ABSTRACT
The needs to carryout
research on the prospects of computerized audit system in Nigeria as a result
of the advancement in the usage of computer in the business world. Technological advancement is in retrospect to
early 1950’s the first world stored program computer EDSAC was built in 19s50
at Cambridge while the first commercial stored computer was UNIVAC land used by
America Bureau at census in 1951, in 1953, office computer “Leo” was introduced
and since the computer of various sizes speed; reliability are new conceived an
extremely wide rage of application without any changes in the fundamental
principal. The research work started
with an introduction to the topic and ended with recommendation. It consists of
five chapter’s altogether in which each chapter deals with an important aspect
of the topic and the responds at all my interview on respondent. This has
helped a lot in reading a logical conclusion about the prospects of computerized
audit system in Nigeria and the introduction of the topic, the objective of the
study, limitation and delimitation of the study and finally and definition of
terms, chapter two based on literature review and stated with the historical background
of the Wema Bank Nig. Plc which happen to be case study of the research work. Chapter three also deals with the research
methodology. It explains various methods put in place in conducting research.
It ranges from observation method to questionnaire method and friendly talks about
the problem encountered during the course of this research work. Furthermore more
chapter four deals with analysis of data activities of the organization as a
while finally chapter five deals with the summary, conclusion, recommendation
and suggested area for further research and bibliography which end the research
work.
TABLE OF CONTENT
Title page i
Certification ii
Dedication iii
Acknowledgement iv
Abstract v
Table of content vi
CHAPTER ONE
1.1 Introduction
1.2 Justification of
study
1.2 Statement of
problem
1.3 Objective of the
study
1.4 research of the
study
1.6 Scope of the
study
1.7 Limitation of
the study
1.8 Literature
review
CHAPTER TWO
2.0 Literature
review
2.1 Historical background
of Wema bank Nig. Plc
2.2 Introduction of
computer
2.3 Importance of
computer in auditing
2.4 Manual and computer
audit system compared
2.5 Electronic data
processing and the auditor
2.6 Computer
auditing approaches
2.7 Computer
assisted audit techniques
2.8 Desirable
safeguard of segregation of duties
2.9 Computer audit
working papers.
CHAPTER THREE
Research methodology
3.1 Introduction
3.2 Selection
of study area
3.3 Observation
method
3.4 Personal
interview
3.5 Questionnaire
3.6 Problems
encountered
CHAPTER FOUR
4.0
Analysis
of test of hypothesis, results and implication of statistical test
4.1 Introduction to
data analysis
4.2
Impact
of computer on accounting system in the productivity of accounting of
accounting personnel.
4.3 Impact
of computer and quality of accounting service
CHAPTER FIVE
5.0 Summary,
conclusion and recommendation
5.1 Summary
5.2 Recommendation
5.3 Conclusion
5.4 Suggestion
for further research
Bibliography
Questionnaire
CHAPTER ONE
1.1 INTRODUCTION
An audit is define as the
independent examination and expression of opinion on the financial statement f
an enterprises by an appointed auditor in accordance with his terms of
engagement and in compliance with an relevant statutory obligation and ethnical
requirement.
Accounting can be seen as
set theories; concepts and techniques by which financial data are processed
into information for reporting, planning, controlling and decision making
purpose or the processes of recording classifying reporting and interpreting
the financial data of an organization. Accounting involves actual writing of
books, compilation of record and eventual preparation of financial statement
where and auditing involves the examination of the completed book and records
and subsequent submission of the reports by the auditors.
Accounting can be seen as
a management information system. It help manager to perform their duties of
reporting on how they have managed fund entrusted to their care share holders
who appointed the manager to manage their financial and economic interest would
be interested to know what has happen to such
investments in that particular period or year.
Today, limited companies
are owned by shareholders and often managed by directors, appointed by the shareholders.
The reporting between the
shareholders and the directors take the form of stewardship accounting reports
are reports of financial state of affairs of an enterprises state a particular
point in the time and it is used by the share holder, potential investors as
the tools for making decision.
ACCOUNTING REPORT
INCLUDES THE FOLLOWING:
-
FINANCIAL
STATEMENT
-
MANAGEMENT
ACCOUNT
-
ACCOUNTANT
REPORT
-
SHARE
VALUATION REPORT
A lot of problems often exist
when managers reports to the owners (shareholders) the reports many contain
errors, may fail to disclose relevant information as regarding the
organization.
The objective financial
reports are of varying degree but primarily the information is for the purpose
of decision-making. Each decision maker judges what account and financial
information useful for him such decision are influenced by the availability of
information and the capacity of the decision maker to process the information
presented to him for the purpose of his assignment.
Accounting report should
therefore provide information that is useful to the management in making
decision in maximizing the objective of the organization.
The accounting of multinational company is very complex to
rational because it involves voluminous transaction and entries which must be integrated,
summarized and presented in such a way to depict the relationship between the
group (i.e holding and its subsidiary) and to
show the accounting concepts conventions and control system being
adopted in the organization.
