CHAPTER
ONE
INTRODUCTION
1.1 Background of the Study
When banks
suddenly collapse, the often resounding question is “what went wrong”. A
breakdown in the internal control system is the usual cause. Internal control
is a process that guides on banks and other companies towards achieving its
objectives. These objectives include operational efficiency and effectiveness,
reliability of financial reporting, and compliance with relevant laws and
regulations. Absence of these variables often results in banks failures.
Thus,
in managing and implementing an internal control system of a banking industry,
computerization of accounting system is crucial. An important question in the
field of accounting and management decision making concerns the fit of
accounting information system (AIS) with the banking requirements for
information , communication and control (Nicokou, 2000). The strength of
accounting information system can be evaluated by its impact on improvement of
banking decision-making, quality of accounting information, performance
evaluation, internal controls and facilitating banks transactions (Sardy,
Dastgir and Negad, 2008). Therefore regarding the above characteristics, the
effectiveness of accounting information system is important for banking
performance.
Computerized
accounting used computer to replace manual, achieve accounting afterwards,
reimbursement and auditing accounts and to replace part of the human brain need
to be completed by the accounting data, statistics analysis as well as provide
the decision-making process. Thus, development of accounting request is to
develop requirements while internal control in the banks is to protect the
security of banking assets, ensure complete and accurate data to facilitate the
effective implementation of management policies, improve operational
efficiency, control operational risks, prevent fraud from occurring and the
achievement of organizational goals and a key management system.
In
recent years, Access Bank attaches great importance to internal control and
issued a series of specifications and guidance to promote management decisions,
protect the property, integrity, security and accounting data that will ensure
banks carrying out various policies and implementation in order to improve
economic efficiency by taking all the systems, methods and ensure management
procedures as part of the accounting internal control. In other words, a
computerized accounting directs the management guidelines to ensure the
realization of double entry book keeping accounting and loan balance of the
basic principles and methods.
However,
the strengths and weaknesses of accounting information, processing computer
automation has brought challenges to the banks accounting system. The
computerized accounting system has brought to the bank, faster and efficiency
in processing data, automatic generation of accounting documents like invoices,
cheques and statement of accounts, more timely information, no more manual
processing of the data-all automatically been posted to the various ledger and
generate useful reports for management to make decisions. Equally, weaknesses
from the computerized system has brought power failures, computer viruses,
garbage- in garbage- out, and danger of computer fraud if proper level of
control and security whether internal or external are not properly been
instituted.
Furthermore,
with the larger reductions in the cost of hardware, software and availability
of user friendly accounting software package, it is relatively cheaper than
maintaining a manual accounting system. In other words, accounting system not
properly set up to meet the requirement of the business due to badly programmed
or inappropriate software or hardware or personnel problems can cause more
havoc.
Indeed,
a computerized accounting system to strengthen the internal control is
imperative. Computer use has changed the banking environment and accounting
documents in the form of a computerized accounting system. Since e-banking,
online transactions, the implementation of paperless transactions as each
transactions occurs, the relevant data relating to the transaction by the
banking staff entered into the computer and the computer automatically records
each transaction.
Indeed,
without the authorized personnel the use of computer and all the files, copy,
forgery, destructions of critical banking data will be rampant in the banking
industry. Therefore, computerized accounting system of internal control is not
only difficult, complex but also a variety of means to control the computer
technology.
Prior
researches have shown that accounting information system adoption does
increased banks performance, profitability and operations efficiency in
sub-Saharan Africa. In Nigeria, information society and the new computer tools
have allowed the Access Bank to make better use of her accounting system in her
relations with customers. In the same way, the development of electronic
banking allows the bank to save a lot of time in her transaction. Thus, the
present study attempts to provide some clarification of the relationship
between banks internal control, accounting system and performance of accounting
information system (AIS) especially on Access Bank performance and performance
management. The structure of section 2 reviews the relevant literature, gap in
literature and theoretical framework of analysis, section 3 describes the
empirical methodology, section 4 present results from the statistical analysis
of hypotheses, section 5 presents the discussion of the finding from the
statistical analysis and section 6 presents the summary and conclusion of this
study, provides limitations of the current study and points out some
recommendations for further research.
1.2 Statement of the Problem
The
issue of internal control system is topical following global fraudulent
financial reporting and accounting scandals in our banking industry. A
proactive preventive approach to the problem requires a critical evaluation of
existing internal control structures in banks to determine their capacity to
ensure that the banks activities are carried out in accordance with established
goals, policies and procedures.
The
problem of the study emerges that the used accounting system in Access Bank is
a very conventional one and must operate a new computerized system so as to
keep abreast of development and technical progress. (Elaiwi, 2009) confirmed
that using information technology has become the target of Access Bank which
encouraged competition and technological progress on the computerization of
information system where the system helps to plan, organize, control and
supervise.
