AN EVALUATION OF THE EFFECTIVE USES OF ACCOUNTING INFORMATION TO IMPROVE ORGANIZATION PERFORMANCE (A CASE STUDY OF NITEL)
TABLE OF CONTENT
TITLE PAGE PAGES
TABLE OF CONTENT IV
1.0 INTRODUCTION 1
1.1 PURPOSE OF THE STUDY 3
1.2 AIMS AND OBJECTIVES OF THE STUDY 4
1.3 RESEARCH METHODOLOGY OF THE STUDY 4
1.4 SCOPE AND LIMITATION OF THE STUDY 5
1.5 STATEMENT OF THE PROBLEM OF THE STUDY 5
1.6 PLAN PF THE STUDY 6
2.0 INTRODUCTION 8
2.1 PROPOSAL GOODS AND OBJECTIVES 12
2.2 USER OF FINANCIAL ACCOUNTING 16
2.3 NITEL PLC ACCOUNTING SYSTEM 19
2.4 TELECOMMUNICATION SERVICES SYSTEM AND TELEPHONE SERVICES 23
2.5 FINDING AND REVENUE GENERATION 29
2.6 TRANSACTION CODE AND JOB DESCRIPTION 30
2.7 PERIODICAL REPORTS 36
2.8 INTERNAL AND EXTERNAL AUDITOR 36
2.9 TRAIL BALANCE AND RECONCILIATION 37
2.10 PRIVATELIZATION OF NIGERIA TELECOMMUNICATION LIMITED 38
3.0 METHODOLOGY AND RESEARCH DESIGN 40
3.1 INDETIFICATION OF POPULATION AND SAMPLE 41
3.2 AREA OF THE STUDY 42
3.3 METHOD OF DATA COLLECTION 42
3.4 DATA COLLECTION AND ADMINISTRATION 43
3.5 RESEARCH INSTRUMENT 44
3.6 VALIDATION OF RESEARCH INSTRUMENT 44
3.7 HYPOTHESIS 45
3.8 DATA ANALYSIS TECHNIQUE 45
4.0 DATA PRESENTATION AND ANALYSIS 46
4.1 INTRODUCTION 46
4.2 DATA ANALYSIS 47
4.3 TESTING OF HYPOTHESIS THROUGH CHI-SQUARE (X) METHOD 51
4.4 ANALYSIS OF QUESTIONNAIRE 58
5.0 SUMMARY, CONCLUSION AND RECOMMENDATION 60
5.1 SUMMARY 60
5.2 CONCLUSION 61
5.3 RECOMMENDATION 62
The elevation of public parastatable in Nigeria and their importance in providing social amenities cannot be overemphasized.
Therefore over a period of (30) thirty year these had been tremendous change in organization management and output of various organization effected by enacting Acts, edits and decrees.
However, the efficiency and effectiveness of theses parastatals depend on: Availability of fund: there must be enough capital for any organization for running of their account.
FOR EFFICIENT MANAGEMENT OF THE ORGANIZATION: There must be full efficient on the government.
ACCOUNTABILITY In RESPECT OF REVEUNE INCOME: There must be correct and presentable statement of account in any organization.
SOUNDNESS OF THE ACCOUNTING SYSTEM: There must be sound and correct accounting system. Availability of periodical finance report as management tools.
OVER ALL INTERNAL CONTROL SYSTEM: There must be corrects and planned internal control system by their auditor. Accounting can be describe as the science or acts of identifying recording, measuring and reporting of financial information. In other words accounting is a system which garther information for the purpose of recording and measuring economic events which take place in business.
An accounting is therefore, concern with the provision and interpretation of financial information by analysis and interpreting. This information those in control of business organization are able to base the decision on realistic accounting data rather team on institution.
BASIC QUESTION THAT INTENDS TO EXAMINE
1. What accounting policy is been put in place by your company?
2. Does accounting system computerized for easy and government administration?
3. Which mode of payment do your customer adopt in setting their bills?
4. Why do the customer prefers to pay through banks?
5. What is the level of independence of the internal audit?
6. how often do your organization make report to appropriate authorities?
7. What is the relationship between the internal auditor and external auditor as it relates to humbling of NITEL Bank account?
The study of accounting may be divided unit two parts.
The bank keeping aspect which deals with the actual recording of business transaction these aspect deals with procedural matters.
The use analysis, interpretation and reporting of such records, that is relation financial result to the events which created them and framing the financial policy of firms.
Basic accounting equation; financial accounting is based on the equation.
CAPITAL = ASSET – LIABILITIES
1.1 THE PURPOSE OF THE STUDY
We have observed the rate at which fraud been perpetrated in either written or outside the parastatals and tried to imagine what is wrong with the accounting system and the overall internal control system.
Fraud is an internal misrepresentation of financial statement by one or more person among management, employee or third party or irregularities including the use of criminal deception to obtain an just or illegal advantages.
