Information and Communication Technology and Accounting Practice in Nigeria

1.0 Introduction

Information has been a vital tool in decision making process. Since the dawn of civilization, people have acquired information to aid them in their personal battle to survive as they attempt to manage their businesses. The increasing complexity of the society especially, as is manifested in social, political and economic institutions, has necessitated the more, mans quest for more relevant information on a more regular basis. The processing of facts that can be traced back to thousand years ago.

Every financial manager has been concerned with the processing of facts or data, about his businesses operation so as to provide the most accurate and timely information to management. In order to provide this accurate and timely information to management, financial manager continuously sought more improved means of processing data. With the advent of industrial revolution, the need for faster, more efficient and also other methods of processing data became apparent. To satisfy these needs, various types of automated devices were introduced into the business world. Of these, electric computer is the most efficient and foremost as will as the fastest, and mot sophisticated device built by man Charles Babbage, an English Mathematician, designed the first mechanical calculation machines that incorporated the concept of input, Processing, and output in its design. The machines were the difference and analytical engines.

The difference engine was originally designed for working out tables of logarithm, it was based on the concept of difference of polynomials, the more complex machine, it was a general purpose information processing machine, which has the input, output and processing units. The analytical engine closely resembled modern computer in the following ways:

• One part of the machine known as the mill was dedicated to calculations (similar to the arithmetic unit of the modern computer central processing unit CPU)
• It had a part that ensures that all operations were carried out in correct control unit of the modern (CPU)
• It had a series of cogs that ensured that numbers were not presented to the mill until they were required for calculation this is equivalent to the storage unit in the present day computers.

Babbages engine had a part that could be identified as input and output. A computer may be defined as an electronic machine that accepts data as input, processes the data and information as output it also stores data and information which can be retrieved in the future.

1.1 Background Of Study

The use of computers is becoming diverse and wide-spread in all sectors of our society. At schools, homes hospitals, offices, banks etc. computers are used for one purpose or the other. Information and communication technology (ICT) which is synonymous with computerization is that technology which aids activates such as creation, storage, processing and communication of information.

Accounting is an art of recording, identifying, classifying, summarizing, in a systematic manner and in terms of money, transactions and events which are in part list of financial character and communicating the results to the users. This project therefore is to x-ray or highlight the impact of this information communication technology on accounting practices in Nigeria.

1.2 Statement Of Problems

The key issue of this research is to know the extent to which information and communication technology (ICT) affects accounting practices either positively or negatively

1. Accounting deals with source documents over the years, the challenge of the accounting profession has always centered on how to provide timely and accurate information to meet the needs of the end users of the accounting information.
2. As the organization grows in size and volume in its transactions, the challenge of storage, retrieval and communication of accounting information becomes so manifest; it becomes self-evident that the manual method of accounting information system cannot address the aforementioned problems.
3. The issue is to find out whether or not the introduction of information and communication technology offers the more credible alternative method for effective accounting practice.

1.3 Objective Of The Study

In prime purpose of this study is to carry out a research in order to know the impacts of information and communication technology on accounting practices in Nigeria.

1.4 Research Questions

The research questions considered in this work are enumerated below;

• How do you assess the development of accounting information system within the 20th country?
• What are the contributions of information and communication technology in dealing with the accounting problems of storage, retrieval and communication of accounting information?
• What are the impacts of information and communication technology on accounting practices in Nigeria?
• In what ways has information and communication technology contributed to the generation of timely and accurate accounting in formation to the users?
• In what ways has information and communication technology contributed in dealing with the problems of increasing volume of information?
• How can accounting practitioners cope with the growth in information and communication technology as it affects accounting practices?

1.5 Significance of the Study

This research is important because it would be beneficial to all organizations that are computerized in their activities. This is because accounting practices are done in every organization that is computerized and this organization will find it helpful to know whether information and communication technology affects their accounting practices positively or negatively.

1.6 Scope and Limitations of the Study

The scope of this project work will be limited only to Nigeria, that is, the research work will not be extended to other countries of the would.

1.7 The Limitations of the Study

This project work was limited by some inherent problems usually associate with research they are:

1. Confidentiality: This is one of the factors that limited the research work as some key personnel of the organization visited reserved certain points to themselves without supplying some vital information.
2. Finance: This is another factor that limited the research work. There are more places that I ought to have visited and gathered some information but inadequacy of finance hindered me.
3. Time: The time firm allowed for this research work was short that I could not afford exhausting the topic hence the need for further studies.
4. Low Literacy Level: This made it extremely difficult for many people especially, the junior staff of the organization visited to understand and appreciate the essence of the research questions so as to answer them in a way that could be meaningful.

1.8 Definitions Of Terms

In order to help the reader or user of this project work understand it in details, certain rated terms have been defined a number of these related terms are as follows;

Data: These are raw facts that can be imputed into the computer for processing. They consist of a combination of numbers (o-9)
Information: This is a processed data now in a usable form. The information on the payroll of staff in management information system department comprising names dates, of birth etc, is a good example.

System: This is a group of components working together to attain the same goal. Automobile and computer systems are good examples.

Data Base: This is a common collection of data which is substantially non-redundant and program independent.

File: This is an organized collection of related records.

Record: This contains all the information for a particular person or item

Program: This is the service of coded instructions written in a particular programming language to control the operators of a computer.

Value chain: A value chain divides a company's activities into technological and economically distinct activities that it performs

On-line: This implies that a device which may be a computer, is active in receiving data, which is being transmitted down a line

Coding: This means writing instructions in a programming language

Hardware: The physical and functional components of a computing equipment these components include input, output devices, central processing unit and auxiliary storage device

Software: These are computer programs which are the logical instructions that fell the computer what to do Central processing unit (C.P.U) this is the principal unit of the computer designed to perform calculations and to perform various parts of the computer system

Disk Drive: An auxiliary machine which magnetically stores information on disk.

Office Automation: This is an integrated collection of electronics devices which are used to increase office product. This may include contrast visual of teleconferencing, e-mail, multi-media systems and integrated telephoning concepts.

Floppy Disk: This is a soft coated disk used to store magnetically. It is removable and transportable unlike hard Disk but of less capacity in terms of data storage volume.