The
research found through personnel interviews and previous studies some of the
obstacles to include, the inadequate internal framework of checks and balances
to ensure operational efficiency and effectiveness in Access Bank, while some
of the studies such as (Eke, 2009, Madumelu, 2011) took some of the obstacles
that leads to power failure, computer viruses, accounting scandals, in a
computerized accounting system in the Access Bank to include human resource and
administrative inefficiency.
If
accounting information system (AIS) design can be linked to financial
performance and financial performance linked to banking performance, the
analysis shows that infrastructural affect on the computerization of accounting
system in the Access Bank affects the internal control of the bank.
1.3 Objectives of the Study
The
study aims to know the followings;
1. To ascertain whether internal controls
provide adequate internal framework of checks and balances to ensure operational
efficiency and effectiveness Access Bank.
2. To ascertain whether internal controls
provides adequate documentation and updates of changes even as computer virus
and power failures occur in Access Bank.
3. To ascertain whether accounting scandals
is as a result of the incompetence of human resource in the computer operations
Access Bank.
4. To ascertain whether infrastructure
affects the administrative efficiency of the Access Bank operations.
1.4
Research Questions
The following
research questions will be used in solving the problems of the study. They
includes,
1. How does the management of internal
control provide adequate internal framework of checks and balances that ensure
operational efficiency and effectiveness in Access Bank?
2. To what extent is internal control system
in the Access Bank adequately documented and regularly updated as changes occur
due to computer viruses and power failures?
3. How does the human resources affect the
computerization of the accounting system in the Access Bank lead to accounting
scandals?
4. To what extent is infrastructural
development on the administrative efficiency affect the computerization of the
accounting system in Access Bank?
1.5 Statement of Hypotheses
Based on the
questions raised in the problem of the study the following hypotheses have been
formulated.
Ho 1. Internal control does not provide adequate
internal framework of checks and balances that ensure operational efficiency
and effectiveness in Access Bank.
Ha 1. Internal
control provides adequate internal framework of checks and balances that
ensures operational efficiency and effectiveness in Access Bank.
Ho 2. There is
no significant impact of human resource control on the computerization of the
accounting system as regards virus and power failures in Access Bank.
Ha 2. There is a
significant impact of human resource control on the computerization of the
accounting system as regards virus and power failures in the Access Bank.
Ho 3. There is
no significant impact of infrastructure in the computerization of the
accounting system as a result of administrative efficiency in Access Bank.
Ha 3. There is a
significant impact of infrastructure in the computerization of the accounting
system as a result of administrative efficiency in Access Bank.
1.6 Significance of the study
The
significance of the study came from theoretical and practical contribution
through revealing the importance of using the computerized accounting system of
internal control in the banking industry, so the decision makers keep pace with
technological development in the financial institutions within the global
village. The development of information technology helped banking staff to
achieve operational efficiency and effectiveness, financial reliability and accounting
balance. The contribution of this study is to encourage the decision makers in
the banking industry that using the computerized accounting system will lead to
a transition from scarcity of information to the state of abundance of
information, as well as to the quality of appropriate information that gives
objectivity and integrity.
While
the theoretical contribution of this study used new variables that the previous
studies didn’t use in measuring the dependent variables such as time, cost administrative
performance and decision for change. This study will also help in having the
possibility to implement a computerized accounting system in the banking
industry because of the savings of time, effort and cost. It will also help to
correct the obstacles that hinder the computerization of the accounting system
in the banking industry. The importance of this study also is to keep pace with
the technological developments in accounting as considered a system of
information specialized in generating the information data of an economic
nature. It will also serve as a reference point to academia’s and researchers.
1.7 Scope and Limitations of Study
The
scope covers the entire Access Bank Plc, Abakaliki branch. It will cover the
periods 2001-2011, a period of ten (10) years.
In
the course of the study, the researcher employed his best to ensure a genuine
and accepted research report that will be generally accepted. However, there
were some constraints that are met along the line, some of which were finance.
The researcher hadn’t enough money to carry on the project and the government and
university management was not willing to provide any assistance.
Time
also contributed to the delay of the work. This is because the time frame
required to complete the work was small, however, in spite of these numerous
constraints, I was able to make reasonable progress.
CHAPTER
TWO
REVIEW
OF RELATED LITERATURE
2.1 Conceptual Framework.
In
order to determine internal control efficiency evaluation principles, it is
important to analyze the conceptual framework of internal control. According to
the institute of internal controls (Taylor and Glezen, 2011, Ochulor, 2010),
internal control is an independent appraisal function established within the
banking industry to examine and evaluate its activities as a service to the
banking operations. By measuring the effectiveness of organizational controls,
it is an important managerial control device (Carmichael et al, 1996) which is directly linked to the banking structure and
the general rules of banking business (Cai, 1997).
Sawyer
(2007) stated that internal control is a systematic, objective appraisal by
internal auditors of the diverse operations and controls within an organization
to determine whether financial and operating information is accurate and
reliable, risks to the bank are identified and minimized, external regulations
and acceptable internal policies and procedures are followed, satisfactory
operating criteria are met, resources are used effectively and economically and
the banking objectives are effectively achieved.
