CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF STUDY

In this present world individual business men firms and government have

seen the effects of computer in the area of recording and safe keeping of

information.

However this computer cannot function unless the day-to-day business

activities are well documented and fed into it properly.

Every business set up has different levels of management and each of these

levels of management needs information to enable them make decision on

how the objective of the organization can be achieved likewise the

government.

In Nigeria before the advent of computer nearly all clerical works are done

by paper and pen. This gives rise to

 Mismanagement of stationeries.

 Errors and omissions in accounting enterprises

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 Monotonous work and tiredness and other associated clerical

problems. But since the introduction of computer problems are

minimized. Therefore the use of computer in recording accounting

information in this modern world cannot be over sighted. In the past

recording filing and safekeeping of information was known as

“routine clerical work” but with the advent of sophisticated

electronic business machines it is now known as “data processing”.

Today no business can survive without the use of computer especially in

recording accounting information.

1.2 STATEMENT OF THE PROBLEMS

The problems of computerized accounting and computer are as follows:

a. DATA/INFORMATION INPUT:

“Garbage in garbage out” is a general phenomenon in

computer. Electronic computer has no self-judgment and as such

devoid of human errors becauseit’s what you feed into the

computer (input) that it gives out (output). For example if one

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feeds in wrong data into the computer no matter how efficient the

programming may be wrong output will be the outcome because

the computer has been misled.

b. COMPUTER LANGUAGE:

Computer has its own language and all data are programmed

and written in this special language. Therefore it required a lot of

training without which computer will not make any meaning to the

users.

c. ENVIRONMENTAL CONDITIONS:

Computer does not function effectively in a hot environment

for this reason it requires huge amount in installing air-conditions

to enhance efficiency.

d. COST:

Small businesses cannot afford computer because it is costly

to buy and maintain which constitutes a bottleneck in getting

correct information and as such the small businesses cannot

thrive in the present of the big ones.

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e. AWARENESS:

Some individuals business men firms and government are

not fully aware or do not know about the importance advantages

disadvantages and in-depth problems/prospects study of the use

of computer in keeping accounting records and information.

1.3 OBJECTIVES OF THE STUDY

This research work on “The use of computer in recording accounting

information problems and prospects” is to investigate or require for the

following:

a. To make known the brief history of computer understand some

important components of the computer advantages disadvantages

and importance to users that is individuals business men firms and

government as a part of awareness on computerized accounting.

b. To make known to small scale businesses affordability of computer in

that the cost of different types of computers that can help in recording

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accounting information and transactions are made known to them so

that they could strive in the presence of the big businesses.

c. To make known users of computer in recording accounting

information to know how to keep computer running in a perfect

condition the environment it’s to be kept in should be conducive and

cool for effective and efficient performance of the computer system.

d. To make known to users of computer in recording accounting

information to understand that there are languages that computers

understand and use so therefore they should go for training in this

languages to enable them communicate perfectly with the computers.

e. To make known to the users of computer in recording accounting

information to make sure that the data/information we want to input

into the computer is correct valid trustworthy and accurate so that

when we need back those information we won’t get something else

from what we are looking for.

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1.4 RESEARCH QUESTIONS

The following are some of the questions the researcher would like to find

answer to in order for him to carry out the project effectively:

a. What made individuals firms and government adopt computer

system?

b. What has been the effect of the use of computer on old and new staff?

c. ‘‘Routine clerical work” and “Data processing” which is more

economical?

d. What improvement has computer made to the general accounting

system in the firm and country?

e. What are the problems that generate from the use of computer?

f. What are needed to make computer use effective?

g. What effect has the use of computer in the labourmarket?

h. In modern accounting can computer be left out in recording

information?

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1.5 RESEARCH HYPOTHESIS

The following hypothesis shall be treated in the coursed of carrying out this

research work:

1. HO: There is no significant relationship between the electronic data

processing approach and the manual system approach.

Hi: There is significant relationship between the electronic data

processing approach and the manual system approach.

2. HO: Computer has no positive effect in recording accounting

information.

Hi: Computer has positive effect in recording accounting information.

3. HO: Information from the computer is not always correct reliable

and accurate.

Hi: Information from the computer is always correct reliable and

accurate.

4. HO: Not all employees have access to programmed data.

Hi: All employees have access to programmed data.

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5. HO: The use of compute has not cause unemployment.

Hi: The use of compute has cause unemployment

1.6 SIGNIFICANCE OF THE STUDY

The significance of this study cannot be over-emphasis because of the

nature of modern day organizations. It is embarked on to poultry the

importance of computer of an organization with peculiar reference to

modern accounting system. These importances are stated down below:

i. The importance of this study is to make the accountants and the auditors

realize that computer should not see as an enemy but as an aid to

them and their business functions.

ii. This study is to help remove the in concept concealed by the junior

workers that computer introduction will lead to retrenchment of

workers which is a fallacy because without human being computer

cannot work or operate.

iii. This research work will help disclose the benefits of computerized

accounting system with the understanding that if the third world

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countries like Nigeria can undertake this system they can compete

with the advanced countries.

iv. This will also help see accuracy and efficiency of work carried out as

well as increased productivity.

v. This research work will also help other renders and researchers to

widen their scope of knowledge academically occupationally socially

and economically as a base for other research work.

1.7 SCOPE LIMITATIONS AND DELIMITATIONS OF STUDY

1.7.1 SCOPE OF THE STUDY

This project is designed to cover the use of computer in recording

accounting information by individuals firms and government. But

generally business organizations were concentrated upon with a case

study of Bendel feeds and flourmill Edo state.

However particular attentions were to the following areas.

i. Application and use of computer in financial accounting.

ii. The use of electronic computer in management decision making.

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iii. The advantages derived in the use of computer.

1.7.2 LIMITATIONS OF THE STUDY

It is the researcher’s desire to carry out an elaborate research work on the

selected topic for accuracy reliability and efficiency. Also as an

indispensable data base for interested person or groups of persons. But

the following difficulties brought limitation to be:

I. LACKS OF COOPERATION FROM THE RESPONDENTS: The reluctance

of the officers of the organization involved to attend to the researcher

limited the researcher in getting full details.

ii. FINANCE: Inadequate finance was a core problem for the researcher

and this adversely delayed the progress of the work.

iii. SECRECY: Some information needed by the researcher is tagged

“Confidential” and this limited him from getting the information.

iv. TIME:The time available to complete and submit this research work is

too short; as such the researcher is limited to elaborate research.

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1.7.3 DELIMITATION

The research work on the use of computer in recording accounting

information would have cover the importance it has contributed to

individuals firms and government but due to time availability finance

strenuous academicals works all these sectors mentioned were not

reached therefore the researcher is limited to only business

organization [firms] with a case study of Bendel feeds and flour mill

Ewu Benin city.

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