IMPACT OF INTERNET COMMUNICATION TECHNOLOGY (ICT) ON THE ACCOUNTING PROFESSION IN NIGERIA

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.

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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.

In the recent past, before the inception of ICT, accountants of an organization were using a socially acceptable behavioral method of reporting accounting and economic reports, carried out during accounting year ends. Accounts prepared include statement of account, statement of financial position, cash book, and statement of cash flow. The ICT, on accounting practice in Nigeria has become a subject of fundamental importance and concerns to all business enterprise and is gradually becoming a prerequisite for local and international competitiveness. It is obvious that the way accountants plan and take decision on what and how to provide their service in the accounting profession has been affected immensely by Information and Communication Technology (ICT). This has continued to change the manner in which accounting practice and their corporate relationships are organized worldwide and the variety of innovative device available to improve and facilitate the speed and quality service delivery. A major ICT has been made on accounting is the ability of companies to develop and use computerized system to track and record financial transactions properly and accurately. The recording of business transaction manually on ledgers, papers, spread sheets etc has been translated and computerized for quick and easy presentation of individual financial transaction and give report on it (Granlund & Mouritsen, 2003).

Information and Communication Technology (ICT) is often used as an extended synonym for information technology (IT), but is a more specific term that stresses the role of unified communications and the integration of telecommunications (telephones lines and wireless signals), computers as well as necessary enterprise software, middleware, storage, and audio-visual systems, which enables users to access, store, transmit and manipulate information. ICT is an umbrella term that includes any communication device or application, encompassing; ratio, television, cellular phones, computer and network hardware and software.

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 Impact of Internet Communication Technology (ICT) on the Accounting Profession.

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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.

The manner in which accountants can potentially add value to economic entities and societies is undergoing a metamorphosis. Accountant worth is now reflected in higher order critical-thinking skills, such as designing, business processes, developing electronic business (e-business), model in providing independent assurance and integrating strategic knowledge. Hence, most companies have derived a way of recording and reporting transactions.

Accounting professionals are expected to take advantage of ICT to automate existing processes for conducting business in new and innovative ways. Growth within management accounting and information system is becoming prominent with the advent of ICT. This study seeks to evaluate the degree of ICT adoption by accounting professionals in the preparation and presentation of financial reported accounts.

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1.4 Aim and Objectives of Study

The aim of the study is to examine the Impact of Internet Communication Technology (ICT) on the Accounting Profession in Nigeria. In achieving this aim, the following specific objectives were laid out as follows:

1. To evaluate the challenges associated with integration of ICT in accounting profession;
2. To assess the impact of ICT on financial transaction report of selected companies in the area under review;
3. To analyze the importance of ICT in training requirement of an accountant; and
4. To examine the effect of ICT implementation on the financial performance of selected companies in the area under review.

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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:

• What are the challenges associated with adoption of ICT in accounting profession?
• What is the importance of ICT in training requirement of accountants?
• How has ICT improve the financial performance of the selected company in the area under review?
• To what extent has ICT impacted on the transaction report of selected companies in the area under review?

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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: ICT has no significant impact on transaction report of selected companies in the area under review
• H1: ICT has significant impact on transaction report of selected companies in the area under review

Hypothesis Two

• H0: ICT has no significant impact on improved financial performance of selected companies in the area under review
• H1: ICT has significant impact on improved financial performance of selected companies in the area under review

Hypothesis Three

• H0: There are no challenges associated with integration of ICT into accounting profession in Nigeria
• H1: There are challenges associated with integration of ICT into accounting profession in Nigeria

Hypothesis Four

• H0: ICT has no importance in training requirement of accountant in the study area
• H1: ICT is important in training requirement of accountant in the study area

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1.7 Significance of Study

The finding of this research 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 also serves as a guide for further research work in the impact of ICT on business and finance. Findings from the study will also prove useful to students in the field of accounting.

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1.8 Scope of Study

The scope of the research is focused on the Impact of Internet Communication Technology (ICT) on the Accounting Profession in Nigeria using Access Bank PLC, Warri, Delta State as a case study.

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1.9 Limitations of the Study

During the course of this study, many things militated against its completion, some of which are:

1. 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.
2. 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.
3. Research material: availability of research material is a major setback to the scope of the study.
4. Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
5. 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).

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1.10 Definition of Terms

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.

Accounting Information System: Is a system of collection, storage and processing of financial and accounting data that is used by decision makers.

Oblivion: This is a state of forgetting or being quite forgotten, i.e. to show that if any organization fail to give proper accountability of the financial position it will then be forgotten.

Private Sector: This is that sector of economy established and operated by individual. Its agencies are totally different from public sector.

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.

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1.11 Organization of the Study

Chapter one of the study, provides background of the study, stating the problem of the study and the research questions and hypotheses to be tested in the study. It also highlights the significance of the study and scope of the study.

Chapter two reviews related literature on the Impact of Internet Communication Technology (ICT) on the Accounting Profession in Nigeria.

Chapter three discussed the research methods to be used in designing the study which will include research design, population, sample size and sampling technique, data collection and data analysis methods.

Chapter four presents the data gathered in frequency and percentage tables. The data will also be analyzed and research hypotheses will be tested with chi-square statistical test.

Chapter five summarizes the outcome of the study, draw conclusions based on the findings of the study and make necessary recommendations.