Specifically,
control environment reflect the attitude and the policies of management in
regard with the internal audit in the economic unit. On the one hand, control
environment is influenced by the history and the culture of economic unit. On
the other hand, control environment has a pervasive influence on the way
banking activities are structured that sets a positive and supportive attitude
towards internal control and conscientious management (Aldridge and Colbert,
1994). In regard with risk assessment, it can be claimed that it is the
identification and analysis of relevant risks associated with achieving the
banking objectives (Karagiorgos, et al,
2009).
Hevesi
(2008), control activities are the policies, procedures and mechanisms that
enforce management’s directives. Computerization refers to the identification,
capture and communication of pertinent information in as appropriate form and
time frame to accomplish financial reporting objectives. Effective communications
should occur in a broad sense with information flowing down, across and up the
organization. It is commonly acceptable that internal control system need to be
monitored in order to assess the quality of the system’s performance overtime
and by monitoring it is ensured that the findings of audits and other reviews
are promptly resolved.
Adeyemi
(2010) computerization in the banking industry are systems that operate
functions of data gathering, processing, categorizing and reporting financial events
with the aim of providing relevant information for the purpose of score
keeping, attention directing and decision-making.
In
the financial performance, Chenhall and Morris (1996) described accounting
information system to the perceived usefulness of scope, timeliness, level of
aggregation and integration. Scope refers to the measures being used and to the
extension of accounting information system in time and space.
Gardin
and Greve (2009) Accounting information system are considered as important organizational
mechanisms that are critical for effectiveness of decision management and
control in the banking organization. Performance management includes activities
that ensure that goals are consistently being met in an effective and efficient
manner.
2.2 Effects of internal control system in Access
Bank
Ochiagha
(2012), in the computerized environment, the computer system of internal
control is converted from a single manual control, manual and procedures for
joint control. As the computerized system of internal control has a combination
of manual control and process control features. Computerized system in many
applications include an internal control functions of these programs depending
on the internal control applications such as the proceeding is taking place
errors or does not work, because procedures for repetitive movements, making
control of the long term failure is not found, so that specific aspects of the
system errors or irregularities occurring more likely.
Murtala
(2010), unlike the manual accounting that economic operations are recorded on
paper, computerized system is a process whereby original paper-based accounting
data is recorded directly to disk or CD-Rom and can be easily removed or
tampered with since technically illegal changes of electronic data can be
achieved without leaving traces, which is difficult to business records. In
addition, the electromagnetic medium susceptible to damage, so accounting
information also exits the risk of lost or destroyed.
Bolaji
(2009), the introduction of computer technology in the banking industry added
to the industry a new accounting work and also a new control measures as well
as corresponding expansion of the system access control, change control of the
programme and security of accounting information within the disk protection,
computer operations management, system administrators and system maintenance
personnel.
Okorie
(2011), computerized accounting in the banking industry transactions are
authorized access to resources and records and should be limited to authorized
individuals and accountability for their custody and use should be assigned and
maintained by authorized staff. Periodic comparison of resources with the
recorded accountability should be made to help reduce the risk of errors,
fraud, misuse or unauthorized alteration.
Ogbu
(2011), internal control help in the appropriate documentation of transactions
and all transactions and other events need to be clearly done and the
documentation readily available for examination. The documentation should
appear in management directives, administrative policies, operating manuals or
electronic form.
Onah (2010), Computerized accounting system of internal control reflects
in the work in the process of system development and banking development.
Development controls includes the development of pre-feasibility studies,
capital budgeting, economic evaluation, development process of system analysis,
system design, system implementation as well as assessment of existing system,
system updating the feasibility study to update the program decision making.
Onuigbo (2009), internal control provides the following development
controls for efficient financial reporting, and banks achieving of her expected
benefits. They include,
1. Meet
the standard in norms: A computer accounting system and development of
projects, both on the banking development are necessary to follow the
departmental requirements.
2. Staff
training: Computer accounting system should be necessary during the
development phase of the system on the use of personal training, to improve
their staff awareness and understanding of the system in order to reduce the
system running the risk of error.
3. System
Conversion: Internal control help the management to put a new computer accounting
system into use, replace the existing manual accounting system, and do the
conversion process to respond to the banks specific use. Bank transformation in
the system should be done regularly for efficiency in the delivery of services.
4. Change
control procedures. Change in banking activities and environment may lead
to the use of the software to be modified. In order to actualize the objective,
internal control has a role of modifying
accounting software, modifying the process every step must be set to the
necessary control in order to meet up with the banking objectives.
Akabuogu (2008), internal control
help staff through computerized accounting system on accurate record of data
and as well financial upkeep of the banks. The information is timely filled and
a set up of complete file system and strengthen records management.
Obadan (2006), Internal control the staff to record the management data output
control to ensue that the data is
accurate, reliable and taken to the various control measures.
