IMPACT OF COMPUTER

TECHNOLOGY ON ACCOUNTING

SYSTEMS AND ITS EFFECT

ON EMPLOYMENT.

TABLE OF CONTENT

Title page

Approval page

Dedication

Abstract

Acknowledgement

Table of contents

List of figures

Chapter one

1.0 Introduction

1.1 Background of the study

1.2 State of the problem

1.3 Objectives of the study

1.4 Significance of the study

1.5 Scope and limitations of the study

1.6 Research Questions

1.7 Definition of terms

Chapter two

2.0 Literature review

2.1 Some applications of computer

technology in Nigeria

2.2 Union Response to the technological

changes

2.3 Implications of technological changes

on employees

2.4 Specific implication of computer

application to employment.

Chapter three

3.0 Research methodology

3.1 Research methodology used

3.2 Description of Respondents

3.3 Determination of sample size

3.4 Sources of Data

3.5 Methods of investigation

Chapter four

4.0 Presentation, analysis and

interpretation of data

4.1 Data analysis

Chapter five

5.0 Summary of findings, conclusion and

recommendation

5.1 Summary of findings

5.2 Conclusion

5.3 Recommendation

Bibliography

Appendix

a. Survey questionnaire

b. Interview questionnaire

c. Chi-square distribution table

CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Days are when most accounting operations

and decisions that have to be made on or

from them are on first hand basis. This is

because accounting operators and decision

makers are in close contact with such

accounting operations and as such,

collected, analysed and interpreted data

from such operations for decision making.

Today, as company and educational

operations expand in size and complexity,

company executives grow further removed

from first hand contact with business

scenes. They are to rely increasingly on

second hand information about what is

happening at the various stages of

business operations2, vis-à-vis research

and development, production, marketing and

consumption of goods and services. Since

decisions that have to be made by

executives are of profound consequences

and have to be based on highly fragmented

and typically tenous information, then it

is of great importance that such second-

hand information is from a very accurate

and reliable sources3.

According to A.$. fapohunda, to remedy

these accurate information difficulties in

1963, sears began establishing their

twenty – two regional computer centers

covering the entire unites states of

America4. initially, the regional computer

systems processed customers credit

accounts and general accounting data.

Later, merchandising and inventory

information from system were established

to provide information that the business

accounting world and business operations

are also busy expanding their

technological and industrial bases 6 by

breaking into new grounds and improving in

existing ones through the use of

computers.

With the introduction of computer to many

business applications, those business

areas that involve repeated tasks which

are often monotonous and fallible to human

errors (cash, inventory control, payroll

and etc) are increasingly being simplified

accurately by combining the cost,

effectiveness, simplicity of use,

efficiency, reliability and accuracy of

the computer to obtain, analyze and

interpret data information for efficient

business decisions. Nigerian business

organizations being to grow in size,

business operations and processes become

increasingly complex, hence computers are

being rapidly introduced to cope with the

overwhelming demands of business and

growth. Though the introduction of

computer to many facets of business

operations is a welcome idea, its use is

further implicated on accounting system

and as such organizations need to strike a

balance between accounting areas to be

manually operated so as to control or

limit the menance associated with

unemployment.

Some of the business operations to which

computer has been successfully

introduced;-7

- Printing graphic designs of

complicated nature.

- Payroll system.

- Billing system.

- Predict election result.

- Mark examination results such as

JAMB and WAEC.

- Control inventories.

- Predict performance of an aircraft

or missile still.

- On drawing boards.

- To calculate the critical path of

most efficient assignment of troops

or problems and so on.

It therefore becomes important that

technological changes such as the

introduction of computers in organizations

be carefully evaluated so that the gains

in technical efficiency are not made at

the expense of the well-being and

integration of employees.8. In the

circumstances, then a study of the

implication of computer introduction to

accounting system of business operations

is not only timely but mandatory so as to

avoid some of the problems associated with

technological changes in organizations.

This research is however, limited to the

implication of computer introduction to

accounting system of business operations

using A.G. Leventis and Pak – Micro

Computer Centre as computerized model

organizations.

1.1(a) HISTORICAL BACKGROUND OF A.G.

