THE IMPACT OF INFORMATION AND COMMUNICATION TECHNOLOGY ON ACCOUNTING PROFESSION IN NIGEIRA

CHAPTER ONE

1.0 INTRODUCTION

1.1 GENERAL DESCRIPTION OF THE STUDY

Information has been a vital tool in a decision making process. Since the draw of civilization, people have acquired information to aid them in their personal battle to survive as they attempt to manage their businesses.

The increase in complexity of the society especially, as it is manifested in social, political and economic institutions has necessitated to more, man’s quest for more relevant information on a more regular basis. The processing of facts can be traced back to thousand years ago.

Every financial manager has been concerned with the processing of data about their business operation so as to provide the most accurate and timely information to management. In order to provide this accurate and timely information to management, financial manager continuously sought more improved means of processing data. With the advent to industrial revolution, the need for faster, more efficient and also other methods of processing data became apparent. In banking industries, the use of plastic cards, automated teller machines (ATMs) and electronic funds transfer at point – of – sale (EFTPoS). Internet banking and bill paying are further transforming the way we use money and the use of word processors, spreadsheets, and data bases in businesses.

The use of computer is becoming diverse and wide spread in all sectors of our society. At banks computers are used for one purpose or the other such as:

Information and communication technology (ICT) which is synonymous with computerization is that technology which aids activities such as creation, storage, processing and communication of information.

Accounting is an art of recording, identifying, classifying, summarizing, in a systematic manner and in terms of money transactions and events which are in part list of financial character and communicating the results to the users.

This project is therefore to x–ray or highlight the impact of information and communication technology on accounting profession in Nigeria.

1.2 HISTORY OF THE CASE STUDY/ORGANIZATION

According to www. Fidelity bank plc. Com, fidelity Bank plc began operations in 1998 as a merchant bank. In 1991, it was converted to commercial bank and then became a universal bank in February 2001. The current enlarged fidelity bank as a result of the merger with former FSB International Bank Plc. and Manny Bank Plc. (under the Fidelity brand name) in December 2005. Fidelity Bank today is ranked amongst the top ten (10) in the Nigerian Banking industry, with a branch in Nekede, Oweeri.

Fidelity Bank Plc. Nekede, Owerri started its operation in 2008. Over the years, the bank has been reputed for integrity and professionalism. It is also respected for quality and stability of its management. Their staffs are also respected in the area and its environs for the quality of training they receive on the job, as well as in good business schools both in Nigeria and overseas. The management is particular about the quality of people that join the system.

Fidelity Bank Plc. Nekede, Owerri operates the following accounts: Savings account, current account, fixed deposit account etc. They also render the following services money gram, e-banking, automated teller machine (ATM) services and others.

The organizational structure of fidelity Bank Plc Nekede, reveals the following structure: Branch manager, Secretary, Accounts department, Human Resource department, marketing department, and operation department.

The management is focused on building and maintaining a virile and well-respected brand that caters to the needs of its growing corporate, commercial and consumer banking chentele. They also enjoy the respect and partnership of a network off-shore constitution with which it has correspondent banking, conformation lines, credit and other relationships

1.3 PROBLEM ANALYSIS

The key issue of this research is to know the extent to which information and communication technology (ICT) affects accounting profession either positively or negatively.

Accounting deals with source documents. Over the years, the challenge of the accounting profession has always centered on how to provide time and accurate information to meet the needs of the end-users of accounting information.

As organization grows in size and volume in its transactions, the challenges of storage, retrieval and communication of accounting information become so manifest; it becomes self-evident that the manual method of accounting information system cannot address the aforementioned problems. The issue is to find out whether or not the introduction of information and communication technology offers the more credible alternative method for effective accounting profession.

The purpose of this study is to explore how information and communication technology (ICT) have changed many aspects of business and accounting profession and as a result, offer new and exciting research opportunities to accounting professionals and academics.

The purpose of this study is as follows;

1.5 RELEVANT RESEARCH QUESTIONS

The research questions considered in this work are enumerated below;

1.6 STATEMENT OF HYPOTHESIS

A hypothesis is a statement about the value of a population parameter. Hypothesis testing involves the use of sample evidence and probability theory to determine whether the hypothesis is a reasonable statement and should not be rejected or is unreasonable and should be rejected.

From the above statement, and within the limit of this study, the null hypothesis will be denoted with Ho, while the alternative hypothesis will be denoted with H₁ and will read as follows:

H₁: Information and communication technology offers more credible alternative method for effective accounting profession in Nigeria.

1.7 DELIMITATION (SCOPE) OF THE STUDY

This research work will be restricted to Fidelity Bank Plc. Nekede, Owerri which is licensed to operate with the central Bank of Nigeria (CBN) and operating according to the provisions of the central Bank of Nigeria (CBN).

During the collection of data from the organization some problems were encountered which include lack of fund, limited time and the availability of data hence, the need for further studies.

