1. PEPPLE BELEMA SUSAN
DE.2014/4242
DEPARTMENT OF ACCOUNTANCY
FACULTY OF MANAGEMENT SCIENCES
RIVERS STATE UNIVERSITY OF SCIENCE AND
TECHNOLOGY
TOPIC: THE APPLICATION OF ICT IN ACCOUNTANCY

2. 2
ABSTRACT
 ICT is used extensively in the delivery of career information and guidance. Such usage covers a
 wide range of applications.
 −
 Key trends include its increased accessibility, its increased interactivity, and the more diffused
 origination of ICT-based resources.
 −
 The role of ICT in guidance can be seen in three ways: as a tool, as an alternative, or as an agent
 of change. The growth of websites and helplines as forms of technically mediated service
 delivery means that the potential of ICT as a change agent is now greater than ever before.
 −
 The telephone, websites and e-mail, alongside face-to-face facilities, could be alternative
 services; or they could be portals into a wide, flexible and well-harmonised network of services.
 Public policy may support or impede such harmonisation.
 −
 The potential roles of public policy in relation to ICT-based guidance and information provision
 include funding such provision as part of their general funding for guidance and information
 services; or confining their role to funding areas of market failure and/or to quality assurance.

3. INTRODUCTION
 In the recent past centuries, before the inception of Information and
Communications Technology (ICT), the accountants of an organization were
using a socially acceptable behavioural method of reporting accounting and
economic reports, carried out during accounting year ends, the preparation of
accounting records, book such as the profit and loss account, the balance sheet,
cash book, cash flow statement, income and expenditure accounts.
 The application of Information and Communication Technology (ICT),
on accounting practice in Nigeria has become a subject of fundamental
importance and concerns to all business enterprise and indeed a prerequisite
for local and international competitiveness. It is obvious that the way
accountants plan and take decision on what and how to provide their service in
the accounting profession has been affected immensely by Information and
Communication Technology (ICT). This has continued to change the manner
in which accounting practice and their corporate relationships are organized
worldwide and the variety of innovative device available to improve and
facilitate the speed and quality service delivery.

4. ELVOLUTION
 The evolution of the application of ICT in the field of career information and guidance can be
 divided into four phases. The first was the
 mainframe
 phase, from the mid-1960s to the late 1970s. A
 number of computer-aided guidance systems were developed which demonstrated the potential of ICT.
 But the costs of direct interaction with the computer meant that the only systems which proved widely
 practicable in cost terms were based on batch processing. The static nature of this process and the
 feedback delays limited the implementation of such systems.
 The second was the
 microcomputer
 phase, from the early 1980s to the mid-1990s. The advent of
 the microcomputer made interactive usage much more economical, and also made it easier to develop and
 market limited software packages; its attractiveness grew as more powerful versions of the personal
 computer were developed. The result was a substantial growth in the number of computer-aided guidance
 systems, and in the extent of their usage. By the 1990s it was difficult to find a guidance service in any
 developed country which did not make use of such systems.
 The third was the
 web
 phase, in the late 1990s. The advent of the Internet meant that instead of
 free-standing systems located in career guidance centres, websites could be developed which individuals
 could access instantly from a wide variety of sites, including their homes. The ease of developing such
 websites produced a massive increase in their number; the ease of interconnecting them meant that they no
 4
 longer needed to be viewed as discrete entities. Rather than perceiving ICT solely as a service from
 external suppliers, guidance services began to develop their own websites.
 The fourth is the
 digital
 phase, which we are now entering. The hitherto separate “analogue
 streams” of the computer, the television and the telephone are merging into an integrated “digital river”
 (Cunningham & Fröschl, 1999). Individuals are now able to access the Internet not only through their
 personal computers but also through their televisions and mobile phones. Greatly enhanced bandwidth will
 shortly enhance its speed and its capacity for transmitting video and audio as well as text

5. WHAT IS CAREER
 Career is defined by the Oxford English Dictionary as a
person's "course or progress through life (or a distinct
portion of life)". In this definition career is understood to
relate to a range of aspects of an individual's life, learning
and work. Career is also frequently understood to relate to
the working aspects of an individual's life e.g. as in career
woman. A third way in which the term career is used to
describe an occupation or a profession that usually involves
special training or formal education,[1] and is considered to
be a person’s lifework.[2] In this case "a career" is seen as a
sequence of related jobs usually pursued within a single
industry or sector e.g. "a career in education" or "a career in
the building trade".

