THE ROLE OF COMPUTER ON THE ACCOUNTING PROFESSION

ABSTRACT

This study deals with the role of computer to the accountant it is carried out to investigate the various way in which computer effects the accountant. We also talk about the basic ways the computer has being of benefit to the discussed. The problems that are usually encountered as a result of the introduction of computer in accounting and other field were also discussed. Like in chapter one, this deals with the introduction of the research work. Chapter two, the review of related literature drawn from the textbooks, articles, newspapers and journals were shown. Chapter three deals with the statement of the methodology used for the research study. Chapter four deals with data presentation, analysis and it subsequent interpretation from the research work, conclusion was 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 terms.

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.    Which determine whether computers does have effect on the accounting professional and how it perform task with maximum speed and accuracy which will make the job of the account staff a lot easier. Also they are underutilized, despite the immense benefits derivable from their optimum utilization of computer system.

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.

Furthermore, the traditional accountant was not trained in the special languages and devices used in the computer based 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 confidence 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.

1.1  BACKGROUND OF THE STUDY

The company Asaba Aluminum limited company was established in June 1981 in Asaba delta state. it is located at km 11, Asaba-Benin road. There certifications number is ISO9000/9001/9004/19011:2000.

They produce and market aluminum such as long span, setlines, crimp and flashing roofing sheet and cookware.

They company have total number of employees resulting to 51 to 100 people which comprises of senior management, management assistants and Non-management staff.

Non-management is sub-divided into three (3) senior supervisor skilled and unskilled workers. The technical employees comprises about 55% of staff at the management level and 70% at non-management.

Changes that brought about this research is to establish the various forms of accounting operations in which computers could be utilized.

1.2     OBJECTIVE OF STUDY

The objectives of this study are of follows:

1.  To highlight the importance of computer and it relevance accountants to

2.  In pursuance of his duties, the auditor may come across accounting statements prepared by a computer, especially by large business organization.  Thus, the auditor also needs to learn about computer programming.

3.  To provide a resource material for accountants and students of the profession relative to the advantage of computers.

4.  Identify the major areas of computer application in accounting

5.  Establish the various forms of accounting operations in which computers could be utilized.

6.  To highlight the unexplored potentials of the computer necessary for the efficient and smooth operation of the commercial banks as far as customer services are concerned.

7.  To encourage a continued investigation of the relevance of computers in the financial sector of the third world countries

1.3     STATEMENT OF PROBLEMS

This recent development has made the accountant to hire the services of a computer expert for audit purposes.  Does the computer displace the accountant with a computer scientist?

Sometimes, the auditor looks frustrated watching the computer as a fast being which perform the job of an accountant and selfishly stores them on magnetic tapes as invisible magnetized spots, in addition to this problems, the electronic accounting systems are usually designed by systems analyst and programmers. Who are in most cases non accountants?  This makes the accountant a stranger to the system he/she is to audit, unlike in a manual system.

Furthermore, the accounting information processing procedures are stated in computer programs which are written in special computer languages and stored on machine-sensible medium.  Where on-line integrated systems are in use, audit trail may not be in existence.

How can all these problems of the computer are surrounded so as to return accountants and make them offer more qualitative job to the firm and the public in general instead of the computer scientists or economists with computer knowledge. These are the problems the study shall be focused at.

1.4  RESEARCH QUESITONS

The analysis of these problems of this research work will raise certain important questions, which the researcher intends to prepare to answer.

1.          Does computer perform the task maximum speed and accuracy that will make the job of the account staff a lot easier?

2.          Is a computer a threat to the accountant?

3.          Is computer an aid to the accountant?

1.5     SIGNIFICANT OF THE STUDY

This study “The role of computer on the accounting profession” ( A case of the Asaba Aluminium company, Delta state) will educate the entire public how computer aids the accounting profession.

The world is fast turning into a global village with the rise of satellite communication, the internet and specialized  software in very competitive financial environment.  This study is significant in that it mains at increasing the awareness of our leverage on computerization.  If the company’s financial market must be further opened and stay competitive and profitably so, the computer technology might just hold the key.

Firstly, the study will not seek to justify the huge amount invested in computer, but also try to show the reward and meaningful development or improvements in terms of times saved, less clerical and laborious manual entries from the use of computers than any other mechanical automated machines.

Secondly, it will help  immediate and future computer users in accounting to understand the basic operations of a business enterprise.  Therefore, they need to be introduced to the fundamentals of computers and electronic data processing, wide range of hard-ware and soft-ware that process of computer programming and the high level programming languages that are utilized by the computer-using business firms.  However, and more importantly they need  the basis concept.

Finally, in recent times, there has been increased demand in the knowledge and application of the computer for processing data has become necessary in the face of unique position that computer occupies today in organizations with which most calculations and data processing are handled.

Such a lot of the accounting boarder-some processing large volumes of data, there is need therefore, to find out in the study the various benefits associated with the use of computers in accounting.

1.6      SCOPE OF THE STUDY

The study is carried out the role of computer on the accounting profession so as to educate the entire public on how computer aids in accounting work, using Asaba Aluminium company, Delta state as a case study.

This research work is expected to last for the period of one year precisely 2013.

1.7   LIMITATION OF THE STUDY

This research would have given a wider coverage if not for some constraints imposed on the research by the availability of the time and fund.

1.   Lack of research materials: Inadequate facilities in the library such as modern textbooks, Journals, Newspaper magazines and other materials almost thwarted the effort of the researcher. These materials are supported to be a pre-requisite for successful project work.

2.   Finance: This constant was the most serious of all. It restricted the number of journeys made to my research centre to collected data which led to narrowness of the scope of the study.

1.8  DEFINITION OF TERMS

(A)     COMPUTER:   computers are electronic machines which

under programme controls. Can accept data, process the data and give out accurate information with regard to that set of data.

(B)     PROGRAMME: is a set of instructions which feel a

computer in logical sequences on how to solve a given problem.  These instructions are written by programmer.

(C)     ACCOUNTING SYSTEM: is defined as the collection of

method basis and principles adopted by an organization for the preparation of its financial  statements to satisfy the need of the users.

(D)    OPERATING SYSTEM: The permanently held

programmes which control the sue of applications programmes and provide standardized facilities to the facility.

(E)     HARDWARE:        This refers to the six physical

element making up the computer e.g. backing storage, arithmetic and logical unit, immediate access stores, input device, output device and control unit

(F)      SOFTWARE:         These are programmes that inject life

if not systems or set of instruction and data which feeds the computers  hardware with what actions to take.

(G)     MAIN FRAME COMPUTERS: these are large general

purpose computers with extensive processing storage and input and output capabilities.

(H)    MINI-COMPUTERS:     these are physical small compare

with main frames and tends to be used for special purposes or small scales general purposes

(I)      MICRO COMPUTERS:   these are relatively low cost

computers used by a single user.

(J)      ON-LINE:                    These refer to the peripheral

devices or equipment that are in direct communication with the central processing unit of the computer.  It is the opposite of off line.

(K)     SYSTEM ANALYSIS:    it is the process of studying the

operations of an organization with the intent of defining data processing problems and designing a system that can be applied to the computer.

(L)      COMPUTER PROGRAM: A computer program is a set of

computer instructions which are used for solving a specific problem.