2.3 Challenges of Computerized Accounting System
Okonkwo
(2011), power failure has brought a lot of challenges to the computerization of
accounting system in the banking industry. It is a situation that defies the
internal control of any organization. To this end, the management should do
everything possible to avoid such enormous problems.
Zajac
and Pearce (2010) computer viruses and hackers are the inherent problems of
using computerized system. If virus occur, data saved may delete and if not
saved in a removable disk, information already saved would be found missing.
Ekechukwu
(2011), accounting system not properly set up to meet the requirement of the
business due to badly programmed or inappropriate software or hardware or
personnel problems can cause more havoc.
Ugbana
(2005) once data been input into the system automatically the output are
obtained hence the data being input needs to validated for accuracy and
completeness. This throws a lot of challenges in the accounting system.
Ige
(2006), danger of computer fraud if properly level of control and security are
not ensured contributes threat to the computerization in the accounting system.
This leads to the defrauding of the bank by a staff of the bank or fraudsters,
Peters (2012), Managerial inefficiency
constitutes a threat in a computerized accounting system. This is because most
top managers do not seek the advisers of their subordinates and this result to
inefficiency in administration. Equally, the subordinates will mishandle
his/her position.
Anoke (2011), Corruption at all levels brings problems in the
computerized accounting system in Access Bank.
Due to the corruption in the system, fraud, crime and operational
inefficiency controls the system and this leads to most bank failures.
2.4 Academic Review
Several
empirical literature on the analysis of internal control in a computerized
accounting system in the banking industry were reviewed. Siddiqui and Dodder
(2009) examine the effectiveness of financial audit of banking companies
operating within Bangladesh. The audited financial statements of 14 sample
banking companies have been analyzed. The study identifies seven sample
companies that have actually overstated their profits. Hence, the research explores
the level of independence, objectivity and competence of the auditors assigned
for auditing banking companies.
Douglas
et al (2005) examine the internal
audit function in the banks of Turkey. To achieve its purpose the following
methodology is used; 25 questionnaires were sent to internal auditors in the
banks of Turkey and 14 were answered representing 56% of the total
questionnaires distributed, while 90 different questionnaires were sent to
auditors and 50 were answered representing 56% of the total questionnaires
distributed. The analysis of the survey answers indicates that the importance
of internal audit in the banking sector is increased by the usage of computers
and the international extension of banks. Furthermore, the result show that the
number of internal auditors is related with the size of the bank. Regarding the
education of internal auditors, the result reveals that usually internal
auditors have graduated from universities and have studied accountancy. Finally
the research highlights the growing importance of internal auditing in banking
success.
Routoupis
and Tsamis (2008) reviewed three case study approaches in analyzing the
attitude of Greek banks with regard to the application of risk based approach.
The Greek law, the bank of Greece and international regulations impose internal
control in the Greek bank sector. However, the Greek banking credit
institutions ignored most regulations. The result of the research show that the
standards of internal auditing requires the adoption of risk based approach
from internal auditors. Unfortunately, this requirement is not being into
practice. Thus, the Greek banks adopts an intermediary approach of internal
auditing that takes into consideration the risks, without estimating and
managing them.
Khana
and Kaveri (2010) examined the implementation of risk based internal audit in
India banks. To accomplish the goals of the survey, a structured questionnaire
was mailed to 43 banks in India both “the public and private sectors”. A total
of 25 banks, all public sector banks and six private sector banks have
responded to the questionnaire mailed. The findings showed that the banks have
made sufficient progress in introducing risk based internal audit. This refers
to their understanding of methodology for the assessment of risks, audit
procedures and implementation of audit report.
Palfi
and Muresan (2009) examined the importance of a well organized system of
internal control in regard with the bank sector. The sample was based on 25
credit institutions of Romania. The analysis of the survey answers reveals that
the continuous collaboration based on periodical meetings between all
structures of bank, characterizes an effective internal audit department.
Abu-Musa
(2010) investigates the existence and adequacy of implemented security controls
of computerized accounting information system in the Saudi Banking sector. The
result of study reveals that the vast majority of Saudi banks have adequate
security controls in place. The results also enable managers and practitioners
to better secure their computerized accounting information systems and to
champion the security of information technology for the success of their banks.
Ademola
(2011) examined the existence and adequacy of implemented security controls in
the Egyptian banking sector. The results of the survey pointed out that the
vast majority of Egyptian banks have adequate security control in place. The
result also revealed that the computer departments paid relatively more
attention to technical system controls while internal audit departments
emphasized more of the behavioral and organizational security controls.
Finally, the study provides valuable empirical results regarding inadequacies
of implemented CAIS security controls and introduced some suggestions to
strengthen and improve the security controls in the Egyptian banking system.
Bongele
(2012) investigates the appropriate review between designing of accounting
information system and performance of commercial banks units by analyzing
strategies. The findings using the United Bank of Africa reviews that high
performance of commercial units depends on wide range of accounting information
system. Other finding reviewed that banks systematically vary their accounting
information system to support their chosen strategy recognizing that accounting
information system have the potential to facilitate strategy management and
enhance organizational performance.
