THE RELEVANCE OF ACCOUNTING RECORDS AND SURVIVAL OF BUSINESS ENTERPRISES

1.2     STATEMENT OF THE PROBLEM

The problem Nigeria Insurance has a long history. The Nigeria insurance industry has of late been faced with decreased profitabilities.

Generally the market for insurance companies appeared to be saturated. Also insurance companies is compelled with the facts that there are back log of unsettled claims, fraud, embezzlement and poor decision making. Customers have lost confidence in insurance companies services.

The surviving and performing firms require extreme efficiency in their operations. The advert of the computer system has filled this gap.

The problem which this research project sought is to discover, whether there is any significant difference, in terms of profit maximization in insurance companies as a result of the introduction of computers.

1.3     OBJECTIVES OF THE STUDY

This study is designed to achieve the following:

(1)     To examine the impact of computerized accounting system on

profit ability and operational performance of NICON.

(2)     To asses the benefits and usefulness of internal auditing system

to national insurance companies.

(3)     To find out if checks and balances has contributed to the profitability of insurance company

(4)     To compare manual computerized accounting system in terms

of cost and efficiency.

1.4     RESEARCH QUESTIONS 

The problems of this study could be taken down to research questions that will guide the researchers in addressing it properly. These are:

(1)   Has the profit margin of NICON improve with the introduction of  computer in the corporation?

• Is the corporation operational performance and efficiency enhanced by the introduction of computer in its operation?
• Has the introduction of computer led to accurate and timely production?
  • RESEARCH HYPOTHESES
• Ho: There is no significant relation between profitability and computerized accounting system.
• There is no significant positive relationship between operational performance and introduction of computerized accounting system.
  • SIGNIFICANCE OF THE STUDY

The need to computerized company accounting system will be seen in the light of the following:

(1)     it will help to reduce unemployment and improve the

general welfare of the people. Provides dependable data to government for good planning.

(2)     it will constitute and important document to insurance firm

that have not gone computerized and a possible improvement in their net earnings.

• It will form a good secondary material for researchers and students alike.

(4)     it will form researchers material for further research and

good academic material for both university and polytechnic students.

1.7     SCOPE AND LIMITATION OF THE STUDY

The study is specially designed to cover insurance Corporation with specific emphasis on NICON insurance co-operation of Nigeria.

The personnel under consideration will be the accounting and managerial staff of the company. NICON is chosen here because of its wide range of operation in the first to apply computer in its operation.

The study is limited to NICON insurance corporation which is the     sample study for generalization. It is further limited by time and finances.

1.8     ORGANIZATION OF THE STUDY

The study is organized into five chapters. Chapter one contains the background of the study, statement o the problems, objectives of the study, research questions, research hypotheses, significance of the study, scope and limitation of the study, organization of the study, definitions of terms, historical background of the study.

Chapter two contains the review of related literature. Chapter three consists of research methodology. Chapter four and five is all about the presentation and analysis of discussion, conclusions and recommendation.

1.9     DEFINITION OF TERMS USED IN THE STUDY

(a)     COMPUTER ASSISTING AUDITING TECHNIQUES

This is defined as the purpose of written computer programmes of other techniques such as packs where and auditor uses the computer to assist him in his evidence gathering activities.

(b)     COMPUTER AUDIT PROGRAM: This is a defined as a programme which will examine the content of a client computer files (Akzeen, 1999:411).

(c)     LANGUAGE: This is the coding system by a programmer which can be input when it occurs (Longe) 1998:424.

(d)     ONLINE: This is a system whereby each transaction can be processed (Seminar paper. Akwa Ibom State training course 1998:6).

SERVICE BUREAU: This can be defined as an organization offering data processing facilities to  other (Walker J. Kenneran,1946:4).

TEST PACKS: This is a sets of data used by auditor to text the operation a client computer programme (S trader et al 1941:3)

ACCOUNTING: This is "the process of identifying, measuring and communication economic information to permit informal judgment and decision by users f the information 1996:2).

ACCOUNTING INFORMATION: This refers to the data that are found in financial statement (A.A.A. 1966:5). Accounting as an information system consist of three elements, inputs processing of the inputs and the output.

 COMPUTER: Computer can be described as an electronic devices capable of solving problems by accepting and performing prescribed operations on the date and supplying the results of these operations all without intervention of human operator's (Peter et al 1994:227).

ACCOUNTING INFORMATION SYSTEM: In a set of human and capital resources within an organization, which is responsible for the preparation of financial information obtained from the collection and processing of transaction data" (Robert H.Chendid,1981:166).

CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1     INTRODUCTION

In recent years, computer have been extensively used in processing accounting information, and in preparation of financial reports. In business the application of computers is wide and varied. Computers are used in stock control, payroll, accounting, credit control, banking services, etc.

The application of computers is inevitable in this age, the theoretical background for the study, this chapter was designed to review, opinions and ascertain of relevant authors and contributions in textbook, journal periodical and some sub-topics under consideration were: corporation goals concept of accounting information; application of computers in business, benefits of computer in insurance industry etc