THE ROLE AND THE PROBLEM OF ELECTRONIC DATA PROCESSING IN ACCOUNTING SYSTEM IN NIGERIA

CHAPTER ONE

1.1  Background To The Study

Accounting system is a system designed to record accounting transaction involving a business or event taking into cognizance the policies of the firm. According to Hartzell (2006) accounting system is the process of organizing, summarizing, recording and reporting financial transactions with the view of providing financial information to management to facilitate policy decisions, budgeting, preparing financial report and other financial approvals. Accounting system is viewed as formal systems which identify measure, accumulate, analyze, prepare, interpret and communicate accounting information of a business organization or institution. Ama (2004). Accounting system is regulated by the organizations policies, rules, regulations, methods, procedures and techniques. Accounting systems constitute the mechanism adopted for gathering and communicating the financial performance and position of the organization. The two major types of Accounting System include Manual Accounting system and Computerized Accounting System. The manual system involves the use of hand for the posting of accounting information into the various books of accounts of the firm. The computerized system involves the use of specialized machines as computer in gathering and processing of accounting information. It is also referred to as Electronic Data Processing (EDP) Accounting System. The applications of computer in accounting system involves the use of Word processor, Data base and Spread sheet .The research seek to investigate the role and the problem of electronic data processing in accounting system in Nigeria.

1.2 Statement of the Problem

The accounting system is besetted by some deficiencies. For example the computerized accounting system is exposed to the risk of data theft and loss either as result of power failure or from hackers. It is also exposed to fraud by those who can secretly have access to the system. Customer information could be tampered with in the process thereby leading to security breach. The management could be deterred in some cases where there is loss of data in executing legitimate projects and decision making. According to Vermaat and Shelly (2011) computers related problems include   health risks, the violation of privacy, public safety, the impact on the labor force, and the impact on the environment. Therefore the problem confronting the research is to appraise the problem of electronic data processing in accounting system in Nigeria

1.2  Objectives of the Study

To determine role and the problem of electronic data processing in accounting system in Nigeria

1.3  Research Questions

What is electronic data processing in accounting system?

What is The role and the problem of electronic data processing in accounting system in Nigeria

1.4  Significance of the Study

The study shall appraise the role and the problem of electronic data processing in accounting system in Nigeria

Accounting system is a system designed to record accounting transaction involving a business or event taking into cognizance the policies of the firm. According to Hartzell (2006) accounting system is the process of organizing, summarizing, recording and reporting financial transactions with the view of providing financial information to management to facilitate policy decisions, budgeting, preparing financial report and other financial approvals.. Ama (2004). Accounting system is regulated by the organizations policies, rules, regulations, methods, procedures and techniques. The computerized system involves the use of specialized machines as computer in gathering and processing of accounting information. It is also referred to as Electronic Data Processing (EDP) Accounting System. The applications of computer in accounting system involves the use of Word processor, Data base and Spread sheet

1.5  Research Hypothesis

Ho The role of electronic data processing in accounting system in Nigeria is not effective

Hi The role of electronic data processing in accounting system in Nigeria is effective

Ho The problem of   electronic data processing in accounting system in Nigeria is low

Hi  The problem of electronic data processing in accounting system in Nigeria is high

1.6  Scope of the Study

The study focuses on the appraisal of the role and problem of electronic data processing in accounting system in Nigeria

1.7  Limitations of the Study

The study was confronted by some constraints including logistic and      geographical factor.

1.9 Definition of Terms

ACCOUNTING SYSTEM DEFINED

Accounting system is a system designed to record accounting transaction involving a business or event taking into cognizance the policies of the firm. According to Hartzell (2006) accounting system is the process of organizing, summarizing, recording and reporting financial transactions with the view of providing financial information to management to facilitate policy decisions, budgeting, preparing financial report and other financial approvals. Accounting system is viewed as a formal system which identifies measure, accumulate, analyze, prepare, interpret and communicate accounting information of a business organization or institution.

Ama (2004). Accounting system is regulated by the organizations policies, rules, regulations, methods, procedures and techniques.

Accounting systems constitute the mechanism adopted for gathering and communicating the financial performance and position of the organization.