THE IMPACT OF INFORMATION AND COMMUNICATION TECHNOLOGY ON ACCOUNTING PRACTICE IN NIGERIA A CASE STUDY OF PZ CUSSON ABA

ABSTRACT

The world has become a global village and information polished society. As a result, a relative level of information communication technology advancement has become vital factor in competitive advantage of nations in internationally political, social and economic realms. Accounting practice in Nigeria has over the years worked more advanced and government is not unaware of the correlation between economic growth and information development as much as it knows that the rural sector of the economy plays a very vital role for the balanced growth of the country

        So, being facilitators of economic growth, communication and information technology must also be implemented in a non discriminatory fashion particularly in accounting practices.

        Information communication technology deals with the creation, manipulation, storage and communication of information, chiefly telecommunication and electronics.

        The title of this research study is the impact of information communication technology on accounting practices in Nigeria. Information communication technology is just all forms of technology applied to processing, storage and transmitting of information through electronic devices

        As a way of ensuring logical understanding of this study the study is arranged in chapters up to chapter five. In chapter one, critical analysis was made to serve as a pathway into the study, purpose of the study, significance of the study, statement of problems, formulation of hypothesis, limitation of the study and definitions of terms end it.

        Chapter two (2) of this work is devoted to literature review, to support the theoretical framework of this study this includes the works of other individuals and corporate bodies.

        Chapter three (3) deals with the hypothesis of the study sampling techniques, data collection methods research design, and data analyses techniques.

        Chapter four (4) in chapter form, tables and graphs are used to present and analyze date

        Chapter five (5) encompasses the summary of findings, conclusion and recommendation.

TABLE OF CONTENTS

Title page  ————————————————-                       i                

Approval page ———————————————      ——-                ii

Dedication ———————————————————              iii

Acknowledgement ———————————————–               iv

List of tables and graphics ————————————–              v

Abstract ———————————————————–               viii

Table of contents ————————————————       x

CHAPTER ONE

1.0    Introduction —————————————-                       1

1.1    Statement of problems —————————-                      4

1.2    Purpose of the study ——————————                       4

1.3    Significance of the study ————————–                      5

1.4    Research questions ——————————–                      5

1.5    Formulation of hypothesis ————————                       6

1.6    Scope and limitations of the study ————-                        7

1.7    Definitions of terms——————————–                       9     

CHAPTER TWO

2.0    Literature review ———————————–       –               13

• The development of accounting practices ——-             14
  • The History of information communication technology— 16
  • The significance of information communication

technology —————————————————    19

• Information and communication technology in

developing countries ——————————————–       23

• Information communication technology in

Corporate organization —————————————–        25

• The nature and scope of accounting Practices ————-       27
  • The nature and scope of information and
  • communication technology ———————————-  32
  • Information and communication technology and
  • accounting practice in Nigeria ——————————-         35
  • Contribution of information and communication

         technology Generally —————————————- 38

Summary —————————————————                40

CHAPTER THREE

3.0    Research methodology ——————————–          41

3.1    Research design and methodology ——————         41

3.2    Population and sample size —————————         41

3.3    Nature and source of data —————————-         42

3.4    Data collection and method —————————-                43

3.5    Data Analysis and Techniques ————————-                44

CHAPTER FOUR

4.0    Presentation and analysis of data ———————                 46

4.1    Presentation and analysis of finding ——————                46

CHAPTER FIVE

• Summary of findings conclusion and recommendation —        56

5.1    Summary of findings —————————————— 56

• Conclusion —————————————————— 57
  • Recommendation ———————————————- 58

Bibliography —————————————————- 59

CHAPTER ONE

1.0   INTRODUCTION

        Information has been a vital tool in decision making process. Since the dawn of civilization, people have acquired information to aid them in their personal battle to survive as they attempt to manage their businesses. The increasing complexity of the society especially, as is manifested in social, political and economic institutions, has necessitated the more, man’s quest for more relevant information on a more regular basis. The processing of facts that can be traced back to thousand years ago.

