2 THE RELEVANCE OF COMPUTER IN ACCOUNTING PROFESSION






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THE RELEVANCE OF COMPUTER IN ACCOUNTING PROFESSION

CHAPTER ONE

1.0            INTRODUCTION

Ever since the creating of man, there has be a continuous quest for man to improve his will being through his reactions to the problems and challenges posed by his environment.

A lot of measures has been taken by man to aid him an conquering problems and challenges resulting from his overawed pressurized work and leisure environment.

The introduction of computer on to field of accountancy aroused from the shear need for improve conveniences, time reduction, provision of more reliable and accurate output which man has been hunting for, from the world.

Over the past several decades, computer has become more deeply embedded on the work places of many and various profession. Some professional responded to be changes with over whelming responded which lead to over coming the chances of learning new skills new technology.

Many other responded of accountants.

The fact that the primary objective of every accounting system is the enhancement of its efficiency, to achieve this objective, it becomes very clear that accounting as a profession becomes computer oriented.

Lence, computer has succeeded in reducing, it not (limenating the complex nature of accounting job for the past decade.

Consequently, there is a need for accountants who are more technical without computer knowledge to crave for computer literacy.

Therefore, by choosing the topic “The Relevance of computer in Accounting profession” the researcher attempts to review, evaluate and appraise the contribution of computer to wards the enhancement of efficiency and profitability of accountancy as a discipline of the discipline that embraces computerization enthusiastically.

Obviously, no single development in the past few decades has had a greater effect on accounting and business system than the advent of electronic data processing (EDP).

The Cambridge scientist who in the 1940-45 developed one of the first genuine computers called Electronic Delay Storage Automatic Calculator (EDSAC) .

Could hardly have succeeded in transforming the accounting system alone, if not as a result of computerization.

The introduction of computer has greatly transform the modern accounting system, thereby making it possible for the system to cope with the society increasing need for accounting information. Hence the use of computer has become a common part of many offices.

Today in many civilized societies such as U.S.A, Japan etc, people now has the ability of loading and withdrawing money into and from their accounts respectively; even without visiting their respective bank.

No organization will effectively function without an effective and efficient accounting system. Thus, this calls for computerization. One of the important instruments available to the accountants towards achieving this goal of establishing an effective accounting system is the idea of introducing computer in accounting.

Computer technology has helped in greater dimension towards achieving the problems encountered using this manual tools and machines in accounting profession.

Computerization ranks prominently in the commanding height of modern accounting profession and notable among them are money transfer, manipulating of accounting payroll processing as well as enhancing the efficiency.

 1.1     PURPOSE OF THE STUDY

The purpose of this study is to identify:

  1. The important contributions of computer in accounting profession on payroll processing.
  2. To what extent this relevance contributions of copter has benefited accounting.
  3. To confirm or deny some widely held assumptions that computer displaces people from their job.
  4. To determine if computerization of accounting system will make any improvement on the efficiency the reliability of accounting information                                                                                         

1.2            SIGNIFICANCE OF THE STUDY

There is no doubt that the world is going computerized, this is why the significance of this study cannot be over-emphasized.

However, virtually every field of study needs computer and it has been discovered that many profession operating on manual skills and machines are facing a lot of problems.

Hence there is a sharp increase in the rate of inefficiency and inefficiency and ineffectiveness in many professions due to lack of usage of computer.

This significance of this study lies in the sense that it tends to offer a useful suggestion on how to alleviate the bad situation in accounting profession.

It is hoped that the study will form a basis for future interested researchers.

 1.3            LIMITATION OF THE STUDY

It is necessary to acknowledge that computer has inherent limitations, which include:

COMPLEXITY: New problems require time and money to prepare for use of the computer program, which are written and used, once are not very cost effective.

NO INTELLIGENCE: Which capable of accomplishing very complex tasks, computer cannot do unless instructed by human information of a program.

Consequently, it is often called an “idiot machine”, one can alter or replace the rules more or less act will. It is an idiot because it simply cannot thank for itself.

COST: Initial cost of acquiring a computer could be devasting with the special conditions that are required by the computer. As a result, not all potential uses can afford the computer great benefits.

INFLEXIBILITY: A computer can work only as it is programmed. Information that is not normally required cannot be made available by the machines because it would not be programmed to provide it.

SHORTAGE OF STAFF: Often times, there is a shortage of specialist staffs particularly as regards system analyst. System designers and computer programmers. This dose not only add to the cost but may subject the form to a high labour turnover.

OBSOLESCENCE: This is one of the basis problems facing modern technology today, and computer seems to face a more serious limitation.

This is due to the speed at which electronics have developed in recent years.

LACK OF PRIVACY: The most recent problem facing the computer is the exposure of processed information to a third party with the establishment of a network system, many outside now have access to.

FRAUD: With the introduction of less expensive computers, available workers now shift from “book fraud” to computer fraud under which computer staffs perpetrate frauds that cannot be detected for years by the management.

 1.4     SCOPE OF THE STUDY

The study was restricted to accounting profession that is to say, the important contributions of computer in accounting profession as well as its effects on accountants.

 1.5     DEFINITION OF TERMS

COMPUTER: An electronic machines capable of receiving information, storing and manipulating data and later reports the result.

ELECTRONIC MACHINE: This means that computer possesses all the qualities of an electronic machine and allows the user to perform complex and tedious tasks with ease.

DATA: They are raw facts that can be fed into the computer for processing.

INFORMATION: This is a machine data.

COMPUTER HARDWARE: These are those physical part of the computer system that can be seen, feel or touch. Eg keyboard, monitor etc.

COMPUTER SOFTWARE: A collection of logically related programs that work together to control the hardware.

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