Reference code: C096
ABSTRACT
The purpose of this paper is to focus on the impact of IT related on corporate financial reporting function and to contribute to the body of knowledge about to what extent IT affects the ability to solve accounting tasks in the banking sector. The relationship between IT and accounting practices was investigated qualitatively using a case study (Guaranty Trust bank plc.) and we will measure the impact of IT on corporate financial reporting. The research was carried through the use of questionnaires, in which 120 was administered to staff of Guaranty Trust bank plc Bayelsa with 20 not returned and the data technique used was the Pearson Product Moment Correlation which measured the relationship between the two variables information technology (x), and corporate financial reporting (y), from the field survey, coupled with the research hypotheses, it was observed that there is a averagely positive relationship between IT and CFR, hence, for the banking industry IT to be effective, positive investment has to be made towards to the IT segment of the bank. It was also observed that IT also has a very strong relationship with the credibility of financial reports, the more effective the banks IT systems are the more will stakeholders of the banks will rely on the financial statement. It is recommended that the banks must be focused in terms of their needs and using the right technology to achieve their goals, which is to ensure that accuracy of financial reports because it determines decision making. In conclusion IT allows the banking industry to process large amounts of financial information and process it quickly through the accounting system. Quicker processing times for individual transactions has also lessened the amount of time needed to close out each accounting period. Month- or year-end closing periods can be especially tasking ing on accounting departments, resulting in longer hours and higher labor expense. Shortening this time period aids the bank in cost control, which increases overall company efficiency.
BACKGROUND TO THE STUDY
...................... According to Paul, (1990), the rapid growth of networked information systems also creates threats to the security of financial market infrastructure if the trustworthiness of those networks is permitted to decline as their scope .and today, the term information has ballooned to encompass many aspects of computing and technology, and the term has become very recognizable. IT professionals perform a variety of duties that range from installing applications to designing complex computer networks and information databases.
A few of the duties that IT professionals perform may include data management, networking, engineering computer hardware, database and software design, as well as the management and administration of entire systems. Information technology is starting to spread farther than the conventional personal computer and network technology, and more into integrations of other technologies such as the use of cell phones, televisions, automobiles, and more, which is increasing the demand for such jobs (Williams, 1999).
This global integration and mass market reach is creating a huge potential market for financial services. Some new financial service providers are developing wholly new information systems based on Internet standards and as a result, are achieving rapid growth with low overheads (Erik Brnjolfsson, 1997). The most dramatic progress in this area has been achieved with online stock trading through discount brokerage firms, (Hagg, 2005). It was not very long ago that the field of IT only consisted of a single computer operator who stored data on a magnetic tape and then placed it in storage. Times have changed drastically in the field of technology from its inception several years ago.
The field today typically includes a chief Information Officer and several individuals who work together to achieve their goals. Years ago there was simply a single operator who performed all the tasks related to this form of technology. Today the job outlook for people interested in this field is very good with data security and server specialists among the highest paid in the field, those with the needed skills and a keen interest in IT stand to earn a substantial annual income.(Steven, 1995).
FASB (2008), International Financial Reporting Standards (IFRS) are standards and interpretations adopted by the International Accounting Standards Board (IASB). IFRS financial statements consist of a balance sheet, income statement, statement in changes of equity or statement of recognized income, cash flow statement, and notes. The impact of International Financial Reporting Standards on technology should not be an issue to be overlooked. By 2011 the entire world, including the United States could potentially using IFRS to some extent viewing the financial reporting standards change as simply as a technical change could lead to costly rework for processes and programs.
In conclusion with the increasing complexity of services offered comes greater complexity in the risk management process associated with those services. In addition, advances in technology permit a greater volume and velocity of transaction processing to take place. If responsibility for security for new projects that involve substantially greater risk than earlier undertakings is not clearly assigned or the implementation of security seems to undermine the chances for attaining the desired business objective, adequate security may never be put encryption in place. For example, the design of secure applications using encryption technology can be very slow, expensive and difficult.
Because they are also complex, encryption applications are likely to contain design flaws that can only be discovered through extensive, expensive testing ............................
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.0 Background to the study…...... 1
1.1 Statement of Problem……….. 4
1.2 Research Question…………… 5
1.3 Research objectives………… 6
1.4 Statement of hypothesis…… 6
1.5 Significance of study………… 6
1.6 Scope of the study…….…… 7
1.7 Limitation of study…………… 8
1.8 Definition of terms ………… 9
1.9 Historical background …… 9
CHAPTER TWO: LITERATURE REVIEW.
2.0 Introduction…………………………………… 10
2.1 Review of information technology…… ..… 12
2.2 Evolution of information technology…………. 14
2.3 Corporate financial reporting……………… 16
2.4 Impact of internet on CFR…………………… 18
2.5 Impact of information technology on internal auditing...27
2.6 A review on financial accounting report………….............27
2.7 Financial performance as a basis for investors forecasts.. 28
2.8 The users of the regulated financial statements..... 29
2.9 Financial reporting as a prime source of financial analysis. 31
2.10 Quantitative characteristics of financial reporting information 33
2.11 The relevance and usefulness of accounting information 36
2.12 The effect of computer process on financial statement…. 37
2.13 The effect of IT on the security of financial information 39
2.14 The development of IT in the banking industry………………….… 45
2.15 Computer technology in the banking industries…………………..… 46
2.16 The view on electronic banking…………………………………… 49
2.17 Electronic banking and the common banking product……………. 51
2.18 Telephone and PC banking products……………………………… 52
2.19 The card system…………………………………….……………. 52
2.20 The automated teller machine (ATM)……………………………… 53
2.21 The entry of the Nigeria banks into electronic banking……… 54
2.22 Threats of Cyber-Crimes on the Nigerian Banking Premises… 56
2.23 Globalization of IT and Nigeria commercial bank……………….… 57
2.24 Impact of information technology on corporate financial reporting 59
CHAPTER THREE: RESEARCH METHODOLOGY
3.0 Introduction………… 65
3.1 Research Design……………. 65
3.2 Study population…………………… 65
3.3 Sampling technique……….…………… 66
3.4 Source of data collection…… 66
3.5 Research instrument………… 67
3.6 validity of research instrument……………………… 67
3.7 Reliability of research instrument………………… 68
3.8 Method data analysis and presentation………… 68
3.9 Test of hypothesis…………………………………………………….. 69
CHAPTER FOUR: DATA ANALYSIS, PRESENTATION AND ANALYSIS
4.0 Introduction……………………………… 70
4.1 Data presentation analysis 70
4.2 Main question analysis……… 71
4.3 Test of hypothesis………………… 81
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
5.0 Introduction…………………… 84
5.1 Summary of findings…………… 84
5.2 Conclusion…………………… 85
5.3 Research findings …………… 86
5.4 Recommendation…………… 87
BIBLIOGRAPHY 90
Reference code: C096
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Reference code: C096
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