Topic: FINANCIAL CONTROL IN A COMPUTERIZED ACCOUNTING SYSTEM (A CASE STUDY OF FIRST BANK OF NIGERIA PLC)

Chapter One

INTRODUCTION

1.1 Background of the Study

In the last few decades, business activities have not only grown bigger and very much complex, but things happen even faster than expected, the combination of complexity, size and faster action and reaction generated a view for new management tools, especially tools for converting the large and complex volume of business data into useful and meaningful terms to assist management in decision making. The processing of business data and the delivery of information using there machines is known as “AUTOMATIC DATA PROCESSING” OR “COMPUTERISED OPERATIONS”. The effectiveness of computer depends on the ability of the user. Inherently the computer has no creative ability than the screw-driver or any simple machine. The fundamental power is it’s ability absorb a mountain data, manipulate the data, and bring out the results in a summarized meaningful form, quickly accurately for management use. The entire accounting and management function started in a manual form where the process of accounting data and information was provided in manual form by human beings. This system of providing information manually had it’s short comings later, the use of punched cards was introduced, which involves the use of electromechanically device for the processing of data. This method of processing was later replaced by computer which is made up of processing.

1.2 Statement of Problem

The computer is know for it’s speed and accuracy in processing information such speed and accuracy have not been achieved manually or by any other device. It is expected that a computerized banking system will facilitate the speed and accuracy of processing transactions of financial nature and also reduces customers waiting time. This has been achieved by virtue of technology, other countries where customers services and general financial control have been computerized whether it can be established is yet to be confirmed. The fact of the matter which the researcher intends to study are: - - Of what relevance is computerization accounting system. - Has there been a tremendous change in financial control and the entire system since the establishment of computerized system. - Though benefits are bound could there be limitation of computerizing an organizations accounting system. - What could be done to change the present situation data using electronic devices Undoubtedly, the computer therefore, can be regarded as the most powerful management tool ever developed. Infact, it has become a tool for most managers who have learnt to use it. This can be seen from the fact that most of our banks, mainly profit oriented organization are operating computerized system now. Therefore, an understanding of the computer of the amount of time and of the step it takes to accomplish a task from the time the idea was taken up untill the final output has been received by the uses or accountant has made interface between accounting and the system and programming funding more meaningful to the accountant.

1.3 Aim and Objectives of the Study

The need to minimized fraud and improve service to customers is very important today, due to the increasing numbers of new generation banks therefore, the objective of this study is to assess: - (a) The effectiveness of financial control in a computerized environment. (b) Whether computerization has minimized the level of fraud. (c) Whether computerization has improve the profitability performance of the organization, and (d) Whether it has increase speed in attending to customers needs And finally, effort will be made to recommend feasible banking organization.

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