GLOBALISATION AND INFORMATION TECHNOLOGY AS A CHALLENGE TO NIGERIAN ACCOUNTANT

Introduction

The modern methodology of Keeping Accounting record began with the introduction of double entry in Italy in the late thirteenth and early fourteenth countries. This was a period of paid expansion of commerce and industry. The earliest known double entry records are the Account of steward of the commerce of Genoa for the year 12340. An Italian monk Luca Pacioli published the first know text on Double Entry Accounting.

In the book published in 1494. he included a section on Double Entry Accounting entitled. Of Reckoning and writing De computis et scriptures. This section was later separately published in 1504. The Double Entry system quickly spread across Europe, particularly after the publication of Luca paciolis summa.

Electronic information processing has been in business for more than four decades and has evolved through several identifiable phases. In the late 1950s and throughout 1960s, routine business data handling was automated by punched Cord, Electronic Accounting Machines EAM and physically large but relatively low powered electric computer. Because these early capabilities were readily applied to Accounting and Finance activities, the data processing DP or electronic data processing EDP departments were usually within the Accounting or Financial functions. A decade later, terminals were being connected to mainframe and database management systems were introduced to handle the business data fibes that accounted.

STATEMENT OF PROBLEM

The Nigerian accountants are facing series of problems, which are as follow:

a. The major problem facing many Nigerian accountants is the poor level of information technology among them

b. Another problem is that the offices like Chief information officers CIOs, Chief information Security Officers CISOs, IT Auditors, and System Analysts which should be held by the accountants, but which are not due to their poor level of information technology

c. With level of the rapidly developing sophisticated information technology facilities in Nigeria banking system e.g. SMS banking, telephone banking, internet banking etc many accountant

CHAPTER ONE

1.0 Introduction

1.1 Background of the study

At each stage of development of man, accounting records have been developed according to the needs at that time. From the earliest time, the levying and collection of taxes by government called For records keeping and reports. The Accounting records prepared by tax collectors served as basis to reinforce business need for Accounting systems and controls.

Early civilization shows that the Babylonian businessmen recorded their sales and money lending some thousand years ago in day tablets. Egyptian used papyri to describe tax collection before 1000 BC. In Great Britain the earliest system of Account of which there is any record of those of Exchequers of England and Scotland. The oldest account, which has been preserved is the English pipe roll of the 11301131.

The modern methodology of keeping accounting record began with the introduction of double entry in Italy in the late thirteenth and early fourteenth centuries. This was a period of rapid expansion of commerce and industry. The earliest know double entry record are the Account of steward of the commune of Genoa for the year 1340.An Italian monk, Luca pacioli, published the First know text an double Entry Accounting.1494,he included a section on Double Entry Accounting entitled. Of Reckoning and Writing Decomputis et scriptures This section was later separately published in 1504.The Double Entry system quickly spread across Europe, particularly after the publication of Luca paciolis summa

Electronic information processing has been in business for more than four decades and has evolved through several identifiable phases. In the late 1950s and throughout 1960s, routine business data handling was automated by punched card, Electronic Accounting Machines EAM, and physically large but relatively lowpowered electric computers. Because these early Capabilities were readily applied to Accounting and Financial activities, the data process DP or electronic data processing EDP department were usually within the Accounting or financial functions. A decade later, terminals were being connected to mainframe, and database management systems were introduced to handle the business data Files that accounted.

During the 1970s as computers began to handle functions other than finance and Accounting emphasis changed from providing data to creating information and system 15.During the 1980s, telecommunication and networking Flourished with the introduction of distributed data processing, office systems, and personal computers. During this time, the function began to be called information management.

As technology advances at a torrid place in the 1990s, firm depend on it to streamline structures and to link electronically to suppliers and customers. New information technology capabilities and many new, superior information systems create tremendous opportunities and daunting challenges that today corporate executives must routinely and effectively manage.

1.2 Statement of Problem

There are some problems that need urgent solution which prompt to the writing of this research work With the level of information technology in Nigeria, the Nigeria accountant are facing series of problems, which are as follows:

a. The major problem facing many Nigerian accountants is the poor level of information technology among them. This have deterred them from unquantifiable opportunities.

b. Another problem is that the offices like Chief Information Officers CIOs, IT auditors, and system Analysts which are not due to their poor level of information technology.

c. It is pertinent to state that for an auditor to carry out him/her audit work effectively it goes beyond the usual audit ticks but require information technology which many accountant do not have.

d. With level of the rapidly developing sophisticated information technology facilities in Nigeria banking system .e.g SMS banking, telephone banking, internet banking e.t.c.; Many accountant can not cope with the system due to inadequate information technology.

e. More electronic banking products are being rolled out on a regular basis e.g. inter switch machine, telex machine, computer system e.t.c. Therefore, it is no longer as easy as it was before now to audit such client without being conversant with the information technology they deployed. This is because the very foundation of every audit being with understanding the clients system.

1.3 Objectives of the study

It and Accounting have been and will continue to be a subject of concern to it and corporate executive because they recognized the potential for enormous gain it and its ability to transform Accounting operations and other business. This of course forms the basis and objectives of this study and they are immutable below as follows:

a. To review the challenges of information technology and globalisation process related to Nigeria professional accountants

b. To highlight the critical factors in the applications of information technology in the industrial sector in Nigeria to improve their efficiency

c. To evaluate the applications of computer to Accounting and the industry and other competitors

d. To evaluate the concept of information in the technology and globalization processes.

e To evaluate the concept of information in the technology and globalisation processes.

1.4 Justification for the Study

The rationale behind this research work is to shed light on the problem, solution, discovery and facts under study and also to bring into focus all the variables that are indispensable for the completeness of this research work for the benefits of the user.

This study will also contribute to the body of knowledge and will benefit the society in general. This is, the study will assist in solving and existing problem, build previous research findings, revise information discovered in the past and create useful information and indicate area for further study. How is this Information technology as will see it in the background of the study calls for accountants and some other relevant people to know at least the preliminary studies and applications of computer.

This study therefore, explains in detail the state of information technology and challenges to Nigerian accountants in the era of globalisation.

1.5 Hypothesis of the Study

Hypothesis can be defined as a testable statement of possible relationship between two or more variable.

Hypothesis 1

H₀: Information technology does not enhance efficiency and effectiveness of accounting practices

H₁: Information technology enhances efficiency and effectiveness of accounting practices

Hypothesis 2

H₀: Deployment of information technology will not significantly improve the quality of internal control

H₁: Deployment of information technology will significantly improve the quality of internal control

1.6 Significance of the Study

This research work is of multiple importance’s. It significance can be referred to the following group of people