EVALUATION OF COMPUTER TECHNOLOGY IN THE ENHANCEMENT OF ACCOUNTING INFORMATION IN NIGERIA PUBLIC SECTOR
This research work is on “The Impact Of Computer Technology In The Enhancement Of Accounting Information In Nigeria Public Sector”. The study seeks to identify the extent to which the use of computer system can improved or promote accounting information in public sector over manual system. This research work was therefore carried out to identify the effects and importance of computer technology in the enhance of accounting information with reference to Enugu North Local Government Area, Enugu state. The research examined the fundamentals of the computer system which comprises of the hardwares and software’s of the computer system, it examined the fundamentals of accounting system and also the effects of computer system on accounting information system. The population size for the purpose of this study was 44 accounting staffs of Enugu North Local Government Area, Enugu State. The research design used was the survey design to collect data from 40 respondents. The data type used was sourced from primary and secondary data. The primary data was gotten through the use of questionnaires, oral interviews while the secondary data was gotten through journal and articles. The mode of data presentation was through the use of tables and percentages while the Z-test statistical tool was used to analyze the data and test the hypothesis. The findings revealed that computer technology has positive effect on accounting information and that if the computer is maintained properly and the right control put in place, they will be greater efficiency, effectiveness, faster preparation and distribution of accounting information for decision making.
TABLE OF CONTENTS
Title page ii
Approval page iii
Table of contents
1.0 Introduction 1
1.1 Background of study 1
1.2 Statement of the problem 6
1.3 Objectives of the study 7
1.4 Research Questions 8
1.5 Research Hypothesis 8
1.6 Significance of the study 9
1.7 Scope of the study 10
1.8 Limitation of the study 10
1.9 Definition of terms 11
Review of Related Literature
2.1 The fundamentals of computer system 15
2.1.1Hardware fundamentals 15
2.1.2Generation of computer hardware 15
2.1.3Classification of computers 19
2.1.4Software fundaments 29
2.2 Data/Information Processing Methods 39
2.2.1 Qualities of a Computer System 41
2.3 The Fundamentals Of An Accounting System 43
2.3.1The Common Sub-Systems of an Accounting
2.4 The Objectives Of Accounting 47
2.4.1 Users Of Accounting Information 48
2.4.2 Qualities And Value Of Accounting Information 50
2.5 The Benefits Of Computer Application In Accounting 52
2.5.1 Overview 52
2.5.2 Use Of Application Package 52
2.5.3 The Importance Of Computerized Accounting
System And How It Enhances Accounting Information 54
2.6 The Effects Of Computer On Accounting Information 58
Research Design And Methodology
3.1 Introduction 62
3.2 Research design 62
3.3 Sources of data collection 63
3.4 Area of study 63
3.5 Population of the study 64
3.6 Sample and sampling techniques 64
3.7 Data analysis and presentation 66
Data Presentation And Analysis
4.1 Data presentation 70
4.2 Test of Hypothessis 83
Summary Of Findings, Conclusion And Recommendations
5.1 Summary of findings 88
5.2 Conclusion 89
5.3 Recommendations 91
1.1 Background of the study
Every organization, private or public profit making or non-profit making, large or small scale, uses accounting information to make decision and information need vary according to the information each users requires. Initially, the appropriate information was prepare manually by the accountant and this has a number of drawbacks. But with the advent of computer technology, the accountants now has at his disposal a number of accounting information tools that help him in simplifying issues and providing quality information for the organization he render services to which will enable them make profitable decision, for the success or failure of an establishment depend on their management and use of accounting information. Accounting as defined by Onyekwelu (2010:4) as that systematic approach procedures and process adopted in gathering, recording of data relating to economic and financial transaction of any organization. (Profit or non-profit making), sorting, classifying. Summarizing, computing, analyzing, interpreting and communicating the outcome of these process to the users or interpret parties/stakeholders.
On the other hand, computer as defined by Ekemezie and Ngene (2004:26) as an electronic device that can accept input data, processes the data retrives the stored data and produces output in a desire format.
