii) Personnel deficit in the computer sector

(iii) Insufficient financial resources to acquire and acquire additional computer systems.

1.4 Objectives Of The Study

(i) It saves labor

(ii) It decreases uncertainty

(iii) It facilitates the free movement of information

(iv) It discourages speculation, rumors, and hearsay, thereby fostering trust, confidence, and a supportive attitude.

(v) It may be a correction of false information from the past.

It boosts an accountant’s self-assurance and encourages him to demonstrate effective leadership.

1.5 Historical Context Of The Research

(i) For financial costing and management system

(ii) It facilitates the compilation of cash flow projections, and the effect of a change in credit restriction and a decline in debtor payments can be calculated almost immediately.

(iii) It enables to compile financial report.

(iv) To retrieve management information, particularly financial, marketing, sales, and production-related data.

1.6 Research Questions

(i) Does Academy press have a problem with deficient management information?

(ii) If possible, what are the probable causes of the issue?

(iii) What steps can be taken to resolve the issue if the company follows the recommendation?

1.7 General Hypothesis

The following hypothesis is derived from the previous studies, which were discussed in the review of the relevant literature that clarifies the study of hypothesis.

(i) This prudent management procedure will reduce loss

That the electronic data processing system is more appropriate than the conventional system.

(iii) The introduction of computerization will result in an enhancement to the company’s general accounting system.

That the introduction of new information technology will improve the efficiency of work flow.

(v) That effective management reports will enhance the company’s goals and requirements

In addition, the excellent management reports provide a clear link between corporate strategies and the management reports.

1.8 RADIUS OF THE STUDY

It is not within the scope of this undertaking to delve into the fundamentals of computer science as a field, but rather to examine its application and utility to accounting as a profession and to business in general.

1.9LIMITATIONS

This is accompanied by the fact that even staff members are restricted from using computers, rendering the system inaccessible to us. In addition, the staff’s inadequate knowledge of computer operation and use made it difficult for the majority of our interviews to be satisfactorily addressed. However, with the help of the staff, I was able to obtain the necessary information that is not only pertinent to the study, but also crucial to its success.

1.10 Definition Of Terms

The following concepts are expected to be used frequently in this project’s work:

(i) PROGRAMS: These comprise of a set of instructions that specify the precise sequence of operations to be performed by the computer.

(ii) DATA: This is the actual number obtained from daily activity data.

(iii) INFORMATION: This is derived from the processing of data and its subsequent distillation.

(iv) DATA PROCESSING: This is the procedure of gathering all source data together and transforming it into useful information. Data processing involves capturing, categorizing, calculating, storing, retrieving, and communicating information.

(v) Hardware: This category includes computer machinery and peripheral devices.

(vi) SOFTWARE: This refers to a broad term encompassing the methods of utilizing and controlling computers, including system programs and other facilities.

(vii) DIGITAL COMPUTER: An electronic device that operates on data represented as digits (numbers).

(viii) COLLECTION OF DATA: This represents the gathering of data for processing as one of the stages of a data processing program.

(ix)