The manager of these
companies might find it very difficult in getting the correct information and
proper recording.
The introduction of
computer which has become a household
name in the world today make it possible to have then required information
within a short period of time. The computer wide spread acceptance in business
world is facilated by its accuracy speed and flexibility in data processing.
The increasing volume of
data and urgency at which information is being required and coupled with the
efficiency of computer have made companies to computerized their accounting
system.
Especially in advance
countries, in Nigeria many companies especially multinational and banks have started
giving attention to the need for their system to be fully or partly
computerized therefore this study is here designed to examine the prospect of
computerized audit system in Nigeria especially in banking industries.
1.2 OBJECTIVE OF THE STUDY
The objective o this study
is to evaluate the ability of computer to detect error and irregularities and
friend effectively.
1.3 STATEMENT OF THE PROBLEM
The project will intend
to look into the inability of auditor to take cognizance of the problems that
is affecting the advancement in the computerized accounting system or audit
system in a computerized accounting system or audit system in computerized
accounting and believed that computer’s error, irregularities and fraud is
difficult to detect unless one is versatile with the use of different
accounting packages and audit assisted programme in a computerized environment.
In any computerized environment,
the following problems are common within the system of the company.
i.
Weakness
in the internal control system in most of computerized system their internal
control system is always weak because they don’t take cognizance of their
policies, safeguard the asset and secure as for as possible the competence and accuracy
of their records.
ii.
Fraud
is common in a computerized accounting system because it is difficult to detect
fraud in a computerized accounting system, unless special attention is paid to
some technical area in the system fraud cannot be detected.
iii.
Use
of program by an authorized person in another problem that is associated with
the use of computerized accounting and audit system.
iv.
Use
of unqualified personal. Due to the fact that the appointed of staff this day
base on “man know man” it is difficult to have a qualified person handling the
job in a computerized environment.
v.
Segregation
of duties: It is common to every company that is operating a computerized
system to be responsible for the operating and processing of various transactions
that ought to have been performed by various staff by a single staff.
1.4 JUSTIFICATION OF THE STUDY
The justification of the study
is to identify the possible benefits that the study of computerized audit
system will bring to the management of Wema Bank Nigeria Plc, Investors
(President and potential) and the Nigeria economy as a whole.
This project is to make
clear the merit of computerized audit system in Nigeria especially in banking industries.
Secondly, this study is
to show how computerized audit system helps the management in bringing about
greater efficiency and effective use of resources.
Thirdly, this study
reveal the importance of internal control system in the operation of the
company in a computerized audit system, it is the level of internal control
that will enable the auditor whether to rely on the information supplied in a
company.
Lastly, the study will
unmask the deficiencies in the manual or conventional auditing practices in
Nigeria particularly in banking industry as applicable to Wema Bank Nigeria Plc
1.5 RESEARCH METHODOLOGY
This research work zero
on the internal control system out in place by the management of the company,
it is this control that win dictate the effectiveness and efficiency of the
management as well as the quality of the work being performed by this
personnel.
The study also try to
compare the manual audit process with a computerized audit process which enable
the researcher to know the advantageous one out of the study or of the two
processing, therefore the whole work is all about audit.
Lastly, the study will be
limited in a scope to evaluate a bank until unit as an independent or separate department
in the banking industry (Wema banks of Nigeria plc as a case study). The
banking industry from the core of Nigeria economy and as such we have a high
rate of fraud in the banking operation
1.6 SCOPE OF THE STUDY
This study will be
limited in scope to evaluate a bank audit as an independent or separate
department in the banking industries (Wema Bank plc a case study). The banking
industry from the core of the Nigeria economy and as such we have a high rate
of fraud in the banking operation.
Also this research work
zero on the internal control system put in place by the management of the
company’s, it is this control that will dictate the effectiveness and
effectiveness and efficiency of the management as well as the quality of the
work being performed by this personnel.
The study also try to
compare the manual audit process with a computerized audit process which enable
the researcher to know the advantageous one out of the study or of the two
processing, therefore the whole work is all about audit.
1.7 LIMITATION OF THE STUDY
There are many
constraints to this study among of them are financial constraints which has
limited the number of trip. I have to make to the place of study. Another one
is the time constraints as there is a deadline for the submission and defense
of the project work. Also, materials to be used are limited and some
information needed was unable to be received a s a result of duty of secrecy in
the banking industry.
However, adequate care
must be taken to ensure that then above limitation do not jeopardize the quality
and validity of the findings.
1.8 LITERATURE REVIEW
In this section, a proper
study of the structure of bank will be examined as applicable to Wema bank
Nigeria Plc. The nature of the audit system and the related control in
computerized audit environment in banking industry
According to banking
decree promulgated in 1969 a bank means clay person who carries on banking
business.
In the same Wema bank
Nigeria Plc was incorporated in 18th November, 1981 and engaged in
all aspect of commercial banking. The bank has been describe as a private profit
seeking financial institution.
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