EFFECT OF COMPUTER ON THE ACCOUNTING PROFESSION

EFFECT OF COMPUTER ON THE ACCOUNTING PROFESSION

(A CASE STUDY OF ASABA ALUMINIUM COMPANY DELTA STATE)

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ABSTRACT

 

          This study deals with the effect of the computer to the accountant.  It is carried out to the investigate the various way in which computer affects the accountant as processional.

Some hypothesis were formulated subject to verification.

These hypothesis are

  1. Computers does not effect on the accounting profession.
  2. Computers does not perform task with maximum speed and accuracy that will make the job of the job of the account staff a lot easier
  3. Computer is not an aid to the accountant

The basic ways the computer has being of benefit to the accountant and types and generations of computer were extensively discussed.  The problems that are usually encounted as a result of the introduction of computer in accounting and other field were also lighted.

Structurally, this chapter one deals with the introduction of research work.  Chapter two deals with the review of related literature drawn from the textbooks, articles in newspapers and Journals.  Chapter three deals with the statement of the methodology used  for the research study.  Chapter four deals with data presentation, analysis and its subsequent interpretation.

From the research of the study, conclusions were drawn and recommendations were made.  These were done in chapter five.  Due to the extensive usage of technical terms, there is the need for the definition of these terms.

 

 

 

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

CHAPTER ONE

  • Introduction

1.1     Manual data processing system

  • State of problem
  • Objective of the study
  • Significance of the study
  • Delimitation of the study
  • Scope limitation of the study
  • Research Questions
  • Research hypothesis
  • Definition of terms

 

CHAPTER TWO

  • Review of related literature

2.1     a brief history of computer

  • Definition of computer
  • Types of computer
  • Components of computer system
  • Varieties of computers
  • Functions /uses of computers
  • Computer programs / programming language
  • Files and files processing
  • System analysis and design
  • How to match computers and accounting software
  • Computer crime
  • What is computer fraud

 

CHAPTER THREE

  • Methodology of the study

3.1     Method of data collection

  • Population and sample size
  • Sample design
  • Method of data analysis and interpretation.

 

CHAPTER FOUR

  • Data presentation and analysis

4.1     Presentation of data and analysis

  • Test of Hypothesis

 

CHAPTER FIVE

  • Summary of findings, recommendation and conclusion

5.1     Summary of findings

  • Recommendation
  • Conclusion

APPENDIX

QUESTIONNAIRE

BIBLIOGRAPHY

 

CHAPTER ONE

 

INTRODUCTION

          There has been a lot of observations and comments on the effect of computer as it relates to the accounting profession in Nigeria.

According to professor Longe “Computers are being used to assist in the management of major areas of the computers are under utilized and in several areas the uses are yet rudimentary”.

In the accounting yet rudimentary”  story is the same.  It has, therefore becomes necessary to know the effect of computer on the accounting profession, to determine whether computer does have effect on the accounting professional and perform task with maximum speed and accuracy which will make the job of the account staff a lot easier or they are under utilized, despite the immense benefits derivable from their optimum utilization.

With 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.

Furthermore, the traditional accountant was  not trained in the special languages and devices used in the computer based system.  Accordingly, a chartered accountant and professional organizations to educate the accountant to functions effecting in a computer based accounting system.  Therefore in the course of the study. Efforts will be made to establish  the effect of computer on the accounting profession.

Finally, I have the conviction that he efforts expended in this study will be a worthwhile investment.  This is further strengthened by the fact that this study will serve a springboard and basis for further studies on the relationship between the computer and the accounting profession and other related topics in the future.

 

  • MANUAL DATA PROCESSING SYSTEM

Manual data processing has existed as long as man has walked this planet.  It continuous to exist today in every organization and  is  major form of data processing for many small business firms.  The earliest methods of manual data processing included the use of fingers, stones and stick for counting and knots on a string, scratches on a rock or notches in a stick as record keeping devices.  The Babylonians wrote on clay tablets with a sharp stick, while the ancient Egyptians developed written records on papyrus using a sharp pointed reed a pen and organic dyes for ink.  The earliest form of manual calculating device was the Abacus.  The use of  pebbles or ords laid out on a lined or grooved board were early forms of the Abacus and were utilized for thousands of years in many civilizations.  The abacus in it present form originated in china and still a widely calculator.

Manual data processing techniques contributed ot progress over the centuries due to developments such as Arabic numerals, the decimal system, the manufacture of paper, the printing press, the slide rule and  double –entry book keeping to name a few.  Manual data processing systems of today employ tools and materials that have been used for several hundred years such as pencil, pens, rulers paper record keeping, forms, folders and filing cabinets.

More recent development which have been tools and materials such as multiple copy forms, carbon paper, accounting pegboards and notched cards.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The  information system of any organization can include manual data processing systems if information, requirement become more complex and the volume of data increases, mechanical data processing systems become more efficient and economical.  In manual data processing transactions can be recorded easily in a human-readable form and changes and correction to such systems can easily be made.  Manual  data processing is also quite in expensive at low volumes.

The major limitation of manufacture data processing include its inability to handle  large  volume of work and its reliance on many cumber-some and tedious methods. It is also more susceptible to error and slower them other data processing methods because it depends on human effort for most data processing operations.

 

  • STATEMENT OF PROBLEMS

Accounting procedures are naturally complex and are becoming increasingly more sophisticated and so it becomes more necessary wanting to know how computerization has helped in resolving this complexity and also to get to know of it holds any greater promise for the future 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 against benefit.  It also seeks to identify how the personnel conduct their activities in an

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