2.5 Gap in Literature
In
the course of synthesis of the literature reviewed, efforts were made to look
at the concept of internal control in the computerized accounting system in Access
Bank. We also brought into focus the vital and related issues of internal
control and general improvement in the computerized accounting system in Access
Bank.
However, the existing literature offers
scant evidence of the relationship between accounting information system and
financial performance of Access Bank which have to do with a positive
association between accounting information system design and banking strategy
and performance.
Furthermore, the existing literature
offers scant evidence of the relationship between the accounting information
system and management performance. Accounting information system are considered
as organizational mechanisms that are critical for effectiveness of decision
makers and control in organization.
Finally, the
study have failed to assess the effectiveness of internal control in the
computerized accounting system of Access Bank, Abakaliki branch.
2.6
Theoretical Framework.
To further
enhance the effectiveness and general understanding of the subject matter, a
background of systematically organized knowledge of varying levels generalized
needs to be analyzed. This is aimed at providing meaning and relevance from the
development of such knowledge and concerts whose application provides
specifications and relationship based on empirical tests and validations.
A theory
provides us with the tools with which we try to analyze issues and causations
in order to determine what is real and what is not. It is important to provide
an analytical basis of explanations which would enhance better appreciation and
understanding of internal control and computerized accounting system in Access
Bank.
There are several existing theories in
the management sciences which would suit our purpose in this work. For a better
analysis, we shall employ the contingency theory of accounting information.
2.6.1
The Contingency
theory of accounting information.
The contingency
theory founded by Smith (1907) describes a new theory of information system,
which embraces both macro organizational concept, technology and human
information processing system. The
theory and the possible relationship of internal control, computerized
accounting system in the banking industry fix in management decision (Gerdin
and Greve, 2004, Widener 2006, Waterhouse and Tiessen 1978),
For
such theory to be performed, the conceptual model are the financial
information, managerial information and auditing information reporting and the
interaction among them.
Deriving
from above, it would be precise to assert that the effectiveness and efficiency
of the banking industry can be determined by the co-existence of internal
control through computerized accounting system to yield efficient managerial
decision making and control.
Thus, this has been considered to be true and functional because since
the practice of computer in our financial institutional, the work-load has been
reduced and accounting balances has been accurate.
However, criticism by some scholars such
as Ebenezer (2005), stated that the use of computer accounting system has led
to fraud, inefficiency and collapse of many banks in the country.
CHAPTER
THREE
METHODOLOGY
3.1 Research Design
The
descriptive method of research based on sample survey design was adopted in
this study. Descriptive analysis involves systematic collection and
presentation of data to give a clear picture of a particular situation.
3.2 Area of Study
This
work is carried out in Access Bank Plc. It is further narrowed down to Access
Bank, branch Abakaliki. This is to help the researcher gather adequate
information for the analysis.
3.3 Population of Study
The
population of Access Bank plc, Abakaliki as at time of this study is 230 (Two
hundred and thirty) staff.
3.4 Sampling Technique and Determination
Simple
random sampling was used in the distribution of questionnaire. This is to
ensure that every respondent has a chance of getting a questionnaire in the
study. The questionnaire is close ended type which is divided into two parts.
Bio-data as part one and the main questions as the second part.
3.4.1 Determination of sample size
Taro Yamain was used to determine
the sample size of the population the formular for the Taro Yamain is given
below.
N = __N__
1+N(e)2
Where
n = desired sample
N = Total population (230)
I = constant
e = Acceptable error margin (0.05)
Thus: n = ___230______
1+230x0.0025
=
N__
1.575 = 146.
Therefore, the sample size is 146 staff.
3.5 Sources of Data Collection
The
source of data collection is primary. That is the responses collected from the
structured questionnaires that were administered to the responses. The
questions were on the five point likert type questions with choice of strongly
agree (SA), agree (A), undecided (UN), disagree (D) and strongly disagree (SD).
Further, the questionnaire consisted of two sections. The first section focused
on demographics of the target audience. The second section covers the main
questions.
3.6 Validity and reliability of instruments
The
questionnaire was submitted to experts in the field of study and through the
technique of face and content analysis, it was validated. Some impact factors omitted were added and some irrelevant factors
included removed.
Reliability
test was carried out by test-retest method, in which case, the questionnaire
were distributed and re-distributed after two weeks interval, and the results
correlated to ensure consistency. No significant variation was observed
in-between the re-administration interval.
3.7 Method of Data Analysis
The
research paradigms used by this study were the qualitative and quantitative
approaches. In the presentation of our data for the study, the qualitative and
quantitative data complemented each other. The presence of these two approaches
ensured validity and reliability of the study. in other words, the information
gathered from literature reviewed assisted to authenticate the data from the
questionnaire and interview.
Data
presentation consists of simple table showing statistical records in row and
column formation and Chi-square (X)2 technique used to test the hypotheses for
the difference between a set of observed frequencies and a corresponding
expected frequency.
