AN EVALUATION OF IMPACT OF COMPUTERIZED
ACCOUNTING SYSTEM IN UNITED BANK FOR AFRICA
(UBA) NIGERIA PLC KADUNA
ABSTRACT
This research was carried out on the topic, problem
and prospect of the computerized Accounting system in Nigeria Banks. Using the
United Bank for Africa (UBA) Nigeria Plc, Ahmadu Bello way branch as a case
study. The researcher intention was to find out how the use of the computerized
accounting system is of benefit to Nigerian Banks to know whether the
computerized accounting system can increase the speed at which withdrawals and
deposits are made, to know the extent to which banks’ staff have acquired the knowledge for the proper application of
the system and to find out the problems associated with the use of the system.
To achieve these, the researcher made use of both primary and secondary sources
of data. The primary source of data used for this work were the questionnaire
and interview though the questionnaire was mainly used. It was administered on
the total number of staff in the processing department of the bank i.e. the
sample size for this work. The sample size was ninety five (95). That is to say
there were ninety five (95) employees in the processing department of UBA
Nigeria Plc, Ahmadu Bello way Branch. The questions asked in the questionnaire
were based on the research questions answers to which were not 40 positive.
That is to say, though a large variable of the respondents responded
positively, some had opposite views. All said and dome, the researcher came up
with findings, that the use of the computerized accounting system had improved
the effectiveness of the banks operating. It has also increased the speed at
which customers of the bank can make deposit or withdrawal. The findings of
this research project also had it that employees of the bank still need to be
trained in computer technology so as to increase their knowledge of computer
operation. Some problems found out be associated with the use of the system
where the issues of fraudulent transactions which can be done easily without
being detected through the computer, unauthorized transaction and change in
programme instructions so as to affect some accounting information. After
concluding that the use of the computerized accounting system had done good to
the banking sector of Nigeria
considering the positive changes witnessed by banks in Nigeria since
its introduction, we recommended that Nigerian banks diverse. Their resources
into implementing modern computer based system. They should try to meet up with
their foreign counterparts who are applying more advanced computer technology
in their operations. Banks in Nigeria
should develop means or ways of detecting fraudulent transactions. That might
be committed by same employees and also provide opportunities from time-to-time
for their staff to go for computer training and skills improvement.
TABLE OF CONTENTS
Title page i
Declaration
ii
Approval
page iii
Dedication iv
Acknowledgement
v
Abstract viii
Table of
content xi
CHAPTER ONE
1.0 Introduction
1
1.1 Background of the study 4
1.2 Statement of the study 6
1.3 Objective of the study 7
1.4 Research questions 8
1.5 Significance of the study 9
1.6 Scope of the study 10
1.7 Historical Background of the case study 10
CHAPTER TWO
2.0 Literature
review 13
2.1 History of computers 13
2.1.1 Generations of computer 15
2.1.2 First Generation of computer 15
2.1.3. Second
Generation of Computer 17
2.1.4 Third Generation of computer 18
2.1.5 Fourth Generation of Computer 18
2.1.6 Fifth Generation of Computer 19
2.2 Types computers 20
2.2.1 Types of computer based on function 20
2..2.2
Types of computer Based on structure 22
2.2.3 Types of computer based on usage 23
2.3 The computer hardware system 24
2.3.1 The Generation processing Unit (C.P.U) 25
2.3.2 The peripherals 26
2.4 The computer software system 28
2.5 Method of procession data as
it
computerized accounting system. 35
2.5.1 Input 36
2.5.2 Processor 36
2.5.3 Storage 36
2.5.4 Output 36
2.6 Method input 37
2.7 Techniques of processing 41
2.7.1 Batch processing 41
2.7.2 On line processing 41
2.7.3 Real time processing
techniques 42
2.7.4 Looping or cycling
processing techniques 42
2.7.5 Interactive processing
techniques 43
2.7.6 Data base control
system 43
2.8 Data processing department
and control 44
2.8.1 Internal Data
processing control 44
2.8.2 External Data
processing control 45
2.9 Computer based Accounting
system 45
2.9.1 The need for
computerized accounting system 46
2.9.2 Advantages of computer
based
Accounting system 47
2.9.3Disadvantages
of computer based accounting system 49
CHAPTER THREE
3.1 Introduction 51
3.2 Research
design 51
3.3 Area of
study 51
3.4 Population
of the study 52
3.5 Sample 52
3.6 Instruments
for data collection 53
3.7 Validation
of the instruments 53
3.8 Reliability
of the instruments 54
3.9 Methods of
data collection 54
3.10 Method of
data analysis 54
CHAPTER FOUR
4.0 Data presentation and analysis 57
4.1 Data presentation 57
4.2 Data Analysis 62
4.3 Testing of hypothesis 72
4.4 Summary of findings 75
CHAPTER FIVE
5.0 Summary,
Conclusion and Recommendation 77
5.1 Summary 77
5.2 Conclusion 79
5.3 Recommendations 79
Appendix I 81
Appendix II 82
References 87
CHAPTER ONE
1.0. INTRODUCTION
During the primitive age very little or no notes were taken into proper
record especially those activities and transactions involving money. The
records and notes were usually taken either in memory (human being) or some
marks on the ground or trees.