        Every financial manager has been concerned with the processing of facts or data, about his businesses 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 of industrial revolution, the need for faster, more efficient and also other methods of processing data became apparent. To satisfy these needs, various types of automated devices were introduced into the business world. Of these, electric computer is the most efficient and foremost as well as the fastest, and mot sophisticated device built by man

        Charles Babbage, an English Mathematician, designed the first mechanical calculation machines that incorporated the concept of input, Processing, and output in its design. The machines were the difference and analytical engines.

        The difference engine was originally designed for working out tables of logarithm, it was based on the concept of difference of polynomials, the more complex machine, it was a general ‘purpose information processing machine, which has the input, output and processing units.

        The analytical engine closely resembled modern computer in the following ways.

(a)    One part of the machine known as the mill was dedicated to calculations (similar to the arithmetic unit of the modern computer central processing unit CPU)

(b)    It had a part that ensures that all operations were carried out in correct control unit of the modern (CPU)

(c)    It had a series of cogs that ensured that numbers were not presented to the mill until they were required for calculation this is equivalent to the storage unit in the present day computers.

(d)    Babbage’s engine had a part that could be identified as input and output. A computer may be defined as an electronic machine that accepts data as input, processes the data and information as output. It also stores data and information which can be retrieved in the future.

The use of computers is becoming diverse and wide-spread in all sectors of our society. At schools, homes hospitals, offices, banks etc. Computers are used for one purpose or the other. Information and communication technology (ICT) which is synonymous with computerization is that technology which aids activates 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 therefore is to x-ray or highlight the impact of this information communication technology on accounting practices in Nigeria.

1.1 STATEMENT OF PROBLEMS

        The key issue of this research is to know the extent to which information and communication technology (ICT) affects accounting practices 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 timely and accurate information to meet the needs of the end users of the accounting information.

        As the organization grows in size and volume in its transactions, the challenge of storage, retrieval and communication of accounting information becomes 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 practice.

1. PURPOSE OF THE STUDY

In prime purpose of this study is to carry out a research in order to know the impacts of information and communication technology on accounting practices in Nigeria.

1.3   SIGNIFICANCE OF THE STUDY

        This research is important because it would be beneficial to all organizations that are computerized in their activities. This is because accounting practices are done in every organization that is computerized and this organization will find it helpful to know whether information and communication technology affects their accounting practices positively or negatively.

1. RESEARCH QUESTIONS

The research questions considered in this work are enumerated below.

(a)    How do you assess the development of accounting information system within the 20^th country?

(b)    What are the contributions of information and communication technology in dealing with the accounting problems of storage, retrieval and communication of accounting information?

©     What are the impacts of information and communication technology on accounting practices in Nigeria?

(d)    In what ways has information and communication technology contributed to the generation of timely and accurate accounting in formation to the users?

(e)    In what ways has information and communication technology contributed in dealing with the problems of increasing volume of information?

(f)     How can accounting practitioners cope with the growth in information and communication technology as it affects accounting practices?

1. FORMULATION OF HYPOTHESIS

A hypothesis is simply a stated claim or assumption about a population or its characteristics which on the bases of experimental findings may be true and accepted or not true and rejected.

        In the light of the above, and within the limit of this study, the null hypothesis will be denoted with Ho, while the alternative hypothesis will be denoted with Hi and would read as follows.

(1)    HO: Information and communication technology has not greatly improved accounting practices in Nigeria.

HI:   Information and communication technology has greatly improved accounting practices in Nigeria.

(2)    H0: Information and communication Technology did not make the storage, retrieval and communication of accounting information timely and accurate.

HI: information and communication technology did make the storage, retrieval and communication of accounting information faster and efficient.

(3)    HO: Information and communication technology did not in any way increase the volume of accounting information that can be stored at any given time.

HI: Information and communication technology has greatly increased the volume of accounting information that can be stored at any given time.

1.6   SCOPE AND LIMITATIONS OF THE STUDY

THE SCOPE OF THE STUDY

        The scope of this project work will be limited only to Nigeria, that is, the research work will not be extended to other countries of the world.