CHAPTER ONE
INTRODUCTION
1.0 BACKGROUND OF THE STUDY
In the ancient days, human activities were relatively easy. The
difficulties posed by nature then, were considerably simple and demanded
solution of relative simplicity.
The compounded problems of man and his way to solve them necessitated
the inventors of machine i.e. computer. Since the invention of the
first machine, the world has experienced a tremendous degree of
advancement in technology and one for the machine invented for solving
complicated problems in the computer.
With increasing frequency, it is recognized that an understanding of
the computer how it influence accounting operations and it is benefits
to every accounting student and intend to work this world of advancing
technology cannot be over emphasized.
Due to the recent intends in accounting operations and the complexity
of these operations with the number of task to be performed constantly
on the increase, to day’s accountants are left with no option other than
to always device ways by which these increasing tasks could be
processed, more speedily and accurately so that there will be no loss of
information.
With the advent of computer many organizations have computerized
their accounting system. An example for such organization with
computerized accounting system is First Bank of Nigeria Plc.
1.1 STATEMENTOF THE PROBLEM
The computer is known for its speed and accuracy in processing
information, such speed and accuracy have been achieved manually or by
any other device.
It is expected that a computerized baking system will facilitate the
speed and accuracy of processing transaction of financial nature and
also reduces customer wasting time.
This has been achieved by virtue of technology, other countries where
customers service and general financial management have been
computerized whether it can be established is yet to be confirmed.
The fact of the matter which the researcher intends to study is:
a) Of what relevance is computerization accounting system.
b) Has there been a tremendous change in financial management and the entire system, since the establishment of computerization accounting system.
c) Though benefits are abound, could there be limitation of
computerization an organization accounting system? What could be done
to change the present situation.
d) Whether the computerization has improved the level of fraud and other misappropriation of fund in the organization.
1.2 OBJECTIVE OF THE STUDY
The need to minimized fraud and improve service to customers is one
of the primary important today, due to the increasing number of new
generation banks therefore, the main objectives of this study is to
asses:
a) The effectiveness of financial control in a computerized environment
b) Whether computerization has minimized the level of fraud and error in banking sectors.
c) Whether computerization has improved the profitability performance of the organization.
d) Whether it has increase speed in attending to customers'
needs and finally, effort will be made to recommend feasible banking
organization.
1.3 SIGNIFICANCE OF THE STUDY
In spite of numerous decrees, enactment and there have been increase
in the number of reported case of all kinds of misappropriation of
customers funds and properties in the public sectors. And this study
will bring enlightenment and be of great benefit to the entire country
at large, and the significance is as follows:
a) The computer will be serve as an eye opener for
organizations both private and public sectors, who have the intention of
computerizing its accounting system, but yet to know the benefits
attached to it.
b) Through this study, useful suggestion will be given out
to the management on how to improve in their financial report.
c) Performance of financial management and accountability
with the view of improving it in future will be assessed that can be of
benefit to the government and will serve as springboard for future used.
1.4 STATEMENT OF HYPOTHESIS
Thy hypothesis serve as the theoretical concepts on how the research
result would appear, therefore, they are guide to the researcher in
planning the course of inquiry in choosing the kind of data and examine
the result of study simply put, and the hypothesis states the
researcher’s expectation concerning the relationship between variables
in the problem.
Null Hypothesis Denoted by:
Ho: Computerization has improved financial control management.
Alternative Hypothesis Donated by
Hi: Computerization has not made any impact in financial control management.
1.5 SCOPE AND LIMITAION OF THE STUDY
Though the entire banks in Nigeria are almost computerized, the study
will spesifically look at the case as relevant to the First Bank of
Nigeria Plc. Kaduna state.
The research will also like to critically observe the impact of
computerization on the customers wasting time during paying and
withdrawal of cash or undergoing any transaction with the ATM machine
with the First Bank of Nigeria Plc.
1.6 HISTORICAL BACKGROUND OF FIRST BANK OF NIGERIA PLC.
The history of First bank of Nigeria Plc dates back to 1984 when the
Bank of British West Africa (First Bank of Nigeria Plc) opened its
branch office in Lagos.
First Bank of Nigeria Plc, leading financial institution in Nigeria
with the over a hundred years of Banking operation experience in the
industry. It founded by a shipping magnate from Liverpool, Sir, Alfred
Jones.
