CHAPTER
ONE
1.0
INTRODUCTION
1.1
BACKGROUND OF
STUDY
In this present world,
individual, business men, firms and government have seen the effects of
computer in the area of recording and safe keeping of information,.
However, this computer cannot
function unless the day-to-day business activities are well documented and fed
into it properly.
Every business set up has
different levels of management and each of these levels of management needs
information to enable them make decision on how the objective of the organization
can be achieved likewise, the government.
In Nigeria before the advent of
computer, nearly all clerical works are, done by paper and pen. This gives rise
to
® Mismanagement of stationeries.
® Errors and omissions in accounting enterprises
® Monotonous work and tiredness and other,
associated clerical problems. But since the introduction of computer, problems
are minimized. Therefore, the use of computer in recording accounting
information in this modern world cannot be over sighted. In the past,
recording, filing and safekeeping of information was known as
“routine clerical work”
but with the
advent of sophisticated,
electronic
business machines it is now known as “data processing”.
Today, no business can survive
without the use of computer especially, in recording accounting information.
1.2
STATEMENT OF THE PROBLEMS
The problems of computerized
accounting and computer are as follows: a. DATA/INFORMATION INPUT:
“Garbage in garbage
out” is a general phenomenon in computer. Electronic computer has no
self-judgment and as such devoid of human errors becauseit’s what you feed into
the computer (input) that it gives out (output). For example, if one
feeds in wrong data into the
computer, no matter how efficient the programming may be, wrong output will be
the outcome because the computer has been misled.
b. COMPUTER LANGUAGE:
Computer has its
own language and all data are programmed and written in this special language.
Therefore, it required a lot of training without which computer will not make
any meaning to the users.
c. ENVIRONMENTAL CONDITIONS:
Computer does not
function effectively in a hot environment, for this reason it requires huge
amount in installing air-conditions to enhance efficiency.
d. COST:
Small businesses
cannot afford computer because it is costly to buy and maintain which
constitutes a bottleneck in getting correct information and as such, the small
businesses cannot thrive in the present of the big ones.
e.
AWARENESS:
Some individuals,
business men, firms, and government are not fully aware or do not know about
the importance, advantages, disadvantages, and in-depth problems/prospects
study of the use of computer in keeping accounting records and information.
1.3
OBJECTIVES OF THE STUDY
This
research work on “The use of computer in recording accounting information,
problems and prospects” is to investigate or require for the following:
a.
To make known the
brief history of computer, understand some important components of the
computer, advantages, disadvantages, and importance to users that is
individuals, business men, firms, and government as a part of awareness on
computerized accounting.
b.
To make known to
small scale businesses affordability of computer in that the cost of different
types of computers that can help in recording
accounting
information and transactions are made known to them so
that
they could strive in the presence of the big businesses.
c.
To make known users
of computer in recording accounting information to know how to keep computer
running in a perfect condition, the environment it’s to be kept in should be
conducive and cool for effective and efficient performance of the computer
system.
d.
To make known to
users of computer in recording accounting information to understand that there
are languages that computers understand and use, so therefore they should go
for training in this languages to enable them communicate perfectly with the
computers.
e.
To make known to
the users of computer in recording accounting information to make sure that the
data/information we want to input into the computer is correct, valid,
trustworthy, and accurate so that when we need back those information, we won’t
get something else from what we are looking for.
1.4
RESEARCH QUESTIONS
The following are some of the questions the
researcher would like to find
answer to in order for him to carry out the
project effectively:
a.
What made
individuals, firms and government adopt computer system?
b.
What has been the
effect of the use of computer on old and new staff?
c.
‘‘Routine clerical
work” and “Data processing” which is more economical?
d.
What improvement
has computer made to the general accounting system in the firm and country?
e.
What are the
problems that generate from the use of computer?
f.
What are needed to
make computer use effective?
g.
What effect has the use of computer in the
labourmarket?
h.
In modern
accounting, can computer be left out in recording information?
1.5
RESEARCH HYPOTHESIS
The following hypothesis shall be treated in the coursed
of carrying out this
research work:
1.
HO: There is no significant relationship between
the electronic data processing approach and the manual system approach.
Hi: There is significant relationship between the
electronic data processing approach and the manual system approach.
2.
HO: Computer has no positive effect in recording
accounting information.
Hi: Computer has positive effect in recording
accounting information.
3.
HO: Information from the computer is not always correct,
reliable, and accurate.
Hi: Information from
the computer is always correct, reliable, and accurate.
4.
HO: Not all employees have access to programmed data.
Hi: All employees
have access to programmed data.
5.
HO: The use of compute has not cause unemployment.
Hi: The use of compute has cause unemployment
1.6
SIGNIFICANCE OF THE STUDY
The
significance of this study cannot be over-emphasis because of the nature of
modern day organizations. It is embarked on to poultry the importance of
computer of an organization with peculiar reference to modern accounting
system. These importances are stated down below:
i.
The importance of
this study is to make the accountants and the auditors realize that computer
should not see as an enemy but as an aid to them and their business functions.
ii.
This study is to
help remove the in concept concealed by the junior workers that computer
introduction will lead to retrenchment of workers which is a fallacy because
without human being, computer cannot work or operate.
iii.
This research work
will help disclose the benefits of computerized accounting system with the
understanding that if the third world
countries
like Nigeria can undertake this system, they can compete
with
the advanced countries.
iv.
This will also help
see accuracy and efficiency of work carried out as well as increased
productivity.
v.
This research work
will also help other renders and researchers to widen their scope of knowledge
academically, occupationally, socially and economically as a base for other
research work.
1.7
SCOPE,
LIMITATIONS, AND DELIMITATIONS OF STUDY
1.7.1
SCOPE OF THE
STUDY
This project is
designed to cover the use of computer in recording accounting information by
individuals, firms and government. But generally, business organizations were
concentrated upon with a case study of Bendel feeds and flourmill, Edo state.
However, particular attentions were to the following areas.
i.
Application and use of computer in financial
accounting.
ii.
The use of
electronic computer in management decision making.
iii.
The advantages
derived in the use of computer.
1.7.2
LIMITATIONS OF
THE STUDY
It is the
researcher’s desire to carry out an elaborate research work on the selected
topic for accuracy, reliability and efficiency. Also as an indispensable data
base for interested person or groups of persons. But the following difficulties
brought limitation to be:
I.
LACKS OF
COOPERATION FROM THE RESPONDENTS: The reluctance of the officers of the
organization involved to attend to the researcher
limited
the researcher in getting full details.
ii.
FINANCE: Inadequate
finance was a core problem for the researcher and this adversely delayed the
progress of the work.
iii.
SECRECY:
Some information needed by the researcher is tagged
“Confidential” and this limited him from getting
the information.
iv.
TIME:The time
available to complete and submit this research work is too short; as such the
researcher is limited to elaborate research.
1.7.3
DELIMITATION
The research work
on the use of computer in recording accounting information would have cover the
importance it has contributed to individuals, firms and government but, due to
time availability, finance, strenuous academicals, works all these sectors
mentioned were not reached, therefore, the researcher is limited to only
business organization [firms] with a case study of Bendel feeds and flour mill,
Ewu, Benin city.
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