Evaluation of Accounting Information in a Computerized Organisation

1.0 Introduction

1.1 Background Of The Study

Nigeria breweries was incorporated on the 16th November 1946. it was incorporated as a private company for the purpose of manufacturing and selling beer and mineral waters, with a share capital of N300,000 (three hundred Dollars). All shareholders were foreigners. On the 30th November, 1946, Mr. Douglas Jones, Mr. John Stanley Hughes and ,Mr. George Cotgreave were appointed the first Directors of Nigerian Breweries Limited (but later changed to PLc).

The company having been incorporated. It was time to build both brewery and offices. A site was acquired and actual building began in 1947. all the machinery and technical personals came from a board. It took years for the work to be completed. On 2nd June 1949, Nigeria Breweries produced her first made in Nigeria lager beer. As the years goes by, Nigeria breweries continued to improve and increase in production of many other drinks such as Star, Gulder, Schnapps, Heineken. In 1955, construction work began at Aba brewery. In 1957 Star Beer was produced for the first time at the Aba brewery within a year of its completion. The Aba brewery was produced at full capacity.

1959, Nigeria brewery took an important decision. It decided to sell 10% of its shares in the company. Nigeria breweries were the first European company to voluntarily offer shares to Nigerians. From 1960 1971. NBI involved in the production of soft drinks to enable it diversify. In 1977, Nigeria breweries (NB) adopted brand name Maltina. The test marketing was done with the name Maltina. In 1978. Maltina was launched at Aba breweries, also in 1980 NB PLC, locally produced Maltex, 1982, it produced Vitamalt, 1984 malt and other raw materials, needed for beer production were placed under specific license.

In 1986, Nigeria embarked on structural adjustment programme (SAP). This programme affected the consumption of NB PLC beer and non alcoholic malt drinks. Which showed adverse effect on the progress of NB PLC. 1986 — 1995 was difficult years for NB because of market decline especially on beer. Transactions in an accurate and timely manner thus the computer became useful in the brewery industry. Having computer system done is not enough as there has been effective management team monitoring the affairs of the organization. There is also need for evaluation of accounting information because of the possibilities or errors and fraud accruing are greater in computer than in manual system and the likelihood of discovery is also less. As a result of this there is need for well designed accounting information which will be carefully monitored in operation.

1.2 Purpose Of Study

The primary aim of this research work is to examine the accounts information in the computerized accounting system as established in Nigeria Breweries PLC. The researcher intends to evaluate the accounting system by identifying the areas of strength and weakness instituted by the management to provide for security to safeguard its asset. Accuracy and reliability of records errors and other irregularities common in such large establishments.

It is also aimed at observing the principle that guide the recording of the financial transaction of the company with the intention of ascertaining the compliance of these principle with general accounting principles. After analyzing and evaluating the companys accounting system the researcher also aimed at offering suggestions and recommendation based on the findings. These findings and suggestions will be of a great help to Nigeria Breweries PLC and other computerized organization.

1.3 Research Question

The research question stated below are therefore the research question form, which the researcher aimed at obtaining relevant information from the research work, base in Nigeria Breweries PLC,

• Is it necessary for business establishment to have computerized accounting system?
• Does the accountant encounter any problem using computer to perform accounting function?

1.4 Limitation of the Study

Initially, the topic of the research project books like an area for exceptional students. This was so because of relatively newnes of computer system in this country.

Secondly, it was not easy getting information from these interviews. They were afraid that the researcher might divulge such information. It took several visit and assurance to make them see the genuineness of the research.

Finally, the limit of this research based on the evaluation of accounting information in a computerized organization like Aba base of Nigeria Breweries, which has other branches, but limit is based in Aba branch.

1.5 Significance of the Study

The uses of computer in the industries have been of great help in evaluation accounting information, as increase in technology and civilization has it that people should be computer literate. This study aimed at:

1. Finding out how accountant and use of accounting information have accepted the introduction of computer into their organization.
2. Find out the uses of computer while performing or preparing accounting information.
3. Identifying efforts being made to integrate computer to accounting information.
4. Finding out the benefits derived from using computers to prepare accounting information.
5. Identifying problems encountered while using computer to prepare accounting information.

The study may be beneficial and useful to the following bodies:

1. The Government:They can generate revenue from taxing such industries. And these could be used for social infrastructure and capital expenditure.
2. The Economy in General:This is because it creates awareness of the management process in an industry.
3. The Production Sector/ Business:The effective control of the business will result to wealth maximization and profit accumulation others include: Research Scholars, Foreign Interest Groups, Home industries making use of computerized accounting information, and infant industries.

1.6 Scope of Study

Computerized accounting information is an activity or process that should be done by or adopted by every organization.

This study therefore covers the application of computer in our organization. The extent of computerization, the effect of computerized accounting information in our organization etc. not minding that the problem of the computerized accounting information as an aid to efficient management of organization to better or national issue.

The researcher decided to focus on enquiring from books. This was done to ease the problems of coverage, so that objectivity could be achieved.

1.7 Assumption Of The Study

The evaluation of accounting of a computerized firm sterns on the fact that records are used in preparing annual financial statement which are used by the management to know the result of operation of the organization at the end of each period.

It is therefore assumed that evaluation of accounting information in computerized firms like Nigeria Breweries PLC help to ascertain the reliability, accountability, efficiency and effectiveness of its accounting information.

1.8 Definition Of Terms

Accounting: Means keeping records of business transaction in a systemic form.

Accounting information: Means knowledge obtained from recording of business transaction.

Financial Statement: Is a statement used to ascertain the financial position of a firm.

Cash Flow: Is a statement, which shows source and application of fund of a company.

Computer: Is a device (machine) used in accounting auditing and general management information

Software: Is a various program written before the data. These are set of instructions which computer understands without which computer cannot work.

Data: Data are raw unorganized, unprocessed, unarranged facts and figures about a person or organization or anything per say.

Back up copies: They are duplicating copies kept for emergency use.