1.8 ASSUMPTIONS

The assumption of this project, the impact of information and communication technology on accounting profession in Nigeria is as follows;

1.9 SIGNIFICANCE OF THE STUDY

This research is important because it would be beneficial to all organization that is computerized in their activities. This is because information and communication technology is enhancing accounting processes and procedures. Through the use of software, hardware, data bases and network systems, financial information can be captured, processed and transmitted at the touch of a button. Powerful analytical software features exist today that provide management accountants with capabilities to perform data analysis, forecasting, trend analysis and other management accounting function. Information and communication technology has also opened possibilities for leading. Databases provide easier and effort than the traditional methods that molted floppy through mousse paper documents.

Information and communication technology is also providing the tools that are revolutionizing the role of financial professional from that of information recorders and processors to businesses strategies – making them much more critical to the success of an enterprise. The changes started to supplant the mainframe computer.

1.10 DEFINITIONS OF UNFAMILIAR TERMS/CONCEPTS

In order to help the reader or user of this project to understand it in details, certain related terms have been defined; a number of these related terms are as follows:

- All activities related to the preparation of financial statements and other managerial reports.
- Non routine transactions such as repayment of bank loans.
- Adjusting entries for month – end or year – end closings.
- Reporting of processed financial information to various users.
- General ledger
- Accounting administration
1. PURPOSE OF THE STUDY
1. To discover whether ICT is now been employed by case study organization.
2. To evaluate the impact of ICT on accounting profession.
3. To know whether or not the introduction of ICT offers the more credible alternative method for effective accounting profession.
- To what extent have the information and communication technology been employed in the organization?
- Is there any impact of information and communication technology on accounting profession?
- Does the introduction of information and communication technology offer more credible alternative method for effective accounting profession?
1. Ho: Information and communication technology has not significantly been employed in the accounting profession in Nigeria.
2. H₁: Information and communication technology has significantly been employed in the accounting profession in Nigeria.
3. Ho: Information and communication technology has no impact on accounting profession in Nigeria
4. H₁: Information and communication technology has impact on accounting profession in Nigeria.
5. Ho: Information and communication technology does not after more credible alternative method for effective accounting profession in Nigeria.
- It is assumed that the organization organizes seminar on ICT to their staffs to enable them perform their work effectively.
- It is assumed that all the staff of the organization is computer literate.
- DATA: According to Iloh and Nwobodo (2009:2), Data are facts, events, transactions which have been collected, recorded but are yet to be processed. Data are facts or raw materials.
- INFORMATION: According to Iloh and Nwobodo (2009:3) information is data that has been processed in such a way as to be meaningful to the person who receives it. In a business, information is produced from raw data to enable management to plan and control.
- SYSTEM: According to Ani, Olofin and Chukwuemeka (2005:11), A system is described as the detailed plan or a set of elevenths that work together with available resources to accomplish a given task.
- OFFICE AUTOMATION: According to Iloh and Nwobodo (2009:109), Office automation means the extensive use of computers and other office equipment of modern technologies including formal and informal electronic system in all activities of the office.
- DATABASE: According to Iloh and Nwobodo (2009:83) A database is defined as a file of data structured in such a way that it may serve a number of applications without its structure being dictated by anyone of those applications, the concept being that rather than being that programs are written around the database rather than files being structured to meet the needs specific programs.
- PROGRAM: According to Ani, Olofin and Chukwuemeka (2005:67), A program is defined as a set of instruction that tells a computer what to do. It can as well be defined as the activity involved in creating a program.
- SOFTWARE: According to Ani, Olofin and Chukwuemeka (2005:89), software is defined as a set of logical instructions capable of solving a given problem and therefore a communication link between manufacturing (the user) and the computer machine.
- TRANSLATOR: According to Ani Olofin and Chukwuemeka (2005:95), A translator is a program whose job is to translate what manufacturing has written in any of the programming languages into the form the machine can understand them (machine code) and act accordingly.
- COMPILERS: According to Ani, Olofin and Chukwuemeka (2005:87), compliers are a program that translates the high-level languages into the machine language. It reads the source program and generates machine code (object code) and saves it in a file.
- ELECTRONIC MAIL: (e-mail): According to Iloh and Nwobodo (2009:118), Electronic mail (E-mail) is the use of a computer network that allows users to send, store and receive message using terminals and storage devices.
- TELEX: According to Iloh and Nwobodo (2009:120) Telex is a service which enables users to transit and receive printed message over a telephone line.
- INFORMATION SYSTEM: According to Iloh and Nwobodo (2009:7), information system is defined as the set of interconnected procedures, the purpose of which is to provide managers at all levels and in all functions of an organization with the information necessary to enable them make timely and effective decisions.
- MANAGEMENT INFORMATION SYSTEM (MIS): According to Iloh and Nwobodo (2009:13), management information system (MIS) is defined as a system to convert data from internal and external sources into information and to communicate at all levels in all functions to enable them to make timely and effective decisions for planning, directing and controlling the activities, for which they are responsible.

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