As man developed from this
primitive era to more complex economic society, there occurs notable growth and
expansion in his way of life and activities he undertakes. During this time,
the most disturbing problems that man faced was that there were no accounts and
records. Being properly kept and stored. These therefore allow for inefficiency
and breach of contract and trust.
The more developed man
became the more the need for systematic record keeping and storage. The
complexity of the society lead to chronological order of manual development in
record keeping. Important records can be kept manually for future use but still
in tedious way.
At a more technological era, more work was done in the accounting
system. Accuracy, efficiency and durability became pressing problems that faced
the manually kept and processed records in the accounting system, hence the
development and introduction of electronic mechanical machine into the
accounting system became very vital.
A systematic technological advancement however gradually gave birth to
what is known today as the computer. A computer is an electronic device capable
of accepting data as input, applying prescribed processes on such data and
giving out an output which is called information, computer can also be said to
be a machine that manipulates in accordance with given rules in a
pre-determined manner. It is an electronic device that is used to process
complex and variety of data within the shortest possible time: This is because
it has very high speed of operation.
Data can get into the computer for processing via the input devices such
as keyboards, diskette, CD Rom, punch cards, flash drive etc. the actual
processing of data within the shortest possible time: this is because it has
very high speed of operation.
Data can get into the computer for processing via the input devices such
as keyboard, diskette, CD Rom, punch cards, flash drive etc. the actual
processing of data takes place in the arithmetic and logical unit (ALU). The
control unit (CU) is where all the activities of a computer system are being
monitored or coordinated and planned. There also is the memory that is the unit
in charge of storing or keeping all data or information in a computer system
for a long and short period of time. This storage is made possible under the
supervision of the ROM and RAM.
There are various types of computers. They are classified as either
analogue, digital or hybrid computers. A computer can also be a single purpose
computer or a general purpose one. The computer is being used as an accounting
device to perform various types of routine office jobs which formerly required
the services of the clerical officer. Where the computer is installed and used
effectively. It could perform payroll calculations, update accounts receivable
and payable, control inventories, process insurance data, prepare dividend,
keeping depositors accounts, distribute costs and expenses.
Accounting system in common use ranges from simple system in which
accounting records are maintained by hand to sophisticated system on magnetic
disk. The accounting to be used in any given company should be well tailored to
the size and to the information need of the business in a computer based
accounting system, he accountant need only to enter the data needed for the
computer to prepare journal entries. All the writings and postings to general
ledger and subsidiary accounts are then handled by the computer.
1.1
BACKGROUND OF THE STUDY
Computer being a new
remarkable thing in the banking system in the country has increased the rate of
which financial records such as ledger, customers accounts, balance sheets etc.
are prepared. Since there immemorial banks usually process information such as
calculations of money, updating of customers account etc manually, or with the
aid of pocket calculators. In recent times, the number of customer operation
account with the banks have increased. As a result of this, banks there fore
decided to employee a means through which information can be processed
efficiently and to ensure reliability in a speedy manner and this therefore
initiated the introduction of computer operation into the banking system.
Many Nigeria banks had since
computerized their system of accounting, UBA Nigeria Plc is not an exception.
It is therefore expected that by now the computerized accounting system whole
have increased the speed in the deposit and withdrawal of money from the UBA Nigeria Plc Ahmadu Bellow Way
branch. It is also expected that this system would be of immense benefit to the
bank and that staff of the bank especially the cashiers would have by now,
acquired the necessary skills that would enable them perform effectively using
the computer. Apart from these, the UBA is expected to have discovered problems
(if there are) associated with the use of computerized system of accounting.
1.2
STATEMENT OF THE PROBLEM
Banks in Nigeria have
been using the computerized accounting system in their day-to-day activities.
The UBA had adopted this system also.
The efficiency however
of using this system by banks in Nigeria needs to be ascertained
alongside its problems. Identifying how efficient the computerized accounting
system has being would go a long way in accessing it i.e. knowing the advantage
and disadvantage associated with it. Also one can be able to conclude that
their advantage out numbered its disadvantage or their disadvantage over-power
it advantages. Beside this, one can also have an insight on how Nigerian banks
had change or improved over the years in terms of efficiency and accuracy since
the introduction of the computerized accounting system. Into Nigerian banks the
following therefore are the problems that promoted the undertaking of this
research study. They include:
i.
Persistent system failure hinders the effective rendering of service to
customers.
ii.
Break down or temporary lack of service in the system also affect the
operation of the bank.
iii.
Manipulation of the computers by the staff with the attempt to defraud
the bank also make important effect on the operation of the bank.
iv.
Frequent changes in the computer packages and without proper and
adequate training also affect the operation of the bank.
1.3