The formula is stated below of
significance.
X2 = (oi – ei)2
ei
where x2
= chi-square
oi = observed
frequency
ei = expected frequency
CHAPTER
FOUR
PRESENTATION
AND ANALYSIS
4.1 Presentation of Data
The
previous section described the design used in this study, the procedure,
population size and sample, sources of data and rate at which questionnaires
were returned. This chapter focused on collected data, analysis of the data,
presentation and validation of hypotheses stated in chapter one for the purpose
of this study, we uses strongly agree, agree, undecided, disagree and strongly
disagree to answer questions.
Table
4.1: Sex of Respondents
|
|
Frequency
|
Percent
|
Valid
percent
|
Cumulative
percent
|
|
Male
|
86
|
58.90
|
60.04
|
60.04
|
|
Female
|
56
|
38.36
|
39.96
|
100.00
|
|
Total
|
146
|
100
|
100
|
|
Source: Kama’s field survey, 2013
The table 1 shows that 86 respondents
representing 60.04% are male while 56 respondents representing 39.96% are
female.
Table
4.2: Age Respondents
|
|
Frequency
|
Percent
|
Valid
percent
|
Cumulative
percent
|
|
20-30yrs
|
56
|
38.36
|
39.36
|
39.36
|
|
31-40 yrs
|
44
|
30.14
|
31.14
|
70.50
|
|
41-above
|
40
|
21.40
|
29.50
|
100.00
|
|
Total
|
146
|
100
|
100
|
|
Source:
Kama’s field survey, 2013
The
table 2 above shows that 56 respondents representing 39.36% of the total
respondents are within the age bracket of 20-30 years, 44 respondents presenting
31.14% of the respondents fall between the ages of 31-40 years while 40
respondents representing 29.50% are between the 41 and above years of age
bracket. Therefore, most members of the workforce are within the productive
age. This encourages effective performance.
Table
4.3: Marital status
|
|
Frequency
|
Percent
|
Valid
percent
|
Cumulative
percent
|
|
Single
|
80
|
54.79
|
54.79
|
54.79
|
|
Married
|
40
|
27.40
|
28.40
|
83.19
|
|
Divorced
|
26
|
7.81
|
27.81
|
100.00
|
|
Total
|
146
|
100
|
100
|
|
Source:
Kama’s field survey, 2013
The table above shows that 80
respondents with 54.79% are single staff, 40 respondents representing 28.40%
are married whereas 26 respondents representing 27.81% are divorced.
Table
4.4: Educational Qualification
|
|
Frequency
|
Percent
|
Valid
percent
|
Cumulative
percent
|
|
University graduates
|
80
|
54.79
|
55.79
|
55.79
|
|
College of Education and polytechnics
|
47
|
32.19
|
33.9
|
88.98
|
|
Secondary schools
|
19
|
100.00
|
|
100.00
|
|
Total
|
146
|
100
|
|
|
Source:
Kama’s field survey, 2013
The
result from table 4 above indicates that respondents representing 55.79% are
university graduates, 47 respondents with 33.19% are college of Education and
polytechnics graduates while 19 respondents with 10.02% are secondary school
certificate holders.
Section
B
Question 1
Does the
management of internal control provide adequate internal framework of checks
and balances that ensure operational efficiency and effectiveness?
1. How
Internal control improved the Access Bank management through computer
accounting operation?
Table4.
5: Internal Control Improved Access Bank Operation.
|
|
Frequency
|
Percent
|
Valid
percent
|
Cumulative
percent
|
|
Strongly agree
|
60
|
41.09
|
41.10
|
41.10
|
|
Agree
|
30
|
20.54
|
21.00
|
62.10
|
|
Undecided
|
8
|
5.48
|
6.48
|
68.58
|
|
Disagree
|
30
|
20.54
|
21.00
|
89.58
|
|
Strongly disagree
|
18
|
12.32
|
10.42
|
100
|
|
Total
|
146
|
100
|
100
|
|
Source:
Kama’s field survey, 2013
The
table above shows that 60 respondents representing 41.10% strongly agree that
internal control improved the banking operations of Access Bank through computer accounting operation. 30 respondents
with 21.00% agree, 8 respondents with 6.48% undecided, 30 respondents
representing 21.00% disagree white 18 respondents with 10.40% strongly
disagree.
2.
Has
computerized accounting system provides adequate internal framework that ensure
operational efficiency and effectiveness in Access Bank.
Table 4.6 computerized accounting system
provides adequate internal framework that ensure operational efficiency and
effectiveness.
|
|
Frequency
|
Percent
|
Valid
percent
|
Cumulative
percent
|
|
Strongly agree
|
50
|
34.24
|
35.24
|
35.44
|
|
Agree
|
45
|
30.82
|
31.02
|
66.26
|
|
Undecided
|
6
|
4.10
|
4.11
|
80.37
|
|
Disagree
|
26
|
17.80
|
17.81
|
98.18
|
|
Strongly disagree
|
20
|
13.69
|
13.70
|
100.00
|
|
Total
|
146
|
100
|
100
|
|
Source:
Kama’s field survey, 2013
The table above shows that 50
respondents representing 35.24% strongly agree, 45 respondents representing
31.02% agree, 6 respondents unleaded, 26 respondents representing 17.81%
disagree and 20 respondents representing 13.70% strongly disagree.
