THE IMPACT OF INFORMATION COMMUNICATION TECHNOLOGY ON ACCOUNTING IN NIGERIA (A SURVEY OF FIVE SELECTED AUDIT FIRM IN OWERRI IMO STATE)

INTRODUCTION                   

BACKGROUND TO THE STUDY

          The role of information communication technology in the information age is well recognized by business, firms and government and is completely woven in to their organisational structures and strategic planning processes. Glover, (1993). The quality of strategic planning is limited by the quality of information available to decision makers and that executive information systems were critical in furnishing the necessary data which produced information.

          Through Information Communication Technology (ICT) services available some selected Audit firm in Owerri, Imo state, it can now give its customers a unified channel access to manage their personal financial information.

                                                    

          The adoption of this technology by this audit firms has increased operational efficiencies reduced cost through high utilization rates in the Information Communication Technology environment.

          The adoption of Information Communication Technology has helped Audit firm to keep the pace with changing customer’s needs and market dynamics and create a competitive differentiation in products and services.

The complex nature of the Audit system its products and services have made it necessary for Auditors to embrace this change as quick as possible. Since this medium of Audit has proven to be very efficient in most countries of the world (for example America) Nigeria Audit firms are also adopting it.

Indeed Information Communication Technology has made a great impact on the accounting system of Audit firm here in Nigeria and abroad as well.

Due to the problems with Audit practice that hindered the performance of effective Audit business, Information Communication Technology has also enhanced the performance of Audit firms in service delivery reducing cost and providing customers with the best convenient alternative to the Audit firms practice.

Accounting system is a system to record the accounting transaction and events of a business and account for them in a way that complies with its policies and procedures. The basic elements of accounting system are concerned with collecting, recording, evaluating and reporting transaction and event of the Audit firms. Gelinas, Oram, Wiggins, (1993).

Therefore, Information Communication Technology helps in collecting recording, evaluating and reporting transaction and events of the Audit firms.

     STATEMENT OF THE PPROBLEM

The desire to undertake a systematic investigation on the impact of Information Communication Technology on accounting system is due to difficulties faced by Audit firms to achieve their service rendering objective, large market share and target profit as part of the purpose of their existence. This is because the quality of services rendered by some of the Audit industries has created a negative multiplier effect on the Audit firms as their chance of optimizing profit is affected.

There are lot of complaints from the beneficiaries of Audit services that poor Information Communication Technology result to inefficient application of computer to the accounting system of the Audit firms.

In this study the researcher seeks to find out how the Information Communication Technology has impacted on accounting system of the Audit industries by using some selected Audit Firms as a case study.  

   OBJECTIVES OF THE STUDY

The objective of the study is to examine how the adoption of Information Communication Technology on accounting system affects the operations of Audit firms in some selected audit firms in Owerri Imo state such as:

1.                 How the introduction of Information Communication Technology has influenced Audit performances as well as assessing logically whether the adoption of information system has influence on the growth and development in the Audit firm.

2.                 To investigate in to the extent of effectiveness and efficiency in Audit firms after the introduction of Information Communication Technology.

3.                 To access how Information Communication Technology on accounting system has assisted in the enhancement of globalization of Nigeria Audit firms.

4.                 To access how Information Communication Technology (ICT) helps in the reduction of cost and benefit in increasing the revenue profit of the bank.

   RESEARCH QUESTION

          In the light of the foregoing the following questions are set:

1.                 Does audit firms benefit from Information Communication Technology?

2.                 Does the benefit audit firm acquire from Information Communication Technology outweighs the associated cost?

3.                 How does Information Communication Technology improve the performance of Audit firms especially in some selected audit firm in imo state?

4.                 Is the cost of acquiring Information Communication Technology products recovered from gains or profit made by audit firm in owerri?

SIGNIFICANCE OF THE STUDY

The research is important to new generation audit firms as well that would want to imbibe this idea. Also to customers that want to embark on this new system of Audit.

It emphasizes mainly on what others have discovered/existing knowledge in this aspect of Audit. It also contributes to already existing knowledge by way of emphasis.

This research will also enable students and other stakeholders in the audit firms as well to be aware of the recent development in the Audit sector, and how it can affect their performance.

Also the research would be of benefit to whoever concerns his self or herself with knowing more about Information Communication Technology which is one of the latest developments in this generation.

  LIMITATIONS OF THE STUDY

In this study the impact of Information Communication Technology on accounting system of Audit firms, the research is limited by time. Though this research ought to be very broad and all embracing the research is limited by time to go that far and treat this exhaustively.

The study was also limited by secrecy of information in the audit, which requires permission of the auditing higher authority hence most information was regarded as classified information.

Despite these limitations, the project work will be useful to any person that wants to know about the impact of Information Communication Technology on accounting system.

This research though is expected to be very broad and all embracing, it is limited to the impact of Information Communication Technology on accounting system and this is due to the fact that this is the researcher main concern at the moment.