6. Accounting and application
software;
 This is a set of computer programs that help accountants of
the 21st century to carry out their task effectively. Prior to the
1960s, the accountants were perceived as a book-keeper whose
primary responsibility was ensuring that records were kept. The
accountants fought a constant battle against the failure and lost
of records. Computer provides more efficient means of keeping
the books, and they afforded the accountant quick access to
financial information for reporting purposes.
 Accounting software and applications such as peachtree,
SAP, sharepoint, DMS, Turbo tax, Microsoft dynamics, Quick
book, Oracle, spreadsheets, Global enterprise resource planning
system (ERPS)loctus (e-mail) etc has help accountants like
auditors perform their task effectively and efficiently.
 These software and applications have helped tremendously in
impacting on work group level and business process level.

7. Impact of ICT at business level.
 Information technology has made it possible to stay
plugged in and connected on a 24/7 basis. Documents
containing information regarding business operation
and performance can be access effortlessly.

8. AUDIT
 An audit is an official inspection of an organization
books, accounts and financial statement. Audit can be
carried out internally by the internal auditors in the entity
internal control department or externally by an
independent professional accountants (Auditor). It is
aimed at; providing information as to true and fairness of
the financial statement. It provide assurance of
accountability, identifies the weakness of the internal
control system and make recommendations.
 The report of the auditor form an opinion as to the
true and fairness of the financial statement. The report
provide users such as individuals, tax authority, investors,
creditors, Government etc as an assurance to rely upon for
their decision making based on the audit report.

9. Impact of ICT system on
auditing
 (a) Computerized accounting system.
 One of the greatest impact of ICT on accounting is the ability of companies (audit firms) to develop and use
computerized system to track, extract and report on financial transactions. It allow the auditor to report quickly and
easily for decision making.
 (b) Increase functionality.
 Computerized accounting system have improved upon the functionality of accounting departments by
increasing the timeliness of accounting information. Accountants can now prepare reports and operations and
analysis that give management an accurate picture of the client firm under review.
 (c ) Improved accuracy
 Errors and fraud are easily detected as it limit the number of accountants that have access to financial
information. Less access by accountants ensure that financial information is audited by only qualified accountants or
supervisors.
 (d) Reporting deadline/testing processing.
 Since the advent of ICT, accountants now process large volume of financial information quickly through the
use of some audit software such as CAAT.
 Reporting that might have taken an accountant months or years to prepare can be done within a relatively
short period of time, thereby aiding companies in cost control, which increase the companies overall efficiency.
 (e) Better external reporting
 Investors can be inform on time on the liquidity of the company, and make informed decision as to whether
to invest in the company or not. The existing shareholders will know the performance of the directors and how
efficient they are.

10. AUDITING IN ICT
ENVIRONMENT
 At this point, the auditor tries to evaluate the
effectiveness of the internal control system and the
weakness as well relating the manner in which
electronic datas are been processed, the time it take,
the nature and the extent to which they is compliance
base on substantive audit procedure. However, these
can not be effectively achieved without a prior
knowledge of computer system in planning,
organizing, directing and controlling

