CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Before now business Success was built on the ability to move

goods and services with speed and accuracy. Today information has become

the fuel that powers business Success .In contemporary Cooperate world

information technology is deployed to gain competitive edge.

Information technology has been defined as the processing and distribution of

data using computer hard ware software telecommunication and digital

electronic (Encarta Encyclopedia: 2004).

Therefore it is now obvious that computer component of information

technology can no longer stand alone without the combination of other

component. However management planning and control responsibilities are

also par amount to a successful enterprise and they represent a mandatory of an

Organization to progress and survive in today highly unpredictable and

competitive business environment. The projected plan of operation must be

decisive and dynamic timely intelligent planning must be predicated on current

known fact and a thorough analysis and realistic approach to inevitable Feature

probabilities .These key requirement for planning directions will lead to

Business probability and an equitable return on investment which are the

objective of a successful management.

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The techniques and mechanical tools required to accomplish the

development of planning and control objective are now available but in many

instances appropriate management organization interest and progression in

fully acknowledging their utilizations unfortunately lacking. This is a dilemma

that must be overcome.

In addition management control system must not be overlooked. It comprises;

the plan of an organization and all of the Coordinates methods and measures

adopted within a business safeguard its assets check the accuracy and reliability

of its accounting data promote operational efficiency and encourage adherence

to prescribe managerial policy.

In other word it could be regarded as whole system of control

financial and otherwise establishment by the management in order to carry on

the business of the company or organization in an orderly manner safeguard its

assets and secure as far as possible measures. The accuracy and reliability of its

record for planning measurements for performance and control purpose .

Information technology is the technology used for study

understanding planning design construction testing distribution support and

operation of software computers and computer related system that exist for the

purpose of data information and knowledge processing.

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Another definition of the information technology (IT)is the industry has evolved

include the study science solution set for all aspect of data information and

knowledge management processing.

THE COMPANY UNDERSTUDY

Unilever (formerly known as lever brother) Nigeria plc (Rc113) is the largest

surviving manufacturing outfit in Nutria. The company in cooperated as a

private company in 1923 (as lever brothers Nigeria plc) to manufacture soaps

based on local palm oil. The company Strengthen it foot hold in the food and

drink business by merging with Lipton Nigeria limited in July (1985) and also

merged with chase brought products industry in December (1988) to become a

giant in personal product business.

In accordance with Nigeria enterprises promotion degree of 1972and 1977

40% of the company equity is held by Nigeria citizens and institution while the

remaining 60% is held by Unilever overseas holding limited Lipton tea

company limited and chase borough product international limited.

Today Unilever Nigeria plc is a leading company in the industrial sector

engages in the manufacturing achere and marketing of wild range of household

product.

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1.2 STATEMENT OF PROBLEMS

Management will often worry about the cost(financial and social) of

putting computer based system for processing accounting data and

generating accounting information.

incident of computer fraud.

Problems that may be associated with real time online operations.

Errors of input (garbage in garbage out) (GIGO)

Problems of system errors.

Problems that may be associated with the applications of computer based

audit procedures.

1.3 OBJECTIVES OF THE STUDY

Sequel to the problems highlighted above the main objective of this

research study is to determine whether information technology improves

management effectiveness by affecting business strategies. The research

study were identified as follows:

To ascertain whether or not accountant efficiency contributes to

organizational growth with the information technology deployed.

Determine whether information technology improves management

effectiveness by satisfying information needs or not.

Prove that information technology improves competiveness by affecting

business.

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Determine the organization experience with the effect of information

technology on accounting process.

Access the role of training in charge management and justification as

measured from the accounting perspective.

Ascertain whether information technology improves business efficiency

by automating basic information needs or not.

To emphases on the current development of information technology and

the challenges such pose to accountants in an organization

1.4 RESEARCH QUESTION

In any question to carry out this study towards finding out true position of

accountants efficiency in conversant with the information technology deployed

by an organization as an input to the business success. It is very important to

delve into the following research question.

1. Is introduction of information technology in Unilever Nigeria plc improving

accountant‟s performance?

