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IMPORTANCE AND RELEVANCE OF COMPUTER IN ACCOUNTING SECTOR


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IMPORTANCE AND RELEVANCE OF COMPUTER IN ACCOUNTING SECTOR

PROJECT TOPICS AND MATERIALS ON IMPORTANCE AND RELEVANCE OF COMPUTER IN ACCOUNTING SECTOR


ABSTRACT

This study was conducted to know the importance and relevance of Computer in accounting sector. Three research question and three hypothesis guided this study.

A survey research design was employed for the study. 50 sample was taken. A structured questionnaire containing 50 items was used for the data collection, the three hypotheses were tested at 0.05 level of probability. The findings of the study revealed among other that:

1. That there is need for computer to be use in accounting system.

2. There is need for the scope to be increased in accounting sector.

3. There is need for accountant to used computer in an organisation.

4. The opinion of an accountant are similar on the computer to accounting will be considered from three perspective viz-Taxation, Auditing and General. The only area difference is the level of importance accorded each of these skills.

5. Financial constraints lack of credit facilities.

6. Reluctant of organisation to release facts and figures.

Base on the findings of the study, a number of recommendation were made.

CHAPTER ONE

1.1 INTRODUCTION

A computer can be defined as a set of machines which accept data from an input device perform arithmetical and logical operation in accordance, with or predefined programme and finally transfer the data being processed to an output or useful information device either for further processing or in final printed form, such as business document, schedules and management control reports. Computer has tremendous importance to the organisation and the society in general.

The technology development of computer which is known as technical characteristic can be traced to the first generation which is the first calculating machine invested by Blaise pascal in 1942. The development of computer continues from first generation to second generation with different features till the last generation of computer which contain sophisticated micro-electronic device are in use today by accounting firm, accounting development.

The importance of computer to accounting will be considered from three perspectives, taxation, auditing and general use. The uses of computer contain in tax office has ensured that tax returns are directed, edited and perfected.

Auditing, the importance of computer in auditing cannot be overstressed since it makes for the issue of appropriate internal control computer based – management information system. Thus, it is said that accounting, information system and computer auditing form the core of this chapter.

1.2 PURPOSE OF THE PROJECT

This project is aimed at acquitting the readers with a computer is all about. It is development and application to the accounting field.

1.3 BRIEF HISTORY OF COMPUTER DEVELOPMENT

There is no gain saying the fact that computer are tremendous importance to organisation and the society in general. The technological development of computer can be traced to the first generation computer which is first calculating machine invested by Blaise Pascal in 1942. These was improved upon by German named Giltgriedd Labrite and much Later by Frank Baldwin. This ;simply calculating machine has been so developed to the extent that it was capable of only calculating, but it can also recorded, summarize and print value by the end of the first world war, it was then known as the “Accounting Machine”.

The present age computer came inte existence when Dr. Herman Hollerith an American who invested the punched card system merged his company with other to form what is known today as International business Machine Corporation (IBM). This simply punched card system was soon replaced by the digital computer, which is the invention of Charles Babbage.

The first electro-mechanical digital computer known as Handware mark was therefore invested this soon gave way to the first electronic computer called ENIAC, designed by I.W. Manchly and J.P Ecwarty in collaboration with some school of electrical engineering after the development ENIAC, we have came into being in the 1940’s and the second in the 1950’s. the third generation of computer. The first generation of computer third generation of computer which were powerful, reliable used in the early 1960’s and 190’s. the forth generations of computer which contain sophisticated micro-electronic device are in the today.

1.4 IMPORTANCE OF COMPUTER IN RELATION TO ACCOUNTING

The importance if computer to accounting will be considered from three perspectives viz: Taxation, Auditing, and General.

TAXATION

The use of computer contains in tax offices as ensured that tax returns are processed with marketable use. At the computer centers, tax returns are directed, edited and perfed, after which they are coded and transferred on the punched card, which are then fed into computer for processing. The information obtained is then reported to the tax authority or tax administration.

AUDITING

The importance of computer in auditing cannot be overspread since it makes for the issue of appropriate internal control computer based on management information system and computer auditing from the core of the use of computer in amounting. Therefore, computer auditing should be target to accounting student to enable them to make use of computer to carry out compliance and substantive test.

GENERAL

In general, computer play an important role in areas such as clerical and authentical works of recording and processing investories, purchase and payroll bill. They are also important in keeping of statistical and analyzing economic information for government purpose.