It can also been seen as a functional devices which have electronic, electrical and mechanical features respectively and have the capacity to perform the following functions solving and defining problems:
i. Accounting data instructions necessary for solving a defined problem.
ii. Process such instructions as at when due according to some prescribed guideline-albeit computer program.
iii. Store instruction/data for reference purpose through a recall or trivial mechanism and for futuristic purpose.
iv. Present a feedbacks to its users and or other interacting systems as a consequence of the process function.
v. May have the capacity for communication and resource sharing.
There is also considerable evidence of accounting being practiced in ancient times in Egypt, China, Greece and Rome. In England the “pipe Roll” the oldest surviving account record in the English language contains an annual description of rents fines and taxes due to the king of England, from 1130 to 1830.
When accounting information was being recorded in the middle ages, it sometimes simply took the form of a collection of invoice receipts which were given to an accountant to calculate the profit and loss of the business up to some point in time. The accountants of the middle ages would be someone who learnt how to convert financial transaction data into accounting information. Quite often, the owner of the business perform the function.
As business grew in size, so it became less common for the owner to personally maintain the accounting records and more usual for someone to be employed as an accounts clerk. As companies began to dominate the business environment managers became separated from owners. This led to a need for some monitoring of the managers. Auditing of financial records been account became the norm and this effectively established the accounting profession.
Computer where not let out in the development, there hav been Five (5) major generation or stages which include: the first generation which existed from 1940-1956, it relied on vacuum tubes to store and process information. The major change that was made to the second generation that existed from 1956-1963 was the replacement of vacuum tubes with transistory. The third generation which came into operation from 1964-1971 relied heavily on intergraded circuits. The fourth generation of computer extends from 1971 to present and it relied on micro-processor and the fifth generation which is from present and beyond relied on Artificial intelligence, with the advent of this set of computer processing speed have increased and mobile computing is made.
In view of the above fact, the researcher wishes to investigate on the impact of computer technology in the enhancement of accounting information in the Nigeria public sector and also provide useful recommendation to management.
1.2 Statement of the problem
Originally accounting was being handled manually although with its attendant problems which include: slow speed in accounting information, reporting and by extension slow business planning and decision making with the advent of computer technology, most organization began to computerized their accounting information so as to correct the defects of manual accounting system and also give them a competitive edge against competitor. Some serious question readily come to mind at this juncture how effective have reporting of financial/accounting information have been since the application of computers to accounting? Are the owners, managers of the business better and quickly informed about the financial situation of their business? Are the accountants or auditors who are the eyes of shareholder finding it easier to audit account due to its computerization? Are the control which normally would have worked perfectly in manual accounting system made possible when computer infringement on privacy and loss of files, is it higher in the manual accounting system or in the computerized accounting system? These are the pertinent questions which we shall provide answers for in the study.
1.3 Objectives of the study
The research work, the impact of computer technology in the enhancement of accounting information in the Nigerian public sectors has the following objectives by the researcher.
i. The study will try to evaluate the effects of computer technology in accounting information.
ii. To determine how computer technology lead to the enhancement of accounting information in the public sector.
iii. To evaluate the importance of computerized accounting over manual accounting information.
1.4 Research questions
i. What effects does computer technology has on accounting information?
ii. Does computer technology lead to the enhancement of accounting information in the public sector?
iii. Is computerized accounting more importance than the manual accounting information.
1.5 Statement of hypothesis
Ho: Computer technology does not have any effect on accounting information.
H1: Computer technology have effect on accounting information.
Ho: Computer technology leads to no enhancement of accounting information in the public sector.
H1: Computer technology leads to the enhancement of accounting information in the public sector.
Ho: Computerized accounting information is not more important than the manual accounting information.
Ho: Computerized accounting information is more important than the manual accounting information.
1.6 Significance of the study
The study will benefit managers of organization, accounting staff, auditors and financial consultants and intending researchers.
The study will be of great benefit to staff working in public sectors. In computerized accounting department because they will be able to appreciate the reasons for some controls being put in place by management.
Similarly, to accounting students, this study will benefit them by developing, educating and enlightening them on how beneficial the computer is to accounting information. To auditors and financial consultants this study will expose them to computerized accounting information system vulnerability and threats so that they can advise their clients better, to aid them in making profitable decision. The study will equally benefit intending researchers who have needs for conducting a research on a related/unrelated field.