CHAPTER ONE
INTRODUCTION
Computer has been over the years imposing a serious threat in the accounting system of organizations. In Nigeria of today, computers and computer technology are increasing becoming part of daily lives, especially now that the present government has general encouraged its inclusion in the school curriculum, even right from the primary education level. With the government’s hands stretched, every other person would appear to be finding ways on how to embrace knowledge in this discipline, no matter how little. These individual efforts by people, even though sponsored in some instances by organizations some of them work for, seem to have been yielding some fruitful results as it is now almost common – place to find people decoding series of computer – oriented technical jargons lither to alien to them.
Advancements and interests in computing have necessitated some people, who were not previously science – oriented, to go for more technical course on computer operation, computer programming, world – processing and spread sheet, key – purchasing, system analysis, systems design management, structured programming in series of languages; thereby making them more technically sound and useful to themselves on the part, and to the organizations they serve on the other. In industry as well, most establishments have their key operations fully computerized while a host of others patronize computer Bureaux for the installation and implication of some of their services like payroll, sales ledger, Accounts Receivable, General ledger, stock control, personnel Records, Inventory control, and so on.
To a large extent, therefore, the result of all these is that increased awareness has been created about computers and that the technology stands for almost through out the nation. On the other hands computer are just tools used in getting information record and retrieved the fastest way possible for subsequent use by the management through the use of electronic data processing with the three main concepts being:
- Input
- Process and
- Out put
As a result of this development, there seem to be an explosion in the acquisition and use of computers in Nigeria, particularly among banks. It is now in vogue for bank to rely on the availability and use of computer facilities as an advertising medium each for advertising the quality of services rendered by the bank. Banks and Airlines, the world over have shown great dependency on computer should a survey be carried out on how long companies, industrial group could function effectively in the event of services data processing disaster, the bank will top the table. As the bank become more dependent on computers together, process and report information, so do they become more vulnerable to the consequences of information loss, human error, equipment failure, nature disaster or improper use by unauthorized individuals which could lead to loss of vital information
A failure or accident involving a bank’s computer system can have far-reaching repercussion on the economy of this country and that of Nigeria public at large due to the central role of banks in the Nigeria economy. Dishonest users has been using the sophistication and speed of computers to their advantage in the planning and execution of computer aided fraud. Hence, the issue of computer security in our bank should be given total commitment by the management of the united Bank for Africa (UBA) PLC. The management of UBA must be aware of the potential problems and provide funding for the determination of the possible risk and protective measures needed to counteract them. Increase computer sophistication often calls for sophisticated security procedures.
1.1 STATEMENT OF RESULT
In Nigeria, there has been a lot of misconception about computer and its attendant effects on the banking sector. Some had gone as far as saying that the impersonal effect associate with installation of computer into banks will eventually lead to the demise of these banks while this is not altogether false. There are also those that think that compute in banks is a welcome development that had been long
awaited for.
However, what exponents against computer people do not knows is that problems of computerization of our banks are numerous ranging form lack of adequate application plan, shortage of finance and manpower to lack of basic necessities like electric power supply.
An attempt is made by the researcher as to finding out what the real concept of computer is.
1.2 PURPOSE OF THE STUDY
The purpose of this study is to identify the accounting implication of computer installation people continued to mention the positive effect of computer installation in our various organizations without unfolding some of the implications involved in it. the study therefore, is designed to review some of these negative effects of computer installation in our organization which include:
(a) Fraud: the CIFA” observe that as companies operation become dependent on computer systems. The possibility of fraudulently converting cash or goods or of defrauding the shareholders and others becomes increasingly possible danger of fraud through the use of computer installed remain undetectable and increase where it is perpetuated by trusted management personnel involving seemingly valid transactions. On computer fraud, Jacobs” warns this, beware of the computer. It can make embezzlement easier to accomplish and harder to detect.
(b) Unemployment: Computer creates unemployment in that, the job that thirty (30) people suppose to do can be easily done by one (1) person with the used of computer.
(c) Loss of accounting information’s due to data processing disaster.
(d) Loss due to human error, equipment failure or improper use by unauthorized individuals.
1.3 SIGNIFICANCE OF THE STUDY
Computer installation become more vulnerable to the consequences of information loss due to human error, equipment failure, natural disaster or improper use by unauthorized individuals. Because of the central role of the bank in the Nigeria economy, a failure or accident at the bank’s computer system can have a far-reaching repercussion on the economy of this country secondly, customers, outsiders Account balance must be up-to – date otherwise the bank are bound to run into problems of overdrawn accounts. Thirdly, information loss could have a great impact on the bank. Fourthly, competitors can mess a bank up if their information is divulged to outstanding. Finally, how much will it cost a bank to replace the computer Hardware? The commercial software and the customized software it is lost through theft or nature disaster.