The Impact Of Computer Technology On

Accounting System And Its Effect On

Employment
 TABLE OF CONTENT

Title page

Approval page

Dedication

Abstract

Acknowledgement

Table of contents

List of figures

Chapter one

1.0 Introduction

1.1 Background of the study

1.2 State of the problem

1.3 Objectives of the study

1.4 Significance of the study

1.5 Scope and limitations of the study

1.6 Research Questions

1.7 Definition of terms

Chapter two

2.0 Literature review

2.1 Some applications of computer technology in

Nigeria

2.2 Union Response to the technological changes

2.3 Implications of technological changes on employees

2.4 Specific implication of computer application to

employment.

Chapter three

3.0 Research methodology

3.1 Research methodology used

3.2 Description of Respondents

3.3 Determination of sample size

3.4 Sources of Data

3.5 Methods of investigation

Chapter four

4.0 Presentation, analysis and interpretation of data

4.1 Data analysis

Chapter five

5.0 Summary of findings, conclusion and

recommendation

5.1 Summary of findings

5.2 Conclusion

5.3 Recommendation

Bibliography

Appendix

a. Survey questionnaire

b. Interview questionnaire

c. Chi-square distribution table

CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Days are when most accounting operations and decisions

that have to be made on or from them are on first hand

basis. This is because accounting operators and decision

makers are in close contact with such accounting

operations and as such, collected, analysed and

interpreted data from such operations for decision

making.

Today, as company and educational operations expand in

size and complexity, company executives grow further

removed from first hand contact with business scenes.

They are to rely increasingly on second hand information

about what is happening at the various stages of

business operations2, vis-à-vis research and

development, production, marketing and consumption of

goods and services. Since decisions that have to be

made by executives are of profound consequences and

have to be based on highly fragmented and typically

tenous information, then it is of great importance that

such second-hand information is from a very accurate

and reliable sources3.

According to A.$. fapohunda, to remedy these accurate

information difficulties in 1963, sears began establishing

their twenty – two regional computer centers covering the

entire unites states of America 4. initially, the regional

computer systems processed customers credit accounts

and general accounting data.

Later, merchandising and inventory information from

system were established to provide information that the

business accounting world and business operations are

also busy expanding their technological and industrial

bases 6 by breaking into new grounds and improving in

existing ones through the use of computers.

With the introduction of computer to many business

applications, those business areas that involve repeated

tasks which are often monotonous and fallible to human

errors (cash, inventory control, payroll and etc) are

increasingly being simplified accurately by combining the

cost, effectiveness, simplicity of use, efficiency, reliability

and accuracy of the computer to obtain, analyze and

interpret data information for efficient business decisions.

Nigerian business organizations being to grow in size,

business operations and processes become increasingly

complex, hence computers are being rapidly introduced to

cope with the overwhelming demands of business and

growth. Though the introduction of computer to many

facets of business operations is a welcome idea, its use is

further implicated on accounting system and as such

organizations need to strike a balance between

accounting areas to be manually operated so as to

control or limit the menance associated with

unemployment.

Some of the business operations to which computer has

been successfully introduced;-7

- Printing graphic designs of complicated nature.

- Payroll system.

- Billing system.

- Predict election result.

 - Mark examination results such as JAMB and

WAEC.

- Control inventories.

- Predict performance of an aircraft or missile still.

- On drawing boards.

- To calculate the critical path of most efficient

assignment of troops or problems and so on.

It therefore becomes important that technological

changes such as the introduction of computers in

organizations be carefully evaluated so that the gains in

technical efficiency are not made at the expense of the

well-being and integration of employees.8. In the

circumstances, then a study of the implication of

computer introduction to accounting system of business

operations is not only timely but mandatory so as to avoid

some of the problems associated with technological

changes in organizations.
This research is however, limited to the implication of

computer introduction to accounting system of business

operations using A.G. Leventis and Pak – Micro

Computer Centre as computerized model organizations.

1.1(a) HISTORICAL BACKGROUND OF A.G.

LEVENTIS PLC AND PAK-MICRO COMPUTERS

INTERNATIONAL LTD.

A.G. Leventis (Nigeria) PLC was incorporated in 1958.

This company went public in 1978, and is quoted on the

Nigeria Stock Exchange.

It provides properties, company secretarial and share

registration services. Industrial and public relations

services, legal services, financial management and other

services to all the companies under the group.

This company has an ultra modern and functional

electronic data processing centre in Lagos where most of

the group’s data are processed with an “OLIVETTI SP

600 Computer” which has a network of terminals located

at various departments/companies of Iddo House Head

Office data input and output. Some of the areas of

computer application include Accounts Receivable,

Inventory and General Ledger package used by A.G.

Leventis and company (Nig) PLC, Leventis Technical

PLC.

There is payroll system for the staff and all managers in

the group. Other areas of computer application include

inventory, billing and share registration.

Leventis stores – formerly a legal entity is now a division

of A.G. Leventis and company (Nig) PC after the

successful merger in 1995. This division has an “Olivetti

SP 600 computer located at Malu Road, Apapa which

handles the inventory control of Leventis stores

throughout the country as well as the account receivable

and general ledger of leventis stores.

Pak – Micro International Ltd is a group name with Data

Training Institute and Master Maintenance Under it. It has

its Headquarters at Lagos, 77 Ikorodu Road, Fadeyi.