Fraud can be caused by:
1. Misappropriation or embezzlement cash and goods
2. Manipulation and falsification or accounts with an intent to defraud
3. Recording of transaction without substance
1.2 AIMS AND OBJECTIVE OF THE STUDY
The purpose of this project is to look in to existing standard and system of accounting including reporting as an appraisal to ensure sound internal control system and combat the menace of fraud on one uniform accounting system backed up by reliable reporting standard on the other hand.
1.3 RESEARCH MOTHODOLOGY OF THE STUDY
Research design is the basis plan which guide the data collected analysis phases of the research project. It is the framework which specified the type of data collection procedures in addition if the research design is collect, it will make sure that the information gathered is consistent with the objective of the study and the data are collected by accurate and moral procedure.
Moreover, the underlying principle that guide the conduct of this project was stated under the method of data collection. In the study, the ground theory I approach was adopted the school of through in favour of the approach is of opinion that the knowledge sough in any research is located in the data. Therefore, the work combined with prior set of research question.
1.4 SCOPE AND LIMITATION OF THE STUDY
This project centres mostly on accounting system with special attention to credit in respect of income generative and collection in order really detect how exactly fraud is being perpetrated, some key addressed to them some times to avoid questions.
1.5 STATEMENT OF PROBLEMS OF THE STUDY
The adequate and effectiveness of parastatals accounting system as a tool for management in its decision making processes the debt collection through a sound credit control system and internal control system liability to a particular fraud and that would be areas of focus, while making NITEL Plc case stud.
SIGNIFICANT OF THE STUDY
We have observed the rate at which fraud being perpetrated earlier within or outside the organization and tried to imagine what is wrong with the accounting system and the overall internal control system.
Fraud is an internal misrepresentation of financial statement by one or more persons among management, employees person among management employees or their party or irregularities involving the use of criminal deception to obtain on just or illegal advantages.
1.6 PLAN OF THE STUDY
This project is plan and arranged in to five (5) chapters.
Chapter one consists of introduction of the study, scope and limitation of the study, methodology of the study and plan of the study
Chapter two consist of literature review, Definition, user of financial accounting, finding and Revenue generation.
Chapter three consist of methodology and research design, data collection and Administration.
Chapter four consist of analysis and observation, of interview with workers.
Finally, Chapter five consist of summary, conclusion and recommendations, appendix and bibliography.
According to Mr. Akin Abolaji who defined accounting as a primary method of analysis based on a record of the exchange transaction and equivalent and is purposely designed to reveal certain aspect of the progress and status of the enterprises.
In addition, in a integrated set of record of an enterprises, accounting system it self is an analytical device and facilitate further by America Accounting Association.
Accounting is the process of identifying measuring and communication economic information to permit informed, judgment and decision by users of the information.
James fisher (1946) confirmed that the accounting users as financial statement have continued to be at the five front of users criticize and what appear to require not inflexible regulation but same uniform principle of accounting which will permit comparability. As a result there would be a reduction in the amount of unnecessary variation in financial reporting some variation in the above field which implied comparability.
He also argued that little study has been devoted to the problem of the indelibility of financial statement and many users behave that significant improvement be made in communication. There he recommendation that a presentation format which reflects the activities of the organization.
The public that can be understood by the recorder statement on accounting method and uniformly presented.
The public Account committee (PAC) of the house of common Canada considered the issue of the need to improve public accountability very careful and recommend the public performance reporting in it’s annual report to parliament in 1972.
The royal commission of financial statement management and accountability culture the advantage of performance reporting as better.
Public understanding of the purpose and use of large government, budgets, it could contribute to the better management in public official can explain in advance what they help to accomplish. They may be able to forcus more clearly on means and ways to treat those objectives and possibility of the public to scrutinize my motivate them to pay close attention to achieving planned result but lack of performance information is a serious pediment to understand and managing government programme and accountability less it’s liability for the good and bad performance.
Recognized two basis of account practice i.e accrual basis and cash basis and further define them as cash accounting. Cash accounting is the principle method of record public sector expenditure, it is the accounting method where by revenue and expenditure are reported in the period in which the related cash receipts and expenditure occur.
Accounting revenue is account of a business that state the amount of money received from sales, commission etc.
Accounting cost means total expenditure required to undertakes an activities it’s also mean economic cost.
Kolade Oshuna (1961) disclosed that there are three basis and committeemen basis and confirmed that the government in Nigeria was basis of accounting for three financial I statement. It also disclosed the variation in the statement interested and inter government. This makes effectives comparison impossible.
The account journal limit’s front page opinion suggested that the principle of the provision of informative accounts which are given consume as a means of satisfying the uniforms tax payers that expenditure has been very kept under control.
The report of the committee on concept of accounting application to a public sector in Australia stated the following as primarily objectives.
1. To provide information necessary for truthful, efficient, effective and economic management of an operation and of the resources entrusted to it’s e.g management control
2. To provide information to enable manager to report on the discharge of their responsibilities to administer truthful and effective programme, and to permit all public officers to report to the public on the result of government operation and the use of public fund i.e accountability to the public. The National Council on Government Accounting in (U.S.A) In 1979 purnished it’s report on research on government accounting and financial reporting and principle..