3. Has innovation of computer technology into
the banking industry brought new development to the Access Bank?
Table 4.7: Innovation
of computer technology into the banking industry has brought development into
the Access Bank.
|
|
Frequency
|
Percent
|
Valid
percent
|
Cumulative
percent
|
|
Strongly agree
|
48
|
32.87
|
33.88
|
33.8
|
|
Agree
|
56
|
39.36
|
39.36
|
73.24
|
|
Undecided
|
11
|
7.54
|
7.54
|
80.78
|
|
Disagree
|
12
|
8.21
|
9.21
|
98.99
|
|
Strongly disagree
|
19
|
13.03
|
10.01
|
100.00
|
|
Total
|
146
|
100.00
|
100.00
|
|
Source:
Kama’s field survey, 2013
The table above
shows that 48 respondents representing 33.88% strongly agree, that innovation
of computer technology into the banking industry has brought development
into the Access Bank; 56 respondents
representing 39.36% agree, 11 respondents unleaded, 12 respondents 9.21% agree
and 19 respondents representing 10.01% strongly disagree.
4. Has
computer accounting provides internal framework of checks and balances into the
Access Bank?
Table 4.8. Computer accounting provides
internal framework of checks and balance in the Access Bank.
|
|
Frequency
|
Percent
|
Valid
percent
|
Cumulative
percent
|
|
Strongly agree
|
70
|
48.94
|
48.45
|
48.45
|
|
Agree
|
40
|
28.39
|
28.38
|
76.83
|
|
Undecided
|
3
|
2.05
|
2.05
|
78.88
|
|
Disagree
|
19
|
12.03
|
13.01
|
91.89
|
|
Strongly disagree
|
14
|
9.61
|
8.21
|
100.00
|
|
Total
|
146
|
100.00
|
100.00
|
|
Source:
Kama’s field survey, 2013
The table above
shows that 70 respondents representing 48.45% strongly agree, that computer
accounting provides internal framework of checks and balance in the banking
industry, 40 respondents representing 28.38% agree, 3 respondents with 2.05%
unleaded 19 respondents representing 13.01% disagree, 14 respondents
representing 8.21% strongly disagree.
5. Has
internal control through computer accounting provides adequate documentation
and updates of data of Access Bank?
Table 4.9: Internal control through
computer accounting provides adequate documentation and updates of data of Access
Bank.
|
|
Frequency
|
Percent
|
Valid
percent
|
Cumulative
percent
|
|
Strongly agree
|
45
|
30.82
|
31.64
|
31.64
|
|
Agree
|
63
|
43.15
|
44.15
|
75.79
|
|
Undecided
|
5
|
3.42
|
3.40
|
79.19
|
|
Disagree
|
16
|
10.95
|
10.96
|
90.15
|
|
Strongly disagree
|
17
|
11.64
|
9.85
|
100.00
|
|
Total
|
146
|
100.00
|
100.00
|
|
Source:
Kama’s field survey, 2013
The table above shows that 45
respondents representing 31.64% strongly Agree that internal control provides adequate documentation and updates
of data, 63 respondents with 44.15% Agree, 5 respondents with 3.40% undecided,
16 respondents with 10.96% disagree while 17 respondents with 9.85% strongly
disagree.
Research Question 2: Does Human
resources effect on the computerization of the accounting system in the Access
Bank leads to accounting scandals?
1.
Human
resource control has restored the imbalance caused by
computer virus
in the internal control system of the Access Bank.
Table 4.10: Human resource has restored
imbalances in power failures
|
|
Frequency
|
Percent
|
Valid
percent
|
Cumulative
percent
|
|
Strongly agree
|
58
|
39.72
|
40.72
|
40.72
|
|
Agree
|
32
|
21.91
|
22.21
|
62.93
|
|
Undecided
|
2
|
1.36
|
1.38
|
64.31
|
|
Disagree
|
30.4
|
20.54
|
20.54
|
84.85
|
|
Strongly disagree
|
20
|
16.43
|
15.15
|
100.00
|
|
Total
|
146
|
100
|
100
|
|
Source:
Kama’s field survey, 2013
The table above
shows that 58 respondents representing 40.72% strongly Agree that human
resource has restored the imbalances in Access Bank even as power fails, 32
respondents with 22.21% Agree, and respondents with 1.38% undecided, 30
respondents with 20.54% disagree while 24 respondents representing 15.15%
strongly disagree.
2. Has
Human resource control improved customer satisfaction during computer power
failures in Access Bank?