1.5 HISTORICAL BACKGROUND OF THE CASE STUDY

First Bank of Nigeria Plc was formerly known as British Bank of West Africa was established in 1894. The West African currency Board (WACB) was established in 1912. The West African currency based was the product of the recommendation of the Emmott committee set up by then, then Secretary of state, the Rt Hon. Lewis Harcourt. This board retained the service of the BBWAA as the currency distribution agent. It set up four currency centers in Lagos (Nigeria), ACCra (Ghana) Freetown (Sierra Leone) and Barthrist, now Banjul (Freetown).

The bank carried out functions similar to those of the African Banking Corporation, its predecessor, in addition, British Bank of West African undertook the financing Agricultural activities in Nigeria as well as international trade financing.

However, BBWA was Scrutinized by nationalist and indigenous businessmen in Nigeria for its discrimination lending activities. this led to the clamor, which brings about indigenous participation in the bank and that was how the name was changed by the Federal Government as First Bank of Nigeria Plc. The banks headquarter which was situated in Broad street, Lagos will be used for the case study of the project.

First bank of Nigeria Plc has the highest number of Branches in Nigeria commercial banking system because it has over 300 branches in Nigeria in addition the bank has close to 35,000 direct and indirect workers both skilled and unskilled in Nigeria is one of the leading banks today in Nigeria. The entire banking operation are computerized, using online and batch operation.

1.6 LIMITATIONS

The general hardship encountered by every Nigeria today does not exclude the researchers this however impede the researchers in property executing the project as planned.

The time limit for the research work has not give way into all the aspect of controls in existence. Furthermore, there are set backs faced before retrieving necessary information for the accomplishment of this project work. The set backs are as follows:

– Some management staff was biased because of the fear of revealing the company’s the states of affairs.

– Also, some of the senior staff in the accounting department did so because of the fear of losing their jobs.

– Lastly, a sample size 25 cannot be said to be a true representation of workers of First Bank Plc, Board Street Lagos which has a staff strength of over 210.

Hence, the findings in this study cannot be vouch safe to be conclusive.

1.7 STATEMENT OF THE STUDY

All researchable topic have a problem, the research problem is the academic perplexing question post for resolution. The effectiveness or relevant of computer as a high implication on the accounting sector in an economy.

The choice topic entails the assessment of the general process involve in the preparation of computer and the implementation of it for accounting purposes in First Bank of Nigeria Plc.

THESE PROBLEMS ARE:

– Is there need for computer to be use in accounting system?

– Is there need for the scope of computer to be increased in the accounting sector?

– Is there need for accountant to use a computer in an organisation?

– Does computer provide a framework for responsibility accounting.

– Does the effectiveness of computer motivate the employees to improve their performance.

1.8 SCOPE OF DELIMITATION OF THE STUDY

This chapter to the area which this study intends to cover and also some of the set backs to the effective implementation of this project.

This period has been selected because computer has become a very relevant in organisation for its effectiveness and profitability. It also intends to use a case study of First Bank of Nigeria Plc.

These research work have been limited to this factors:

– Financial constraints.

– Reluctant of organisation to release facts and figures.

– Inadequate of relevant data.

– Time constraints

– Bureaucracy set back in an organization.

1.9 DEFINITION OF TERMS

COMPUTER: A computer can be defined as a set of machines which accepts data from an input device performs arithmetical and logical operation in accordance with a predefined programme and finally transfer the data been processed to an output or useful information device.

AUDITING: Auditing can be defined as independent examination of expression on the financial statement of an enterprise by an appointed auditor in pursuance of the appointment with statutory relevant obligation.

TAXATION: Is the process by which tax is been collected and assessed by the tax authority or tax administration.

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This study was conducted to know the importance and relevance of Computer in accounting sector. Three research question and three hypothesis guided this study. A survey research design was employed for the study. 50 sample was taken. A structured questionnaire containing 50 items was used for the data collection, the three hypotheses were tested at 0.05 level of probability. The findings of the study revealed among other that: 1. That there is need for computer to be use in accounting system. 2. There is need for the scope to be increased in accounting sector. 3. There is need for accountant to used computer in an organisation. 4. The opinion of an accountant are similar on the computer to accounting will be considered from three perspective viz-Taxation, Auditing and General. The only area difference is the level of importance accorded each of these skills... accounting project topics

IMPORTANCE AND RELEVANCE OF COMPUTER IN ACCOUNTING SECTOR

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