2. How does information technology in Unilever Nigeria plc affect the

profitability in financial reporting?

3. Does the organization embark on training the accountant in other to

accommodate the change?

4. What are the peculiar problems faced by Unilever Nigeria plc in

implementing information gathered from its information technology.

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1.5 HYPOTHESIS OF THE STUDY

With respect to the statement of the study the hypothesis below can be

deducted.

H0: there is no relationship between the introduction of information

technology and the efficiency of the accountants on Unilever nigeria plc.

H1: there is relationship between the introduction of information technology

and the efficiency of the accountants on Unilever Nigeria plc.

H0: The Impact of Information Technology

1.6 SIGNIFICANCE OF THE STUDY

The research study is primarily meant for accountants and multinational

companies. Then the continent will guide the organization manufacturing

sector with large scale production of different home use product and how

accountants can cope with current development in information technology

and the importance in organization.

The research study is also significant to manager and the authorized

personnel (accountant or IT professionals) to have the knowledge that the main

threats to information technology in an organization are human beings.

Information technology facilities can be manipulated to commit

fraud.etc. The human threats to information technology includes insiders

hackers and phone freaks etc. the detailed operating plan involves the

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manipulation of a mass data in other to support a valid plan that will fulfill the

requirements of managements appraisal task to determine operational

directions make resolutions decisions and assures adequate performance

measurement criteria in light of the information system utilization.

Hence managers and accountants would be better equipped to handle

various related problems.

1.7 SCOPE OF THE STUDY

In the course of this research works the researcher encountered some

restriction which militates against the smooth execution of his work

among these issues are :

Unilever is a multinational companies with several subsidiaries under it

which had incapacitated the researcher of getting some of their

transactional data for the research methodology due to the secretiveness

of the sampled population.

The problem of retrieval of research instrument administered finance

combining my official work which makes it always difficult for me to go

out always not to do anything personal.

Other limitation include time constraint cost of carrying out research

work and unsupportive nature of respondents.

1 . 8 L I M I T A T I O N S O F T H E S T U D Y

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In this study the impact of information technology on accounting

system the research is limited by time. Though this research ought to be

very broad and all embracing the research is limited by time to

go that far and treat this exhaustively. The study was also limited by

secrecy of information in the company which requires

permission of the company higher authority hence most

information was regarded as classified information. Despite these

limitations the project work will be useful to any person that wants to

know about the impact of information technology on accounting

s y s t e m. This research though is expected to be very broad and

all embracing it is limited to the impact of information

technology on accounting system and this is due to the fact that this

is the researcher main concern at the moment.

1.9 DEFINITION OF TERMS

1. Data :these are any non-random set of symbols they are also called raw

files o facts event transaction which have been recorded and they are

the input raw materials from which information is produced

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2. Information: in this research the use of information will signify data have

been produced in such a way as to be useful to recipient.

3. Application package: this is a set of programs together with the

appropriate system documentation. The package is designed to meet the

needs of a number of users and is modular in construction so that a

limited amount of modification can be carried out to carter for the needs

of individual business.

4. MIS: management information system is the provision of information for

all level of management in order to perform their routine functions such

as planning directing organizing and controlling etc.

5. Database: data base is a stored collection of related data needed by

organization and individual to meet their information processing and

retrieval requirement.

6. Internet: internet is an international computer network made up of

numerous networks internet is also called “networks of networks”

7. Ethernet: Ethernet is a popular network protocol and cabling scheme that

uses a bus topology and carrier sense multiple access/collision detection

(CSMA/CD) to prevent network failure or collisions when two devices

try to access the network at the same time.

8. Intranet: this is a private network belonging to an organization (which

was internet protocol) it is used in Unilever Nigeria plc .it is accessible

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only by member of the organization require authorization to access such

network (this is called an Extranet).

9. E Business: this is the use of internet in the conduct of business.

10. Extranet: this is an intranet that allows non members of the organization

to access the network.

11. Wireless network: wireless network are wide area network (WAN)that

allows user to access information instantly via handheld wireless device.

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