Regional office in Enugu, 31 Ogui Road, Enugu.

Paks – Micro specializes in computer sales, installation,

maintenance, account receivable, inventory and share

registration, training software development and Bureau

services. Because of the nature of its business, the

company has the following sections sales, maintenance

and bureau services, software development laboratory,

training section (DPI). Each section has its own manager.

The master maintenance is a civil Engineer contracting

firm with its General Manager.

1.2 STATEMENT OF THE PROBLEM

The importance of personnel in the accounting section of

an organization cannot be over emphasized especially

when one remembers the facts that these personnel

support the organization from its small scale to the large

scale stage when it begins to introduce computers to

many of its hitherto manual operations.

However, an organization has the obligation of profit

making and as such promptness of information, accuracy,

speed, cost effectiveness, becomes prime factors to the

organizations.

The problem of this study is therefore to find out whether

or not the introduction of computer technology to

accounting systems of business operations has reduced

the output of the accounting sections at A.G. Leventis

PLC and Pak – Micro computer centre.

1.3 OBJECTIVES OF THE STUDY

The purpose of this research work is to find out and

evaluate the implication of computer introduction to

Accounting sections of business operation with particular

reference to A.G. Leventis PLC and Pak – Micro

International as some of the largest organizations in

Nigeria today.
The study will also attempt to find out the efficiency and

effectiveness of such application to overall management

capabilities in decision making.

1.4 SIGNIFICANCE OF THE STUDY

This research work provides a clear understanding of one

of the social implications of computer application on

accounting system. The information obtained will be

useful to management, consultants, about unions,

professional, students, shareholders, investors, institute

of higher learning, training managers, economist, the

government and so on.

The study will also be significant to other organizations

willing to computerize their accounting operations as well

as to A.G. Leventis Plc and Pak – Micro computer centre.

1.5 SCOPE AND LIMITATION OF STUDY

For the purpose of this study, the impact of computer

technology on accounting system will in scope be limited

to A.G. Levenits and Pak – micro Computer. Both of them

are of Enugu Branch. This is because of it’s many

computerized application areas and therefore makes for

better study.

The researcher encountered some problems which stood

as limitations to this study. Such problems include, time

available for this study, time to generate primary data

from such large organizations. Other limitations include

the rigor of having to move around Enugu and also

problem of combining, course work, research work and a

full time job among other things.

1.6 RESEARCH QUESTIONS

The following research questions form the basic postulate

of the study:-

1. Has computer introduction had any impact on

accounting system?

2. Has computer introduction made the

accountant’s job easier?

3. Has computer introduction provided more

accounting information with same staff?

4. Has computer introduction made the storing and

retrieval of accounting information faster.

5. Has computer introduction made the accountant

more efficient?

1.7 DEFINITION OF TERMS

The purpose of this section is to give conceptual

clarification of terms within the scope and limitation of the

study so as to avoid ambiguity of concepts used.

A.G.L. – A.G. Leventis and company (Nig.) Plc.

DATA – Coded information i.e. information that has been

captured for processing or recorded in any way 12.

E.D.P. – Electronic Data Processing.

PROGRAM – A list of instructions which is to be followed

by a computer to solve a given problem.

INPUT – The process of entering data into computer.

OUTPUT – The section of the computer needed to take

result out of computer.

SOFTWARE – Generic term applied to most non physical

aspects of computing i.e. programs, operating

systems, packages, compilers and to some

extent, systems in general.

P.M.I – Paks – Micro computer international ltd, Ogui

 Road, Enugu.

COMPUTER – A unique, sophisticated magnated

machine which has been carefully put

together in such a careful manner that

enables it to manipulate or handle any given

task, be it in Engineering, science, business

etc.

IMPLICATION – Implicate, enfold, entangle, involve,

something implied, or suggested as naturally

to be inferred. What is implied, hinted act or

suggested, but not expressed.

IMPACT – Effect

REFERENCES

1. A.H. Fapohunda, The utility of computer and

Marketing information in Retail Trade, in
management in Nigeria. Vol. 20 No 9, Nov/ec,
1984, pp. 32.
2. Ibid, pp.32 - 34
3. Ibid
4. Ibid
5. Ibid,
6. Ibid
7. D.C. Chukwu Effective computerization an
unpublished lecture Handout in Cs 604 at the
Enugu state university of science and technology
(Esut, 1992, p.187)
8. Dr. D.M. Akinnusi, “Technological changes in
development Economics: A study of the Application
of computer technology in Nigeria in management
in Nigeria, vol 27 No 3, June 1991, P.46.
9. Ibid, p. 46.
10. Daily champion, Thursday June 13th 1991, p.7
11. The Guardian, Sunday, March 25th, 1990 P.8.
12. John Moss, foundations of programming input T –
Nine limited, London 1978, P.124.
13. Ibid Pp, 126 – 127.
14. K.C Agbasi, introduction to computer science and
programming, ABIC Books and Equip Limited, P.10,
1992.
15. H.D. Cliffton, choosing and using computer
business books London, 1975, P.185.
16. Ibid P.179.
17. Op Cit.
18. The Lexican Webster Dictionary, Mario Pel,
published by Delair publishing company,
Incorporation, U.S.A, 1980, p. 481.

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