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IMPROVING THE EFFECTIVENESS OF ACCOUNTING SYSTEM IN EDUCATION SECTOR

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IMPROVING THE EFFECTIVENESS OF ACCOUNTING SYSTEM IN EDUCATION SECTOR: A CASE STUDY OF AUCHI POLYTECHNIC, AUCHI

 

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF STUDY

Accounting aims, as an information system, to provide various users with different forms of useful information to meet their various needs. Therefore, accounting seeks to take advantage of the surrounding circumstances in order to improve the quality and quantity of information and the delivery mechanism to users. The relationship between accounting and the computer began in the sixties of the last century. This relationship continued to evolve, and expanded in the eighties of the last century due to the development of the network and decision-support systems when it took a broader dimension and more flexible known as the computerization of accounting.

Recently, as a result, several accounting software developed to be popular on the shelves (off the shelf) shops to become accessible to most interested in them at reasonable cost. (Mash’hour, 2012). On the other hand, although there are some organizations that prefer to develop their own programs, either by themselves or through professionals, multi business organizations recently adopted the use of comprehensive business systems contain several sub-systems including accounting system.

There may be good policy system accounting, but when it comes to implementation it is not really of which are some factors that are responsible for this. For the purpose of this study, accounting system that was evaluated will be includes in management of revenue and disbursement of the resources. The basic fact is that whatever the act of misappropriation or mismanagement, it will take either of these two ways. One of those focused is how the accounting system operates and it is in compliance with guiding principles of accounting profession. If so, are the principles in practices. 

In order to appreciate the magnitude of services required from the accountant and management staff, there are different types of account that are maintained, such accounts are: balance sheet, income and expenditure, statement of cash flow, fixed assets accounts, income from academic operation accounts, debtors and creditors account as well. The study in this regard wishes to examine improving the effectiveness of accounting system in education sector.

1.2 STATEMENT OF THE PROBLEM

Currently, the world and human life has been transformed from information age to a knowledge age (Curtis, 2015), and knowledge has been recognised as the most valuable asset. In fact, knowledge is not impersonal like money and does not reside in a book, a data bank or a software program (Choe, 2016). Choe believed that knowledge is always embodied in a person, taught and learned by a person, used or misused by a person. Accounting information is an unbiased tool for an effective administration. Poor accounting information jeopardizes administrative effectiveness, which makes managers malnourished administratively especially in Nigerian construction industry. The consequence of this has been the current distressed syndrome that Nigerian education sector are facing. Huber (2015) stressed that organization must learn to manage their intellectual assets (i.e. knowledge) in order to survive and compete in the ‘knowledge society’. Indeed, knowledge management is concerned with the exploitation and development of the knowledge assets (Chang, 2011). It is on these premises that the study wishes to examine the effectiveness of accounting system in the education sector.

1.3 AIMS AND OBJECTIVES OF THE STUDY

The main aim of the research work is to examine the ways of improving the effectiveness of accounting system in education sector. Other specific objectives of study include:

1.  To examine the effect of accounting system on the allocation of resource in the education sector in Nigeria.

2.  To examine the role of effective accounting system in fraud detection and prevention in Auchi polytechnic.

3.  To examine the relationship between accounting system and the development of the educational sector of Nigeria.

4.  To investigate on the factors affecting effective accounting system in the educational sector of Nigeria.

5.  To proffer solution to the above stated problems

1.4 RESEARCH QUESTIONS

The study came up with research questions so as to ascertain the above stated objectives. The research questions for the study are stated below as follows:

1.  What is the effect of accounting system on the allocation of resource in the education sector in Nigeria?

2.  What is the role of effective accounting system in fraud detection and prevention in Auchi polytechnic?

3.  What is the relationship between accounting system and the development of the educational sector of Nigeria?

4.  What are the factors affecting effective accounting system in the educational sector of Nigeria?

1.5 STATEMENT OF RESEARCH HYPOTHESIS

H0: effective accounting system does not improve the education sector in Nigeria

H1: effective accounting system improves the education sector in Nigeria

1.6 SIGNIFICANCE OF STUDY

The study on improving the effectiveness of accounting system in education sector is significant in that; it will discuss all the areas of accounting lapses in the educational sector of Nigeria, it will also proffer solution to the problem faced by the education sector in proper record keeping and resource location. Finally the study will be of great assistance to the existing literature and to other research students that wishes to carryout similar research on the above topic.

1.7 SCOPE OF STUDY

The study on improving the effectiveness of accounting system in education sector will be limited to Auchi polytechnic, Auchi. The research work will cover the areas of the use of accounting system and its role in proper record keeping in Auchi polytechnic, Auchi.

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