11. Summary
 Computer hardware
 These are the physical parts of computer that can be seen, felt and touch. It include the input and output
components firm like audit purchase large number of laptops to help them carry out their audit work at any point in
time. These have replace the use of desktops computer which can not be move from time to time.
 In order for audit firms to carry out their task effectively, timely and accurately, the accountants try to
construct and expand in their network base infrastructure. This may be increase in the bandwidth or the installation of
central network system with the help of Local Area Network (LAN). Various branches can loop network from the main
central network through the help of Virtual Private Network (VPN).
 ii. Computer softwares.
 These are the part of the computer system that can neither be seen nor touch but are fully active for the
smooth operation of the computer system. Softwares are programs that assist a particular task to be performed . firm
have software that suit their purpose such as DMS, Turbo tax etc. some software like CAAT are design to fit the audit
style of the professionals in the firm. Prior to the invent of these software, preparation of audit work paper is obsolete
as the software does that.
 iii. Audit software
 These are software that are developed to serve audit purposes, most often, the generalized audit software
(GAS). Design of audit program created for a particular audit will serve the needs of testing the audit programs of the
clients. These program have a function of checking calculations, examining of records, corrections and comparism of
clients records with the data obtained through other procedures.
 iv. Nature of evidence generated using ICT
 As a starting point, the evidence generated and or created using ICT are documentary evidence, since holding
otherwise, that the oral evidence would amount to standing logic on its head. ICT stands as a long lasting evidence
store house for clients companies.
 v. Capturing Economic Events
 Prior to the 1960s, the accountant was perceived as a bookkeeper whose primary responsibility was ensuring that
records were kept. The accountant fought a constant battle against the failure of records.
 On the low-value end of the spectrum falls the traditioned functions of identifying, measuring, recording accounting
transactions as they pierce the boundary of the entity. But now, most of these functions are routines and predictable,
cleverly written computer program can handle most of these activities.

12. Historical Background of Data
Processing Unit
 Data Processing Unit is a computer service centre of Bauchi State
Ministry of Finance, which came into existence as a result of the need
to computerize payment system in Bauchi State.
 It was created in 1998 as an affiliate office to the Ministry of Finance
with a view of carrying out the following duties:
 Procedures and systems in payment of wages and salaries.
 Payroll and payslip preparation.
 Internal control as regards wages and salaries.
 Treatment of staff advances in accounting for wages and salaries.
 The unit is headed by a director who ensures that proper attendance
records are maintained for employees under his control. Adequate
security, staff overtime, proper records of staff movement during
working hours, and how or when staff in their respective departments
get their salaries, are established and approved where necessary.


13. PROGRAMME (CURRICULUMNEED FOR ACCOUNTING EDUCATION The importance of accounting work cannot be over emphasized in every business establishment, be it
 government
 offices, parastatals, private companies, banks and other financial institutions (Agbata, 1999). Acco
 unting
 education is viewed as an area of study needed to equip the youths with knowledge, skills and attitu
 des necessary
 for efficient financial
 calculation required for occupational competence and economic self
 -
 relian
 ce (Ezeani,
 2011). Everyone exists
 in an economic world of taxes, budgets and use business services like insurance, banks
 and therefore benefit
 s
 from accounting education. Umunnah (19
 92) affirmed that the personal uses of accounting
 to students are
 ability to: interpret, analyze
 business papers and records in the capacity of a consumer; keep
 records to carry on a small business, become book
 -
 keeper or accountant in business houses or to
 set up self
 established business, and desire to keep records for personal use. However, accountancy is one of th
 e highly
 accredited professio
 nal courses and many qualified Secondary S
 chool graduates choose to pursue accounting
 education in institutions of
 higher learning as their chosen career.
 The National University Commission (NUC, 2011) carried out accreditation visitation to universities,
 of which
 during such visitations, they examine
 d
 the staff strength and quality, the courses offered and the syll
 abus
 (curriculum), the student’s enrolment, etc. In other words, the syllabus for Accounting Education ta
 ught in the
 universities where Accountancy programmes have been accredited by the NUC is similar in nature. Havi
 ng been
 accredited by the NUC, the stud
 ents
 will be
 qualified with the knowledge acquired so far for professional
 examinations.

