THE IMPACT OF COMPUTER TECHNOLOGY ON ACCOUNTING SYSTEM AND ITS EFFECT ON EMPLOYMENT
TO THE STUDY
Accounting is the art of recording,
classifying and summarizing in a significant manner and in terms of money,
transactions and events which are, in part at least, of financial character,
and interpreting the results thereof (Conn, 1978). Accounting can also be
referred to as an information system that measures, processes and communicates
financial information about an economic entity (Wikipedia, 2013). Advancements
in computer technology have dramatically improved accounting systems and
transformed economic life. Computers and other digital technologies have
increased office productivity facilitating the rapid exchange of documents,
research, collaboration with far-flung partners and the collection and analysis
of data. Computer technology gave all sorts of individual economic actors the
new valuable tools for identifying and pursuing economic and business opportunities
(Ballada and Ballada, 2011).
Computer Technology deals with the
application of computers and other telecommunications equipment to store,
retrieve, transmit and manipulate data. This may also be described as anything
that renders data, information, or perceived knowledge in any visual format
through any multimedia distribution mechanism. Applying computer technology in
the context of business, it is designed to help management in their stewardship
function, support management in their day-to-day operations and decision
making. In 1880, machines where invented to help in the accounting system. As
year years passed by, advancements on information technology also transformed
accounting systems and its processes. There were many developments in the
Accounting System. This is designed to help in the management and control of
activities related to the firms’ economic and financial area. Accounting system
is essential for majority of the business entities. The advancements of
technology have lead in the creation of the computerized accounting system
which is commonly adopted by business entities at present. This has created a
competitive market. Thus, entities need to improve their systems in order to
match their information needs for better decision making.
the advent of computer-based accounting system, accountants have to cope with
the resulting complexity of the flow of information through the accounting
systems. Traditional accounting procedures did not accommodate the
sophisticated processing devices that came with the computer-based accounting
system. As the design of the computer based accounting system advanced from simple
clerical automation to complicated integrated information systems, the
accountant could no longer perform his duties around the computer but found it
necessary to develop procedures to cope with the new challenges. However, the
employment of accountants who does not consider further training on
computer-based accounting is threatened. Furthermore, the traditional accountant
was not trained in the special languages and devices used in the computer based
With the introduction of computer to many business
applications, those business areas that involve repeated tasks which are often
monotonous and fallible to human errors (cash, inventory control, payroll and
etc) are increasingly being simplified accurately by combining the cost,
effectiveness, simplicity of use, efficiency, reliability and accuracy of the
computer to obtain, analyze and interpret data information for efficient
business decisions. Nigerian business organizations being to grow in size,
business operations and processes become increasingly complex, hence computers
are being rapidly introduced to cope with the overwhelming demands of business
and growth (Dandago and Rufai, 2013). Though the introduction of computer to
many facets of business operations is a welcome idea, its use is further
implicated on accounting system and as such organizations need to strike a
balance between accounting areas to be manually operated so as to control or
limit the menance associated with unemployment.
OF THE PROBLEM
procedures are naturally complex and are becoming increasingly more
sophisticated and so it becomes more necessary wanting to know how computer
technology has helped in resolving this complexity and also to get to know of
it holds any greater promise for the future and employment in the field of
accounting. There is the need also to
know if it hold any risk of aiding perpetrators of frauds in order to weigh its
risks against benefit.
accounting duties are done on the computer today and this recent development in
the practice of accounting has led to situations whereby organizations hire the
services of a computer expert for audit purposes. The researcher is examining if the knowledge
of computer has displaced accountant with a computer scientist thereby creating
an employment deficit.
In addition to these problems, the electronic
accounting systems are usually designed by systems analyst and programmers who
are in most cases non accounts. This makes
the accountant a stranger to the system he is to audit, unlike in a manual
system. Furthermore, the accounting information processing procedures are
stated in computer programs which are written in special computer languages and
stored on machine-sensible medium.
1.3 OBJECTIVES OF THE STUDY
following are the objectives of this study:
examine the impact of computer technology on accounting system.
examine the impact of computer technology on employment in the field of
identify the factors limiting the use of computer technology in the field of
1.4 RESEARCH QUESTIONS
is the impact of computer technology on accounting system?
is the impact of computer technology on employment in the field of accounting?
are the factors limiting the use of computer technology in the field of
1.6 SIGNIFICANCE OF THE STUDY
following are the significance of this study:
outcome of this study will educate the stakeholders in the field of accounting
on how accountants can key into the advent of computer technology for
effectiveness in accounting.
2. This research will also serve as a
resource base to other scholars and researchers interested in carrying out
further research in this field subsequently, if applied will go to an extent to
provide new explanation to the topic
1.7 SCOPE/LIMITATIONS OF THE STUDY
study on the impact of computer technology on accounting system and its effect
on employment will cover the effectiveness of computer technology in the field
of accounting and how it influences employment opportunity.
LIMITATION OF STUDY
Financial constraint- Insufficient fund tends to impede the
efficiency of the researcher in sourcing for the relevant materials, literature
or information and in the process of data collection (internet, questionnaire
Time constraint- The researcher will
simultaneously engage in this study with other academic work. This consequently
will cut down on the time devoted for the research work.
Conn, N. (1978), “Objectives of Financial Reporting by
Business Enterprises”, Statement of Financial Accounting Concepts no. 1, par 9.
and Ballada S., (2011),
“Basic Accounting”, DomDane Publishing, pp. 20, 88-90.
(2013) Information Technology, http://en.wikipedia.org /wiki/Information_technology.
V. Shafeiepour, M. Aslani and E. Barvayeh, (2011), “The Impact of Information Technology
(IT) on Modern Accounting”, Procedia - Social and Behavioral Sciences, vol. 28,
I. and Rufai A. S.,(2013) “Information Technology and Accounting
Information System in the Nigerian Banking Industry”, Asian Economic and
Financial Review, vol. 4, no. 5, June, pp.655-670.