Impact of Information System on Accounting Practice

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IMPACT OF INFORMATION SYSTEM ON ACCOUNTING PRACTICE
CHAPTER ONE
INTRODUCTION
Various information

Information has been an important factor in decision making process. In recent times, people and organizations try their best to acquire information in a timely manner to aid them as they battle to manage their businesses. The increasing complexity of the society especially, as is manifested in social, political and economic institutions, has necessitated the more, man’s quest for more relevant information on a more regular basis. The processing of facts that can be traced back to thousand years ago. Every financial manager has been concerned with the processing of facts or data, about his businesses operation so as to provide the most accurate and timely information to management. In order to provide this accurate and timely information to management, financial manager continuously sought more improved means of processing data. With the advent of industrial revolution, the need for faster, more efficient and also other methods of processing data became apparent. To satisfy these needs, various types of automated devices were introduced into the business world. Of these, electric computer is the most efficient and foremost as well as the fastest, and most sophisticated device built by man Charles Babbage, an English Mathematician, designed the first mechanical calculation machines that incorporated the concept of input, Processing, and output in its design. The machines were the difference and analytical engines. The difference engine was originally designed for working out tables of logarithm, it was based on the concept of difference of polynomials, the more complex machine, it was a general ‘purpose information processing machine, which has the input, output and processing units. The analytical engine closely resembled modern computer in the following ways. One part of the machine known as the mill was dedicated to calculations (similar to the arithmetic unit of the modern computer central processing unit CPU) (b) It had a part that ensures that all operations were carried out in correct control unit of the modern (CPU) c. It had a series of cogs that ensured that numbers were not presented to the mill until they were required for calculation this is equivalent to the storage unit in the present day computers. (d) Babbage’s engine had a part that could be identified as input and output. A computer may be defined as an electronic machine that accepts data as input, processes the data and information as output it also stores data and information which can be retrieved in the future. The use of computers is becoming diverse and wide-spread in all sectors of our society. At schools, homes hospitals, offices, banks etc. computers are used for one purpose or the other. Information and communication technology (ICT) which is synonymous with computerization is that technology which aids activates such as creation, storage, processing and communication of information. Accounting is an art of recording, identifying, classifying, summarizing, in a systematic manner and in terms of money, transactions and events which are in part list of financial character and communicating the results to the users.

This project therefore is to x-ray or highlight the impact of this information communication technology on accounting practices in Nigeria.

1.1 STATEMENT OF PROBLEMS
Over the years, accounting as a practice deals with source documents from various transactions. These documents in the form of information has created some challenges in the accounting profession and they are mostly centered on how to provide timely and accurate information to meet the needs of end users of these accounting information. In view of this, as organizations grow in size and volume in its transactions and operations, the challenge of storage, retrieval and communication of accounting information becomes so noticeable and causes several...
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