14. ACCOUNTING INDUSTRY
 In the search of new organizational designs one can follow leads from literature. For example, rational choice/strategy
of making a different organization [4, 31], turbulent environments [9], industries in flux such as software engineering
[19], organizations that rest on intensive social networking [40, 41], and professional and high technology organization
[30]. Another approach is to draw a preliminary model of a new design, and then contrast it against organizations
across industries in order to identify a study population. The study reported here chose the latter approach because
one of its goals was to synthesize unsystematized literature of new designs into a new model of the non-traditional
organization.
 A dozen of small organizations from manufacturing, insurance, engineering, data services, and accounting were
investigated in terms of their hierarchy, departmentation, span of control, formalization, team work, management
promotion policies, pace of organizational change, and the extent of ICT usage, its perceived importance, kinds of ICT
uses and perceived effects of the uses. The extent of team work and ICT profile (inventory, perceived importance and
effects, and kinds of uses)--both important in the literature of new designs--showed (unexpectedly!) that the
accounting industry was a candidate for the full-fledged study rather than other industries.
 The accounting industry houses three major practices - account auditing, tax preparation and planning, and
consulting. The first one is the oldest and was responsible for starting the modern accounting industry in the U.S. in
the l9th century. The tax business was a later entrant, which made accountants compete with law firms. The consulting
practice started after WWII and have progressed from 'management advisory services' towards information systems
consulting. In the provision of consulting services accountants compete with several industries. [54, 55] Interestingly,
the industry has developed properties which mirror ideas from new organizational designs, such as, lower hierarchy
and centralization, team work, client orientation, and advanced applications of information practices and technology.
A tension between the professional and bureaucratic organization seems to constitute much of the industry's
organizational dynamics[2]. One line of divison runs through practices, with consulting being more organically
organized than auditing [58]. Stevens [55] argued that an increasing emphasis on consulting not only as practice but
also as an orientation was underway. Also, Quinn [42] argued that one of biggest accounting firms resembled a 'spider
web' organization with its flat structure, independent units, firm-wide communication and databases systems for
sharing information and knowledge, teamwork, and the sharing of responsibilities.

15. RESEARCH MODEL OF THE NON-
TRADITIONAL ORGANIZATION

16. DECISION MAKING PROCESS

17. SOURCES OF ACCOUNTING
INFORMATION
 The major sources of accounting information in an o
 rganization is the accounting unit, which is charge
 d with
 responsibility of systematically recording, analyzi
 ng, interpreting summarizing accounting information
 as the
 result of a process involving the preparation of so
 urce documents, the entry of basic data into subsid
 iary
 records to ledger, which is the formal record of da
 ta” Glantter and Underdown (1981, p. 91). Accountin
 g
 data therefore originates from financial transactio
 ns within the organization and source documents are
 the
 medium through which these transactions are recorde
 d. The source documents commonly used are sales and
 purchases invoice, Local Purchase Order (LPC) chequ
 e, cash receipt, cash book, test, etc.
 The accountant is the major supplier of accounting
 information required by the management in their
 planning and decision making processes. Users of th
 is information can acquire them through the primary
 or
 secondary sources.

18. MANAGEMENT
 One cannot conceive of any organization that does n
 ot have objectives. The primary struggle for any
 organization is to actualize corporate goal and thi
 s responsibility rest solely on the management. Alt
 hough
 the environmental factors may modify the degree of
 targeted objective, it must be realized that adequa
 te
 profit is necessary for survival and growth of the
 business. To achieve this objective, management mus
 t be
 able to plan, control and coordinate all the activi
 ties of the organization. This could only be possib
 le through
 the use of accounting information in virtually all
 their management decisions.

19. CONCLUSION
 Information technology is in modern business, especially regarding the accounting function.
 IT is essential in the field of accounting profession. This study however
 investigates the
 effect of ICT on accounting profession. The study found that the application of ICT has effect
 on efficiency of accounting practices in Nigeria and that the applications of ICT ensure
 timely and on time delivery of accounting work in Niger
 ia.
 Nowadays,
 acc
 ounting
 professionals sees IT as a comprehensible tool that is inseparable with accounting practice.
 The study thereby recommends that preparers of accounting information
 should
 adopt ICT in
 all aspect of accounting practice for effecti
 veness and transparency

20. DISCUSSION OF FINDINGS
 The study has proved that Information Communication Technology (ICT) has in so many
 ways enhance the effectiveness and efficient operation for accounting professional’s and
 ensure easily and timeous completion of accounting work as well command transparenc
 y and
 accountability in accounting practice. These findings are supported by the findings of
Sanusi
 (2011) who observed that no meaningful progress will be made in educational sector
without
 adjusting to technological (scientific) innovations and discoveri
 es. In addition,
 Ezeani, and
 Chukwunwendu (2014)
 revealed that the universities offering accounting education courses
 greatly valued the roles of ICT facilities in discharging their academic duties hence ICT
 facilities usage assist in the development of li
 fe and work place skills of an individual in the
 work environment.

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