The Effect Of Computerized Accounting Information System On The Control Of Payroll Fraud In Nigeria Public Sector

The Effect Of Computerized Accounting Information System On The Control Of Payroll Fraud In Nigeria Public Sector

Abstract

The broad ideal of this exploration work is to estimate the effect of motorized account information system on the control of payroll fraud in Nigerian public service, The experimenter examined the effect of motorized account information system in precluding payroll fraud in Nigerian public service, estimated the effect of payroll fraud on public responsibility in Nigerian public service and caught on the effect of payroll fraud on the development of Nigerian frugality. The study inversely linked the colorful challenges of motorized account information system in Nigerian public service. Data for the study was sourced from two main sources which include Primary and Secondary sources of data Collection. Primary data questionnaires and oral interviews were used to collect information from the repliers. Secondary data journals, and other applicable accoutrements relating to the area of my disquisition will be review. expansive literature review was carried out on the direct literature and circular literature on books, journals and once workshop. The exploration instrument used in this study includes oral interview and questionnaire. The questionnaire is structural as to contain both close and open concluded question. Simple tables and probabilities were used in treatment of data. ki- forecourt was used in testing the suppositions. Grounded on the analysis the experimenter set up out that There’s a relationship between the operation of the computer and homemade system in the account system of the banking assiduity. This was set up to be true because the operation of a motorized account system in banking operations aids quick client services decision timber process and quality performance than in homemade account system. Also, the installation of account software in the computer, processes data and creates reports much faster than homemade system which is slow. It’s apparent that the impact of motorized account system enhances advanced development and profitability in banks. Grounded on the findings the experimenter recommends that government establishment should take advantage of the excellent benefits derivable from the relinquishment of well designed motorized account system. This will help them to achieve a high and respectable standard of quality in the performance of their banking operations. Government should conduct reasonable proportion of their sweats and coffers to the training and development of their bankers and accountants labor force( force development) through forums , shops and the use of computer. Account system so as to promote effectiveness in banking operatives and in their statement of fiscal position insure accurate timely and much easier and dependable for use.

Chapter One

Preface

Background of the Study

moment’s ultramodern technology brought into use the computer. This technology is the operation of wisdom to gathering, recording, recycling and communicating of business information by means of electronic media. The most common tool for operation is the computer and it involves all the sale processing, system, operation information system, colorful business support system etc. The computer is a central force in the advancement of colorful associations. The literal development of computer started with Hollerith punched card of 1880, Goerge Alken calculator and Charles Babbage ’ creation of the difference machine.

The computer can be defined as a tool or device which is suitable to accept data( data) and figure in a specified form, apply prescribed processes to data and force result of the processes in a specified format as a meaningful information. There are also different types of information depending on the make or type of their functions. The revolution in technology to the computer complements or in the other hand, cover for ten rudiments which are- paper, particular memos, maps, reports, calculators, outstations letter.

Hartzell( 2006) defines computer as an electronic machine for recycling information automatically and veritably snappily. The significance of computers is its capability to handle vast quantum of information and to do other processes with delicacy and speed.

Tasks which can not be manually accepted have been honored and appreciated by fiscal institutions, hence the trend in the computerized of banking operations.

Tanembaum( 2010) sees computer as a machine that can break problems for people by carrying out instructions given to it.

The American Accounting Association defines counting as the process of relating, measuring and communicating profitable information to permit informed judgement and decision by druggies of the information. Account is also the establishment, conservation, collection and analysis of fiscal position of an association and any changes that have passed or may do overtime.

Omolehinwe( 2009) defines account as the collection and recording of fiscal data about an association whether in the private or in the public sector and assaying the data so collected to suit the decision that needs to be taken and reporting the applicable information in a summary form to the stoner in a form that’s meaningful to him or her.

Chionye( 2003) defines counting system as the art of relating, recording, classifying measuring and interpreting in a significant manner the fiscal sale of an association for decision timber. recapitulating from time to time the information contained in the record, for its significant donation and interpretation to interested parties as an aid to decision timber.

Account system is also defined as a harmonious way of organizing, recording, recapitulating and reporting fiscal deals. Robotization is the installation of computers as a part of a process of robotization.

Banking in Nigeria has substantiation emotional development in recent time particularly within the last decade in time with growth in profitable conditioning and complications, banking service have expanded significantly in size and variety due to increased by robotization of public service.

The term’ payroll’ encompasses every hand of a company who receives a regular pay envelope or other compensation. Some workers may be paid a steady salarywhile others are paid for hours worked or the number of particulars produced. All of these different payment styles are calculated by a payroll specialist and the applicable hires are issued. Companies frequently use objective measuring tools similar as timecards or timesheets completed by administrators to determine the total quantum of payroll due each pay period.

After a payroll accountant multiplies an hand’s hours by his or her pay rate, the gross income quantum is entered into a calculator or computer program. Regular deductions similar as duty withholdings, FICA payments( social security), medical insurance, union pretenses , charitable benefactions and so on are also distributed and abated. The remaining balance is also converted to a check and becomes the hand’s net pay for that time period. Payroll departments also identify the employer and workers by a civil law and keep a running census on total income and deductions for the financial time.

Setting up an effective payroll system isn’t especially delicate for trained accountants, but it can be veritably time consuming. Some lower businesses calculate on stoner-friendly computer software to set up a simple payroll system complete with check printers and train storehouse. Larger companies may assign trained accountants to handle payroll issues as part of their overall duties. But numerous businesses without the means to maintain their own payroll systems choose to cultivate out this task to outside specialists.

