1.1 Introduction
Personnel auditing is an activity or exercises carried out to examine the personnel records and a set financial statement and their underlying records. Modern societies are technology driven thus changing their characteristics at an accelerating rate. One of the current developments in the information sector that will greatly affect business (improve business and society) is greatly increased computer literacy of leaders and general population which will make computerization transition seamless. That is, the use of computer in any process has been applied in virtually all spheres of human Endeavour. It has equally found wide application in both the private and the public sectors of the economy.
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Limitation of the study and Definition of technical terms.
1.2 Background of the Study
In the developed world, the machines that surround the human race of the twentieth century are indispensable to their survival. The machines can be large or small, simple or complex. Some products, like sewing machines, are only used for specific purposes, while others, like electric drills, are used for many purposes. Certain machines are components of many other machines, even though they are designed for a specific purpose.
The abundance and diversity of information available about humans is another essential feature of life in the twentieth century. The computer is arguably the most helpful invention of the modern era. It was only in 1951 that the first commercial available computer was market. Today we are using computer ever increasing numbers is a way never imagined just a few years ago. Computers are now an integral part of information needs of many societies. They are used world- wide to solve a variety of information, financial health, tax credit insurance and so forth. The modern society has virtually embraced the use of computer in all facts of commerce and industry. A computer is an automatic tool that can store data, solve problems, and carry out calculations. The input unit, storage unit, central processing unit, and output unit are its four main components. Even so, completing a particular task will require a series of applications. A computer is able to accurately and quickly manipulate vast amounts of data.
The use of computers in business and industry has grown significantly since they can complete tasks that would take several days of human labor in a matter of seconds. In an organization, computers are used for data processing and to deliver precise and timely information to management. This greatly helps managers achieve their goals and objectives by providing them with accurate and timely information, which in turn raises their performance level.
The aforementioned facts highlight the necessity for a Local Government Administration's computerized personnel auditing system to be designed and implemented. as a part of the endeavor to guarantee sufficient and frequent documentation of personnel auditing for local government management. Personnel auditing is an activity that implies an indebt examination and evaluation of set of financial statement and their underlying records and document so as to form an objective opinion, which is expressed in the form of an audit report on the truth and fairness of view expressed in the financial statement about personnel in a local government administration. Before the advent of computer system, auditing was done manually. But due to expansion and increase in organization persons, and businesses, it become highly difficult and cumbersome to accelerate auditing progressively. It is becoming increasingly difficult to maintain accurate records of all the information about the personnel due to the growing number of roles and documents containing information about the personnel being audited. This causes great suffering for auditors. Without a doubt, this project will develop the existing system.
1.3 Statement of the Problem
Investigation revealed that personnel auditing involves the use of ledger, proof sheets, balance books etc. One of the biggest difficulties faced by manual personnel auditing system is the problem of errors traceable to human mistakes and shortcomings:
- Handling records beset with problems. The record are not kept well and retrieval as 'very difficult
- Loss of records is always common to manual auditing as there is no computerized way of storing the information contained in these records
- Calculation can sometime be wrong. In most cases, this has through oft many accounts and names which resulted to suspense account being opened and could not be closed unless as a charge or credit to profit and loss account.
This research is prompted to these problems because it is the basis of the above problem that are facing manual personnel auditing system that promoted the research auditing system that prompted the researcher to look into the subject of curbing and controlling personnel auditing manually.
1.4 Aim and Objectives of the Study
The aim of the study is to design and implement a computerized personnel auditing system that will solve problems associated with manual system. In achieving this aim, the following specific objectives were laid out as follows to develop an application software that will:
- Provide an efficient computer base system for easier documentation updating and retrieval of data about taxable of data about taxable employer.
- Modernize the auditing system so that efficiency can be realized.
- Give a more accuracy and timely information for government decision making.
- Provide facilities for quick access to stored data giving at random in other to assist in management functions.
- Store the confidence of employer of labor in the personnel income tax system.
- Eliminate all forms of corruption in personnel income tax auditing.
- Enhance the efficiency of the tax auditors by reducing the volume of manual operations of their disposal.
- Highlight inadequacies in the existing system through which computer application can minimize when computer is used effectively in the organization to eliminate inefficiency.
- Eliminate piles of dusty physical files in the offices thereby keeping the office neat and a very healthy environment to work.
- Enhance the processes of auditing personnel income taxpayers and hence provide immediate result on any operation required on the file of tax payers.
In case of replacement or stranger personnel, it provides modern sophisticated information system which supplies both environmental and internally generated information to new personnel.
1.5 Significance of the Study
Since the concept of the world as a global village emerged in the 90’s there has been a rapid development of computer technology in virtually all fields of human Endeavour. An analogy between manual systems and computer systems (Computerized Personnel Auditing System) provides a starting point for management both in private and public sector understanding of computer systems. This development has laid to the advancement of information management and hence necessitated the need to computerize that tax auditing system to meet with the present day needs of the government.
This research will equally analyze the present manual system of tax auditing and design a new system to solve the inadequacy inherent accurate and efficient means of tax auditing in Abia State. The new system to be installed will have all the advantage of the computerize system which includes time, flexibility, interactivity and creating a good database.
Besides, the study will serve as reference material for subsequent researcher in the field or related topics.
1.6 Scope of the Study
The scope of this research is to Design and Implementation of a Computerized Personnel Auditing System of a Local Government Administration in Nigeria, especially Abia State.
1.7 Limitations of the Study
During the course of this study, many things militated against its completion, some of which are:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Establishment Policies: Establishment policies posed a serious limitation as most staffs are not ready to release information needed for this project work. There were lots of information needed from the staffs of this institution to enhance the study which took them time to release or they did not release at all for security purposes, hence the scope was reduced.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet).
1.8 Definition of Terms
Auditing:
This can be defined checking/ cross. Examining of whatever you are auditing find out if there is any king of fraud.
Personnel:
This can be said to be staff / people employed by a company/organization.
Personnel Auditing:
It is defined as an activity or exercises carried out to examine the personnel records and a set financial statement and their underlying records.
Financial Statements:
The statement concerning money or it can be said to be statement of accounts (money).
Auditor:
It is an expert accountant who checks a company’s accounts.