LEVENTIS PLC AND PAK-MICRO COMPUTERS

INTERNATIONAL LTD.

A.G. Leventis (Nigeria) PLC was

incorporated in 1958. This company went

public in 1978, and is quoted on the

Nigeria Stock Exchange.

It provides properties, company

secretarial and share registration

services. Industrial and public relations

services, legal services, financial

management and other services to all the

companies under the group.

This company has an ultra modern and

functional electronic data processing

centre in Lagos where most of the group’s

data are processed with an “OLIVETTI SP

600 Computer” which has a network of

terminals located at various

departments/companies of Iddo House Head

Office data input and output. Some of the

areas of computer application include

Accounts Receivable, Inventory and General

Ledger package used by A.G. Leventis and

company (Nig) PLC, Leventis Technical PLC.

There is payroll system for the staff and

all managers in the group. Other areas of

computer application include inventory,

billing and share registration.

Leventis stores – formerly a legal entity

is now a division of A.G. Leventis and

company (Nig) PC after the successful

merger in 1995. This division has an

“Olivetti SP 600 computer located at Malu

Road, Apapa which handles the inventory

control of Leventis stores throughout the

country as well as the account receivable

and general ledger of leventis stores.

Pak – Micro International Ltd is a group

name with Data Training Institute and

Master Maintenance Under it. It has its

Headquarters at Lagos, 77 Ikorodu Road,

Fadeyi. Regional office in Enugu, 31 Ogui

Road, Enugu.

Paks – Micro specializes in computer

sales, installation, maintenance, account

receivable, inventory and share

registration, training software

development and Bureau services. Because

of the nature of its business, the company

has the following sections sales,

maintenance and bureau services, software

development laboratory, training section

(DPI). Each section has its own manager.

The master maintenance is a civil Engineer

contracting firm with its General Manager.

1.2 STATEMENT OF THE PROBLEM

The importance of personnel in the

accounting section of an organization

cannot be over emphasized especially when

one remembers the facts that these

personnel support the organization from

its small scale to the large scale stage

when it begins to introduce computers to

many of its hitherto manual operations.

However, an organization has the

obligation of profit making and as such

promptness of information, accuracy,

speed, cost effectiveness, becomes prime

factors to the organizations.

The problem of this study is therefore to

find out whether or not the introduction

of computer technology to accounting

systems of business operations has reduced

the output of the accounting sections at

A.G. Leventis PLC and Pak – Micro computer

centre.

1.3 OBJECTIVES OF THE STUDY

The purpose of this research work is to

find out and evaluate the implication of

computer introduction to Accounting

sections of business operation with

particular reference to A.G. Leventis PLC

and Pak – Micro International as some of

the largest organizations in Nigeria

today.

The study will also attempt to find out

the efficiency and effectiveness of such

application to overall management

capabilities in decision making.

1.4 SIGNIFICANCE OF THE STUDY

This research work provides a clear

understanding of one of the social

implications of computer application on

accounting system. The information

obtained will be useful to management,

consultants, about unions, professional,

students, shareholders, investors,

institute of higher learning, training

managers, economist, the government and so

on.

The study will also be significant to

other organizations willing to computerize

their accounting operations as well as to

A.G. Leventis Plc and Pak – Micro computer

centre.

1.5 SCOPE AND LIMITATION OF STUDY

For the purpose of this study, the impact

of computer technology on accounting

system will in scope be limited to A.G.

Levenits and Pak – micro Computer. Both of

them are of Enugu Branch. This is because

of it’s many computerized application

areas and therefore makes for better

study.

The researcher encountered some problems

which stood as limitations to this study.

Such problems include, time available for

this study, time to generate primary data

from such large organizations. Other

limitations include the rigor of having to

move around Enugu and also problem of

combining, course work, research work and

a full time job among other things.

1.6 RESEARCH QUESTIONS

The following research questions form the

basic postulate of the study:-

1. Has computer introduction had any

impact on accounting system?

2. Has computer introduction made the

accountant’s job easier?

3. Has computer introduction provided

more accounting information with

same staff?

4. Has computer introduction made the

storing and retrieval of accounting

information faster.

5. Has computer introduction made the

accountant more efficient?

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