It commenced operation as a small bank in the office of Elder
Dumpster Company in Lagos and was incorporated as a limited liability
company in London on the 31st March,1894 with head office in Liverpool.
Under the corporate name of the Bank of British West Africa with a paid
up capital of 12,000 pounds sterling, it started business after it had
absorbed its predecessor, the Africa Banking Corporation in 1892.
In 1896, a branch was opened in Accra, Gold Coast (Ghana) while
another branch was established in Sierra-Leone in 1898. The third branch
in Nigeria was opened in the old Calabar in 1900 and two years later,
it services had extended to the Northern Nigeria with it Northern
regional Branch at Kaduna. The branch has experienced phenomenon growth
over the years with a share capital of 5.6 million naira in 1980, which
rose to 269 million naira ( including a bonus reserve of 53.8 million
naira) in 1995 at 500 million naira in 1998. the banks total assets
currently stand at 59.82 billion naira. At the commencement of operation
in 1894, it has a staff of six (6) comprising of three (3) Europeans
and three (3) Africans but today, the bank is virtually Nigerialized.
In its determination to identify with aspiration of the country, in
its March toward National development, the bank has had to continually
adjust its organization structure and corporate entity. It startes with
West Africa countries, the bank was incorporated locally in 1969 to
become standard bank of Nigeria Limited.
This was in response to the dictate of companies decree of 1968 and
there after, the participation of Nigerians in the management of the
bank became a corporate policy. Further changes in the name of the bank
were made in 1979 and 1992 to first Bank of Nigeria Limited and also to
First Bank of Nigeria Plc respectively .
First Bank of Nigeria Plc, has diversified into a wide range of
banking activities and services including, merchant and international
banking.
Today, the bank boast of magenificent head office in Lagos with a
branch network of 291 as well as alarge number of staffs and a
diversified loan port folio to various sector of the economy.
1.7 DEFINITION OF TERMS
i) Computer: This is defined as
electronic machine that accept data (in raw form) and instruction
through special input and devices and after processing in its internal
memory, produces a meaningful output and also computer can be defined
according to the Oxford Dictionary as an electronic machine that can be
supplied with a programme and can store and recall information and
perform various processes on it.
In addition to that, computer is an electro-mechanic device which is
capable of accepting data, processing data, and brings out result
meaningful way.
ii) Financial control: This is the
regulation of the flow of money through the enterprise and in
particular, with ensuring that cash is always available to pay debt when
fall due.
iii) Accounting: is the act of
recording, classifying, selecting, measuring, interpreting and
communicating financial data of an organization to enable user make
assessment and decisions, is also a discipline which comprises of set of
theories and concept for processing financial data into information.
Accounting records in monetary terms the flow of economic valve within
or between economic entities.
An accountant must not only be interested in record keeping alone but
in the application of his professional competency or knowledge and
skill in present accounting information to assist management in decision
making.
iv) System: It means the method of unifying personal activities, machine and materials to accomplish the objective of the enterprises.
v) Data: These are raw fact and
figures that are not correctly being used in a decision process and they
usually take the form of historical records that are record and filled
without immediate intent to reference for decision making.
vi) Bank: According to the encyclopedia
of the banking and finance, the terms “Bank” in its broadcast senses
may be applied to any organization engaged in any or all of the various
function of “Bank” i.e. receiving, collecting transferring, paying,
lending, investing, dealing, exchange and servicing (safe keeping of
deposits custodianship agency, trusteeship) of money and claim both
domestically and internationally.
vii) Management: can be defined as a
co-ordination of the all the resources through planning, organizing and
controlling so as to achieve organizational goals. And also can be
defined as an effective and efficient utilization of both human and
material resource to achieve the desired goal and objective in the
organization.
viii) Effective: This refers to the
successor otherwise in achieving objectives. It is therefore concerned
only with output usually; the objectives of the organization would be
specified in more details so that the measure of effectiveness is more
useful. The specification are; there will always be capacity for
interpretation, as with efficiency, effective is most important thing
about financial management, is that the degree of effectiveness says
nothing about how much was spend to achieve it either the project
services, may have cost what was budgeted or twice what was budgeted or
more that what it should have cost.
ix) Evaluation: is the act of considering something to decide how useful or valuable it is, or a document in which this is done.