CHAPTER ONE

INTRODUCTION

1.   Background of the study

Every organization, private or public profit making or non-profit making, large or small scale, uses accounting information to make decision and information need vary according to the information each users requires. Initially, the appropriate information was prepare manually by the accountant and this has a number of drawbacks. But with the advent of computer technology, the accountants now has at his disposal a number of accounting information tools that help him in simplifying issues and providing quality information for the organization he render services to which will enable them make profitable decision, for the success or failure of an establishment depend on their management and use of accounting information. Accounting as defined by Onyekwelu (2010:4) as that systematic approach procedures and process adopted in gathering, recording of data relating to economic and financial transaction of any organization. (Profit or non-profit making), sorting, classifying. Summarizing, computing, analyzing, interpreting and communicating the outcome of these process to the users or interpret parties/stakeholders.

On the other hand, computer as defined by Ekemezie and Ngene (2004:26) as an electronic device that can accept input data, processes the data retrives the stored data and produces output in a desire format.

It can also been seen as a functional devices which have electronic, electrical and mechanical features respectively and have the capacity to perform the following functions solving and defining problems:

1.   Accounting data instructions necessary for solving a defined problem.

2.   Process such instructions as at when due according to some prescribed guideline-albeit computer program.

3.   Store instruction/data for reference purpose through a recall or trivial mechanism and for futuristic purpose.

4.   Present a feedbacks to its users and or other interacting systems as a consequence of the process function.

5.   May have the capacity for communication and resource sharing.

There is also considerable evidence of accounting being practiced in ancient times in Egypt, China, Greece and Rome. In England the “pipe Roll” the oldest surviving account record in the English language contains an annual description of rents fines and taxes due to the king of England, from 1130 to 1830.

When accounting information was being recorded in the middle ages, it sometimes simply took the form of a collection of invoice receipts which were given to an accountant to calculate the profit and loss of the business up to some point in time. The accountants of the middle ages would be someone who learnt how to convert financial transaction data into accounting information. Quite often, the owner of the business perform the function.

As business grew in size, so it became less common for  the owner to personally maintain the accounting records and more usual for someone to be employed as an accounts clerk. As companies began to dominate the business environment managers became separated from owners. This led to a need for some monitoring of the managers. Auditing of financial records been account became the norm and this effectively established the accounting profession.

Computer where not let out in the development, there hav been Five (5) major generation or stages which include: the first generation which existed from 1940-1956, it relied on vacuum tubes to store and process information. The major change that was made to the second generation that existed from 1956-1963 was the replacement of vacuum tubes with transistory. The third generation which came into operation from 1964-1971 relied heavily on intergraded circuits. The fourth generation of computer extends from 1971 to present and it relied on micro-processor and the fifth generation which is from present and beyond relied on Artificial intelligence, with the advent of this set of computer processing speed have increased and mobile computing is made.

In view of the above fact, the researcher wishes to investigate on the impact of computer technology in the enhancement of accounting information in the Nigeria public sector and also provide useful recommendation to management.

1.2    STATEMENT OF THE PROBLEM

The importance of personnel in the accounting section of an organization cannot be over emphasized especially when one remembers the facts that these personnel support the organization from its small scale to the large scale stage when it begins to introduce computers to many of its hitherto manual operations.

However, an organization has the obligation of profit making and as such promptness of information, accuracy, speed, cost effectiveness, becomes prime factors to the organizations.

The problem of this study is therefore to find out whether or not the introduction of computer technology to accounting systems of business operations has reduced the output of the accounting sections at A.G. Leventis PLC and Pak – Micro computer centre.

1.3    OBJECTIVES OF THE STUDY

The purpose of this research work is to find out and evaluate the implication of computer introduction to Accounting sections of business operation with particular reference to A.G. Leventis PLC and Pak – Micro International as some of the largest organizations in Nigeria today.

The study will also attempt to find out the efficiency and effectiveness of such application to overall management capabilities in decision making.

1.4    SIGNIFICANCE OF THE STUDY

This research work provides a clear understanding of one of the social implications of computer application on accounting system. The information obtained will be useful to management, consultants, about unions, professional, students, shareholders, investors, institute of higher learning, training managers, economist, the government and so on.

The study will also be significant to other organizations willing to computerize their accounting operations as well as to A.G. Leventis Plc and Pak – Micro computer centre.

1.5    SCOPE AND LIMITATION OF STUDY

For the purpose of this study, the impact of computer technology on accounting system will in scope be limited to A.G. Levenits and Pak – micro Computer. Both of them are of Enugu Branch. This is because of it’s many computerized application areas and therefore makes for better study.

The researcher encountered some problems which stood as limitations to this study. Such problems include, time available for this study, time to generate primary data from such large organizations. Other limitations include the rigor of having to move around Enugu and also problem of combining, course work, research work and a full time job among other things.

1.6    RESEARCH QUESTIONS

The following research questions form the basic postulate of the study:-

1.           Has computer introduction had any impact on accounting system?

2.           Has computer introduction made the accountant’s job easier?

3.           Has computer introduction provided more accounting information with same staff?

4.           Has computer introduction made the storing and retrieval of accounting information faster.

5.           Has computer introduction made the accountant more efficient?

1.7    DEFINITION OF TERMS

The purpose of this section is to give conceptual clarification of terms within the scope and limitation of the study so as to avoid ambiguity of concepts used.

A.G.L. – A.G. Leventis and company (Nig.) Plc.

DATA – Coded information i.e. information that has been

captured for processing or recorded in any way 12.

E.D.P. – Electronic Data Processing.

PROGRAM – A list of instructions which is to be followed

by a computer to solve a given problem.

INPUT – The process of entering data into computer.

OUTPUT – The section of the computer needed to take

result out of computer.

SOFTWARE – Generic term applied to most non physical

aspects of computing i.e. programs, operating systems, packages, compilers and to some extent, systems in general.

P.M.I – Paks – Micro computer international ltd, Ogui

Road, Enugu.

COMPUTER – A unique, sophisticated magnated

machine which has been carefully put together in such a careful manner that enables it to manipulate or handle any given task, be it in Engineering, science, business etc.

IMPLICATION – Implicate, enfold, entangle, involve,

something implied, or suggested as naturally to be inferred. What is implied, hinted act or suggested, but not expressed.

IMPACT – Effect