The Effects Of Information And Communication Technology (Ict) On Accounting System
Abstract
The purpose of this research is to evaluate the effects of information and communication technology on accounting system using a case study of the Ikeja branch of Access Bank PIc in Lagos.
The introduction, purpose, significance, scope, limitations of the study, statement of the research problem, hypothesis, and definitions of terms comprise the first chapter.
The second chapter is devoted to the literature review, or the explication of various texts, past research on ICT development, problems, the relevance of ICT to Accounting and Banking, and the associated risks and difficulties of lCT.
The third chapter focuses on research methodology, including data sources and collection methods, population description, research design, data collection, and scoring.
The fourth chapter covers data presentation, analysis, and interpretation.
Chapter 5 concludes with a summary of findings, conclusion, recommendations, and suggestions for future research.
First Part
1.0 Introduction
Information and communication technology is crucial to the survival of any organization, and particularly the accounting profession. This is why the entire world has turned to technology as a solution to identified economic and other issues. Information entails a system for processing data. It is the output of any data that has been compiled, interpreted, understood, and rendered beneficial to the report’s recipient. Communication can be defined as the process of transmitting information within an organization.
Accounting is frequently referred to as the “language of business” because it is used to define the business transactions of all types of organizations. People associated with business use accounting terms and concepts; we speak of liabilities, inventory, assets, cost, expenses, capital, and profit, to name a few. Accounting is the process of recording, classifying, summing up, and analyzing daily business transactions.
Accounting software was among the first commercially used computer applications. Due to their significance in the accounting process, a company’s data processing department is initially responsible for accounting and financial management. However, data processing departments are concerned with more than accounting alone. As a consequence, accounting programs were utilized by the organization rather than a single type of program. The preparation of a report and dissemination of information to individuals and organizations outside the organization. For this reason, virtually everyone involved in business management must have a basic understanding of business accounting. Included in this category are accountants, administrators, and other clerical and support personnel.
Therefore, it goes without saying that users of communication and information technology (lCT) must have accounting process knowledge in order to maximize ICT effectiveness.
1.1 Historical Background Of Access Bank Plc
Access bank PIc was founded in March 1989 as a result of a partnership between some visionary and dynamic Nigerian businessmen, in order to provide innovative and customer-focused products and services that will meet the public’s growing demand for sophisticated banking services. Since its inception, the bank has offered a wide range of products and services, including investment banking, retail banking, and fund management.
The bank is managed by a team that is dynamic, adaptable, and result-oriented, and it has readily won national recognition as the most profitable merchant bank just five years after its inception. Over the years, the bank has grown to represent innovation, service excellence, and professionalization with a diversified group structure that spans all areas of the financial services industry. Access bank Plc has made significant investments in information technology, with all of its branches effectively linked to one another and to the head office via the Very Small Aperture Terminal (VSAT), which improves online real-time capabilities. This has simplified banking for banks’ numerous customers across the nation.
It obtained a commercial bank license in July 1999, and subsequently a universal banking license, allowing it to provide many more consumers with its distinctive products and services, as well as capitalize on other market opportunities in the Nigerian economy. As a result of a board resolution in October 2001, the bank became a public limited company in June 2002, followed by an Initial Public Offering (IPO) in July of the same year. The proceeds from the IPO increased the bank’s capitalization by N3.58 billion, and by mid-2004, the bank’s share holder fund had grown to N0 billion, before the regulators mandated a new minimum capital base of N25 billion. As a result, the bank returned to the capital market and raised new funds totaling N22,4 billion, increasing its shareholders’ equity to N34.7 billion. The bank’s stock is traded on the Nigerian stock exchange (NSE). Since its inception in the commercial banking industry, Access Bank Pic has pursued an aggressive program of branch network expansion. Access Diamond Fund (lDF), Access valuable yield accounts (IVY), and Access premium saving account (IPSA), to name a few, are just a few of the client products offered by the company. The bank is an authorized agent for Western Union and a partner of Mastercard. As a socially responsible organization, it has maintained a longstanding policy of corporate responsibility to the communities in which it operates and has had an impact in public health and education.
1.2 Statement Of Problems
The introduction of information and communication technology (lCT) has a significant impact on the accounting system and profession. The management objective of ensuring the accuracy, validity, and dependability of accounting records cannot be attained to the same degree without the use of a mechanized system, particularly in organizations with extensive multinational networks.
The problems of inadequate and incomplete records resulting from frauds and other irregularities that were not detected, which would have enhanced proper planning and effective decision making, coupled with the inability of a mutual system to keep up with the expansion of the organization (in a very large organization).
Consequently, regardless of the aforementioned issues, the effects of information and communication technology will be examined in this study.
In light of the aforementioned issues, the relevance of information and communication technology to the accounting profession will be comprehensively examined in this study.
1.3 Research Questions
The primary research topics to be addressed throughout the study are as follows:
What role do ICT play in the accounting profession?
Does technology facilitate organizational decision-making?
How can organizations use ICT to increase efficiency and productivity?
Exists a connection between ICT and the accounting profession?
Can accounting survive without technology?
What ICT applications are used in accounting?
Can any organization accomplish its objectives without ICT?
1.4 Scope And Limitation Of Study
Analysis of the effects of information and communication technology on an accounting system is the sole focus of this study. The period to be analyzed will be constrained by the information that is available, which is constrained by the availability of funds, transportation, time, and secretariat barriers, as well as relevant information.
1.5 Purpose Of Study
This study focuses primarily on the efficacy and relevance of information and communication technology (lCT) on the accounting system, given that the vast majority of accounting entries are now software-based. It seeks to investigate how information and communication technology (ICT) has altered many facets of accounting and financial reporting, as well as how (ICT) has provided accounting professionals with new and thrilling opportunities.
1.6 Significance Of Study
Information and communication technology IS an indispensable aspect of the accounting profession that must not be treated lightly. It has a significant advantage over the profession and the entire globe. Consequently, the evaluation of its consequences on the accounting system is necessary for the following reasons:
To improve management evaluation of operation and performance through the use of accounting software.
Using the information collected and stored on the computer, assess the level of organization expansion.
To evaluate the contribution of let to organizational decision-making.
iv. To evaluate the influence of outsourcing on auditing practice and other accounting services
To evaluate the impact of technological change on the personal qualities of accountants.
1. 7 Hypothesis
False: ICT does not help organizations make decisions
ICT facilitates organization’s decision making.
There is no connection between leasing and the accountancy profession.
Hi: There exists a connection between ICT and the accounting profession.
Let has no effect on the efficacy and efficiency of an organization.
ICT have an effect on the effectiveness and efficacy of an organization.
1.8 Definition Of Terms
The computer is an electronic device capable of solving complex problems swiftly and precisely.
These are the actual tangible components that make up a computer.
This is a global network of heterogeneous computer systems that share a common protocol.
This is a part assembly in which the parts or components are connected in an organized manner. This is a situation in which government agencies, parastatals, and administrations are linked online and accessible via the internet.
E-UNIVERSITIES: Universities in the United States and throughout the globe are now providing and instructing students via the internet.
This is a scenario in which commercial transactions are conducted over the internet. It is supported by dependable technology and sound business practices.
It refers to an international computer network comprised of multiple networks. It is an extensive network of computers linked by miles of cables.
It is a private network belonging to an organization that employs the internet protocol. It is only accessible to the organization’s members.
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