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THE
IMPACT OF INFORMATION TECHNOLOGY IN ACCOUNTING SYSTEM (A CASE STUDY OF UNILEVER
NIGERIA PLC
CHAPTER
ONE
INTRODUCTION
1.1 BACKGROUND OF THE
STUDY
Before now, business
Success was built on the ability to move goods and services with speed and
accuracy. Today, information has become the fuel that powers business Success
.In contemporary Cooperate world, information technology is deployed to gain
competitive edge.
Information
technology has been defined as the processing and distribution of data using
computer hard ware, software, telecommunication, and digital electronic
(Encarta Encyclopedia: 2004).
Therefore it is now
obvious that computer component of information technology can no longer stand
alone without the combination of other component. However, management planning
and control responsibilities are also par amount to a successful enterprise and
they represent a mandatory of an Organization to progress and survive in today
highly unpredictable and competitive business environment. The projected plan
of operation must be decisive and dynamic timely, intelligent planning must be
predicated on current known fact and a thorough analysis and realistic approach
to inevitable Feature probabilities .These key requirement for planning
directions will lead to Business probability and an equitable return on
investment, which are the objective of a successful management.
The techniques and
mechanical tools required to accomplish the development of planning and control
objective are now available, but in many instances, appropriate management
organization, interest and progression in fully acknowledging their
utilizations unfortunately lacking. This is a dilemma that must be overcome.
In addition,
management control system must not be overlooked. It comprises; the plan of an
organization and all of the Coordinates methods and measures adopted within a
business safeguard its assets check the accuracy and reliability of its
accounting data, promote operational efficiency and encourage adherence to
prescribe managerial policy.
In other word, it
could be regarded as whole system of control, financial and otherwise,
establishment by the management in order to carry on the business of the
company or organization in an orderly manner, safeguard its assets and secure
as far as possible measures. The accuracy and reliability of its record for
planning measurements for performance and control purpose .
Information
technology is the technology used for study, understanding planning, design,
construction, testing, distribution, support and operation of software,
computers and computer related system that exist for the purpose of data,
information and knowledge processing.
Another definition of
the information technology (IT)is the industry has evolved include the study
science solution set for all aspect of data, information and knowledge
management, processing.
THE COMPANY
UNDERSTUDY
Unilever (formerly
known as lever brother) Nigeria plc (Rc113) is the largest surviving
manufacturing outfit in Nutria. The company in cooperated as a private company
in 1923 (as lever brothers Nigeria plc) to manufacture soaps based on local
palm oil. The company Strengthen it foot hold in the food and drink business by
merging with Lipton Nigeria limited in July (1985) and also merged with chase
brought products industry in December (1988) to become a giant in personal
product business.
In accordance with
Nigeria enterprises promotion degree of 1972and 1977, 40% of the company equity
is held by Nigeria citizens and institution, while the remaining 60% is held by
Unilever overseas holding limited , Lipton tea company limited and chase
borough product international limited.
Today Unilever Nigeria
plc is a leading company in the industrial sector, engages in the manufacturing
achere and marketing of wild range of household product.
1.2 STATEMENT OF
PROBLEMS
Management will often
worry about the cost(financial and social) of putting computer based system for
processing accounting data and generating accounting information. incident of
computer fraud. Problems that may be associated with real time online
operations. Errors of input (garbage in garbage out) (GIGO) Problems of system
errors. Problems that may be associated with the applications of computer based
audit procedures
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