1.1 Introduction
The accounting profession is regarded in the course of history as social institution, that whenever people met in the economic area a reference is needed to keep score, this is accounting. A competent professional accountant in business is an invaluable asset to the company. These individuals employ an inquiring mind to their work founded on the basis of their knowledge of the company’s financials. Using their skills and intimate understanding of the company and the environment in which it operates, professional accountants in business ask challenging questions. Their training in accounting enables them to adopt a pragmatic and objective approach to solving issues. This is a valuable asset to management, particularly in small and medium enterprises where the professional accountants are often the only professionally qualified members of staff.
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, Research hypothesis and questions, Limitation of the study and Definition of technical terms.
1.2 Background of Study
Since the turn of the 19th century, the accounting profession has grown tremendously all over the world. Infact, during the first sixty years of the 20th century, major economic and social force have thrust the accounting profession to new frontiers and responsibilities. The factors contributing to this growth are th increase of the large corporate business in number, size and complexity in addition to government influence in the affairs of business by taxation and regulation. Technological advice especially in the field of computer, which has rapidly changed the process of data accumulation and interpretation are also factors contributing to the growth of the accounting profession.
Accountancy professionals in business assist with corporate strategy, provide advice and help businesses to reduce costs, improve their top line and mitigate risks. As board directors, professional accountants in business represent the interest of the owners of the company (i.e., shareholders in a public company). Their roles ordinarily include: governing the organization (such as, approving annual budgets and accounting to the stakeholders for the company’s performance); appointing the chief executive; and determining management’s compensation. As chief financial officers, professional accountants have oversight over all matters relating to the company’s financial health. This includes creating and driving the strategic direction of the business to analyzing, creating and communicating financial information. As internal auditors, professional accountants provide independent assurance to management that the organization’s risk management, governance and internal control processes are operating effectively. They also offer advice on areas for enhancements. In the public sector, professional accountants in government shape fiscal policies that had far-reaching impacts on the lives of many. Accountants in academia are tasked with the important role of imparting the knowledge, skills and ethical underpinnings of the profession to the next generation.
The role of the computer in accounting profession has facilitated the traditional accounting function such as payroll, cost accounting and general book-keeping. It is also used for analytical purposes such as cost benefit analysis. New types of work are added to the practice of the accounting profession, installation of accounting system, management of social activities auditing and a host of other activities relating to financial production and organizational problem and government units.
This accounting profession is a wide based and complex profession, this is because the above activities performed by accountant conflict complex problems and this creates the need for a high degree of expertise by the accountant in various specialties to enable him solve some of the problem created by management and society. New kinds of problems like auditing and installation of accounting system can also beaded.
The importance of the role of professional accountants in business in ensuring the quality of financial reporting cannot be overly emphasized. Professional accountants in business often find themselves being at the frontline of safeguarding the integrity of financial reporting. Management is responsible for the financial information produced by the company. As such, professional accountants in businesses therefore have the task of defending the quality of financial reporting right at the source where the numbers and figures are produced.
Therefore, in Nigeria where the research was carried out, the activities that was conducted is to know the Accounting Profession and its Role in the Society.
1.3 Statement of Problems
Investigation revealed that accounting is the actor of recording, interpreting and communicating financial information as an aid to decision making. The government influences the affairs of business through taxation and regulation has introduced new accounting problem and broadened the scope of accounting.
In addition, individuals face some problems of decision making like how much income received in a given period of time? What expenses they will incure? Are these amount large or sooner than in some other period? If the income exceeds expenses, what do I do with the surplus?
If the income is insufficient to meet, what were the sources and amount of income for the year and to whom and in what law are pertinent to those accounting and reporting procedures?
We individuals resolve these question through primitive records and reports. But the soundness of the judgment and decision depends on the quality, timelessness of the information.
The processing of information at this level must be systematized and managed by experts.
1.4 Aim and Objectives of Study
The aim of the study is to examine the Accounting Profession and its Role in the Society. In achieving this aim, the following specific objectives were laid out as follows:
- To examine how managers adequately and efficiently apply the role of accounting in their organizations.
- To ascertain the role and functions of accounting profession in management and society.
- To evaluate the impact of accounting on society including its significance to individual and society.
- To determine the extent to which accounting generally affects the economic activities of the private and public sectors in Nigeria.
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- Does a manager adequately and efficiently apply the role of accounting in their organizations?
- Has accounting principles has any control over public and private sectors in Nigeria economy?
- What are the roles and functions of accounting profession in management and society?
- What is the impact of accounting on society including its significance to individual and society?
- To what extent does accounting generally affects the economic activities of the private and public sectors in Nigeria?
- What will be done so that there will be perfect accountability in the accounting section of any organization?
- How will managers of the enterprises are able to recognize the role of accounting in their sectors so that these cases of improper accountability will be minimized or eradicated?
1.6 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
Hypothesis One
- H0: Organizational Managers does not adequately and efficiently apply the role of accounting in their organizations
- H1: Organizational Managers adequately and efficiently apply the role of accounting in their organizations
Hypothesis Two
- H0: Accounting principles does not have any control over public and private sectors in Nigeria economy
- H1: Accounting principles has control over public and private sectors in Nigeria economy
1.7 Significance of Study
In this study, the researcher has set out to examine the role of accounting profession in the society and as well in an organization mostly concerned with Zenith Bank Plc, Warri with highlights of the inherent problems encountered in the accounting departments of most organizations. It is expected that this work will be of interest to the owners of business enterprises, the government and the public.
To shareholders, owners of the enterprises, interested persons and the government, this study is expected to kindle their interest the more and they will take note of various recommendation mentioned here and help steer the management team towards forming a sound accounting departments which would enable organizations to present an accurate financial information of the firm.
This study will also help to serve as literature to individuals or corporate bodies who want to carry out further research on the role of accounting in the private and public sectors in Nigeria.
1.8 Scope of Study
The scope of the research is focused on the Accounting Profession and its Role in the Society in Nigeria. This research is restricted to Zenith Bank Plc, Warri, Delta State.
1.9 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 establishment 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.
- Research material: availability of research material is a major setback to the scope of the study.
- Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
- 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, questionnaire and interview).
1.10 Definition of Terms
The following terms were used for the purpose of this study.
Public Sector: Is that sector of the economy established and operated by the government or, its agencies, distinguishable from the private sector, and organized on behalf of the whole citizens.
Private Sector: This is that sector of economy established and operated by individual. Its agencies are totally different from public sector.
Accounting: Is the composite activity of collecting, analyzing, recording, summarizing, reporting and interpreting the through financial position or transaction of any organizations or government units.