Since payroll records are grounded on objective criteria similar as timecards and civil duty forms, outside accountants can perform all of the computations, store all of the time- to- date data and issue hires in a timely fashion. Employers simply need to modernize these payroll companies with changes in hand pay rates or deductions. The experimenter aimed at assessing the effect of motorized account information system on the control of payroll fraud in Nigeria public service. Business organisations, especially the large bones exit to carry out certain duties and liabilities to their possessors and those who have interest in them. One of the means by which they could achieve their points and objects involving paying particular attention to information requirements of the parties they live to serve, both internal and external. also, large business organisations typically have sizable number of workers on their payroll. Coupled with this fact, they’ve to pay important attention to certain effects to make them operationally effective; the main critical area now being considered is the’ Time and Attendance Management’. utmost companies aren’t really appreciating the losses that can do without proper time and attendance account.

FredrickW. Taylor was generally appertained to as the” father of scientific operation”. He and his associates argued that the operation of scientific operation in an assiduity would increase productivity. The principle that was also substantially applicable to the plant bottom is now being extended to the office operation through the conception of robotization.

A analogous and veritably pivotal question that also arises is, how does the information get across to the ultimate druggies similar as the shareholders, trustees, creditors, government, and the general public, at least to guide them in their opinions? Then we’re talking of ideal communication media and the conception of reporting. These are typically done through the periodic reports of companies in agreement with statutory conditions for each organisation and yearly pay advice slips to the workers.

This means it isn’t enough just to reuse information, but also to communicate it within the confine of the bills. Then the field of study that becomes applicable to fulfil this aspect is” counting system”. The ultramodern account system presently concerned with producing two types of information

• Financial Accounting for recording day- to- day conditioning of business and producing period summaries.

• Management Accounting( going Account)- for supplying of counting information to internal operation in order that it can essay to plan and control its unborn business conditioning.

Account has been similarly described as it were being carried out manually on books and paper. Secretary is a tedious process involving entry into the books of large number of deals. The nature of assiduity over the once times had brought some brought changes and it’s likely that the new renaissance will bring indeed more change. The terrain and artificial conditions have come more unpredictable, there’s adding operation of microelectronic in the plant and office, and there are increase and ever- changing competitive pitfalls especially from overseas. In addition, the part of accountant as the sole or primary supplier of information to operation is being challenged by other information specialists, experimenters, directorial economists and business studies graduates. As payroll for medication is an integral part of account conditioning and for payroll section to fulfil her primary part, the main focus would be to look into the stylish way to integrate effectively especially in the field of information technology and reporting.

Statement of the Problems

The computer is known for it’s speed and delicacy in recycling information. similar speed and delicacy haven’t been achieved manually or by any other device. It’s anticipated that a motorized banking system will grease the speed and delicacy of processing deals of fiscal nature and also reduces guests staying time.

In malignancy of the benefit of computer to banking assiduity and business generally some problem are still left unsolved and new bones have been created by the use of computer itself;

The use of computer to keep counting records.

Another problem is the relegation of labour hands in the account department and its grievance counteraccusations .

It has been observed that in Nigeria huge quantum of plutocrat is lost through fraud and other felonious temptations which drain the nation’s stingy coffers through fraudulent means with its far- reaching and attendant consequences on the development of the nation. therefore, like Kamaludeen( 1991) observes “ billions of naira is lost in the public sector every time through fraudulent means ” this he argues represents only the quantum that’s hounded out and made public.

Indeed much more substantial or huge totalities are lost in undetected frauds or those that are for one reason or the other hushed up. Cases of frauds in the public sector are so pronounced that every one in every member of the public service could feel to be involved in one way or the other in some of those nasty acts. This assertion isn’t delicate to appreciate if we accept and borrow the simple description of fraud as any deliberate false act aimed at deceiving or harming any party, individual or commercial body, in any manner. Haladu,( 1991) put it starkly when he observes that

The bane of fraudulent administration in Nigeria has since the oil painting smash time, a period under which the abstaining observation becomes applicable, has been the subsistence of structurally weak control medium, which produce a variety of loopholes that have tended to grease and sustain loose practices. This is coupled of course, with the fact that there’s a near total absence of the notion and ethics of responsibility in the conduct of public affairs in the country.

What all these tend to expose is that there’s a operation or functional problem in the Nigeria public sector in the area of fiscal or counting control. therefore, one needs not to wonder important how devastatingly frauds have compromised the executive capability, performance capacity and general credibility of the public sector. original estimates of major systems come little fragments of ultimate costs paid; original cash protrusions produce lower than half of the benefits anticipated and systems which sounded technically doable and economically feasible, turned out “ while giant “ if not abandoned, with serious counteraccusations for growth and development.

Objects Of The Study

The broad ideal of this exploration work is to estimate the effect of motorized account information system on the control of payroll fraud in Nigeria public service. The specific ideal of this study includes the following;

1. To examine the effect of motorized account information system in precluding payroll fraud in Nigerian public service.

2. To estimate the effect of payroll fraud on public responsibility in Nigerian public service.

3. To ascertain the effect of payroll fraud on the development of Nigerian frugality.

4. To identify the challenges of motorized account information system in Nigerian public service.