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The Impact Of Information Technology In Accounting System
[A CASE STUDY OF UNILEVER NIGERIA PLC]
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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.
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.
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.
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.
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
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