Abstract
This study’s objective is to evaluate the effects of information and communication technology on the accounting system using Access Bank PIc’s Ikeja branch in Lagos as a case study.
Introduction, significance, scope, limitations, explanation of the research problem, hypothesis, and definition of terms are all covered in the first chapter.
The second part covers literature study, which includes an explanation of various texts, previous research on ICT development, issues, the applicability of ICT to banking and accounting, as well as associated risks and challenges.
The third chapter is mostly concerned with research methodology, including data sources and data gathering methods, population descriptions, research designs, data collection, and scoring.
chapter one
Introduction
Any business, but notably those in the accounting profession, needs information and communication technology to survive. For a solution to these and other recognized challenges, the entire globe has now turned to technology. Information is processed using data systems. It is the result of any data that has been compiled into a form that is usable, comprehensible, and helpful to the report’s receiver. Within an organization, information is transferred through a process known as communication.Accounting, which is used in the business world to represent the transactions entered into by all different types of companies, is frequently referred to as the “language of business.” People involved in business consequently employ accounting concepts and phrases; we mention liabilities, inventory, assets, cost, expenses, capital, and profit, to name a few. The process of documenting, analyzing, classifying, summing up, and interpreting regular commercial transactions is known as accounting.
Among the first computer programs used for commerce were accounting applications. Their significance in the accounting process led to the data processing department in an organization—which is concerned with more than simply accounting—being initially in charge of accounting and financial management. As a result, organizations now use accounting software instead of just one kind. Information should be distributed to people and organizations outside the organization in reports that have been generated. Because of this, almost everyone involved in corporate management needs to have at least a basic understanding of accounting. These include managers, accountants, and other administrative and support employees.
Therefore, it goes without saying that in order to enhance ICT effectiveness, those who use communication and information technology (lCT) must be familiar with the accounting process.
HISTORICAL BACKGROUND OF ACCESS BANK PLC
Since its founding, Access Bank PIc has offered a wide range of products and services spanning investment banking, retail, and fund management to satisfy the public’s growing need for sophisticated banking services. Access Bank PIc was founded in March 1989 as the result of a partnership between some visionary and dynamic Nigerian businessmen.
The bank is run by a group of talented, adaptable, and goal-oriented individuals who have quickly established themselves as the nation’s most successful merchant bank. With a diversified group structure spanning the numerous sectors of the financial services industry, the bank has evolved over time to stand for innovation, service excellence, and professionalism.
With all of its branches successfully connected to one another and to the main office via the Very Small Aperture Terminal (VSAT), which improves online real-time capabilities, Access Bank Plc has made significant investments in information technology. For the banks’ thronging customer base across the nation, this has made banking simple.
It was granted a commercial banking license in July 1999 and subsequently a universal banking license, allowing it to expand the number of clients for its distinctive goods and services and take advantage of further market opportunities in other sectors of the Nigerian economy. After the board of directors passed a resolution in October 2001, the bank became a public limited company in June 2002, and in July of that same year, it held its initial public offering (IPO).The proceeds from the IPO added N3.58 billion to the bank’s capitalization, and by the middle of 2004, the fund of bank shareholders had increased to N0 billion. At that point, the regulators set a new minimum capital base of N25 billion. In order to increase its shareholders’ fund to N34.7 billion, the bank returned to the capital market and raised new funds totaling N22.4 billion. The Nigerian Stock Exchange lists the bank’s shares (NSE). Since making its entrance into the commercial banking industry, Access Bank Pic has aggressively expanded its branch network. It provides customers with a broad variety of products that span a wide range of the market, such as the Access Diamond Fund (lDF), Access valuable yield accounts (IVY), and Accesspremium saving account (IPSA) to mention but few.The bank is a partner of Mastercard and a direct agent for Western Union money transfers. As a socially conscious company, it has long upheld a corporate responsibility policy for the communities in which it operates and has had an impact on public health and education.
Statement of the problem
Information and communication technology (ICT) has had a significant impact on both the accounting system and the field. If a mechanized system is not implemented, particularly in the case of a business with a sizable multinational network, it will be difficult for management to achieve its goal of ensuring the accuracy, validity, and dependability of accounting records.
The issues of insufficient and incomplete records brought on by frauds and other irregularities that were not detected but would have improved appropriate planning and effective decision-making, as well as the mutual system’s inability to keep up with the organization’s expansion, are concerns (in a very large establishment).
Therefore, despite the aforementioned issues, the effects of information and communication technology will be studied in this study.
Therefore, this study’s examination of the importance of information and communication technology to the accounting profession in light of the aforementioned issues will be in-depth.
Purpose of the study
Since the majority of accounting entries now use software, the focus of this study is on the effectiveness and relevance of information and communication technology (lCT) on accounting systems. It seeks to investigate how information and communication technology (ICT) has altered various facets of accounting and financial reporting as well as the extent to which (ICT) has presented new and exciting opportunities to accounting professionals
Research question
The main research questions to be addressed in the course of the study are:-
- What is the relevance of ICT to accounting profession?
- Does ICT assist organization in decision making?
- How can organization use ICT to bring out efficiency and effectiveness?
- Is there any relationship between ICT and accounting profession?
- Can accounting profession survive without ICT?
- What are the I CT packages used in accounting
- Can any organization achieve its goal without ICT?
Research Hypotheses
Ho: ICT does not assist organization in decision making
Hi: ICT assists organization in decision making
Ho: There is no relationship between let and accounting profession
Hi: There is relationship between ICT and accounting profession
Ho: let does not influence effectiveness and efficiency within an organization.
HI: ICT influence effectiveness and efficiency within an organization.
Significance of the study
Information and communication technology IS important to the accounting field and should not be dismissed lightly. It has a significant advantage over the industry and the entire world. For the following reasons, it is crucial to examine how it will affect the accounting system:
to improve management evaluation of operations and performance through the use of accounting software on computers.
to evaluate the amount of organizational growth using the data gathered and computerized storage.
to determine whether let is relevant to organizational decision-making.
Scope and limitation of the study
The study’s exploration of the effects of information and communication technologies on an accounting system is its sole focus. The analysis’s time frame will be restricted by the information that is now accessible, which is limited by the availability of funding, transportation, time, secretarial barriers, and pertinent data.
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