Table 4.11: Human resource control was
improved customer satisfaction during computer power failure
|
|
Frequency
|
Percent
|
Valid
percent
|
Cumulative
percent
|
|
Strongly agree
|
45
|
30.82
|
31.28
|
31.28
|
|
Agree
|
50
|
34.24
|
34.25
|
65.53
|
|
Undecided
|
4
|
2.73
|
2.74
|
68.27
|
|
Disagree
|
22
|
15.00
|
15.06
|
83.33
|
|
Strongly disagree
|
26
|
17.21
|
16.67
|
100.00
|
|
Total
|
146
|
100
|
100
|
|
Source:
Kama’s field survey, 2013
The table above
shows that 45 respondents with 31.28% strongly agree that human resource has
improved customer satisfaction during power failure, 50 respondents with 34.25%
agree, 4 respondents with 2.74% undecided, 22 respondents 15.06% disagree while
26 respondents with 16.67% strongly disagree.
3. Has
Human resource control help in keeping the updates of computer operating system
in the Access Bank?
Table 4.12: Human resource keeps the Access
Bank updates through computer operating system.
|
|
Frequency
|
Percent
|
Valid
percent
|
Cumulative
percent
|
|
Strongly agree
|
47
|
32.19
|
32.29
|
32.29
|
|
Agree
|
48
|
32.87
|
32.01
|
65.30
|
|
Undecided
|
3
|
2.05
|
2.05
|
67.35
|
|
Disagree
|
23
|
15.75
|
15.78
|
83.13
|
|
Strongly disagree
|
25
|
17.14
|
16.87
|
100.00
|
|
Total
|
146
|
100
|
100
|
|
Source:
Kama’s field survey, 2013
The result in table 12 shows that 47
respondents with 32.29% strongly Agree that human resource keeps the Access
Bank updates through computer operating system, 48 respondents representing
33.01% agree, 3 respondents representing 2.05% undecided, 23 respondents,
representing 15.78% disagreed while 25 respondents representing 16.87% strongly
disagrees.
4. Has
computerization of accounting system restored administrative efficiency in the Access
Bank?
Table 4.13: Computerization of
accounting system has restored the administrative efficiency in the Access Bank.
|
|
Frequency
|
Percent
|
Valid
percent
|
Cumulative
percent
|
|
Strongly agree
|
43
|
29.45
|
30.21
|
30.21
|
|
Agree
|
47
|
31.19
|
32.19
|
62.40
|
|
Undecided
|
2
|
1.06
|
1.36
|
63.76
|
|
Disagree
|
36
|
24.66
|
24.67
|
88.43
|
|
Strongly disagree
|
18
|
13.64
|
11.57
|
100.00
|
|
Total
|
146
|
100.00
|
100
|
|
Source: Kama’s field survey, 2013
The result from
the table above shows that 43 respondents representing 30.21% strongly agree
that computerization of accounting system has restored the administrative efficiency
in the Access Bank, 47 respondents representing 32.19% Agree, 2 respondents
representing 1.36% untended, 36 respondents representing 24.67% disagree while
18 respondents representing 11.57% strongly disagree.
Research question 3:
Does the infrastructural effect on the
computerization of the accounting system occur as a result of administrative
inefficiency?
1. Has
Poor infrastructural development affects the internal control of accounting
system in the Access Bank?
Table 4.14: Poor infrastructural
development affects the internal control of computerized accounting system.
|
|
Frequency
|
Percent
|
Valid
percent
|
Cumulative
percent
|
|
Strongly agree
|
47
|
32.19
|
32.29
|
32.29
|
|
Agree
|
48
|
32.87
|
33.01
|
65.30
|
|
Undecided
|
3
|
2.05
|
2.05
|
6735
|
|
Disagree
|
25
|
17.14
|
16.87
|
84.22
|
|
Strongly disagree
|
23
|
15.74
|
15.76
|
100.00
|
|
Total
|
146
|
100
|
100
|
|
Source:
Kama’s field survey, 2013
The table above shows that 47
respondents with 32.29% strongly agree that poor infrastructural development
affects the internal control of computerized accounting system; 48 respondents
with 33.01% agree, 3 respondents with 2.05% undecided, 25 respondents with
16.87% disagree while 23 respondents with 15.76% strongly disagree.
2. Has quality infrastructural development
help in keeping the update of computer accounting system in Access Bank?
Table 4.15: Quality Infrastructural
development help in keeping the updates of Access Bank.
|
|
Frequency
|
Percent
|
Valid
percent
|
Cumulative
percent
|
|
Strongly agree
|
56
|
38.36
|
39.36
|
39.36
|
|
Agree
|
48
|
32.87
|
33.88
|
73.24
|
|
Undecided
|
11
|
7.53
|
7.54
|
80.78
|
|
Disagree
|
19
|
13.03
|
10.01
|
90.79
|
|
Strongly disagree
|
12
|
8.21
|
9.21
|
100.00
|
|
Total
|
146
|
100
|
100
|
|
Source:
Kama’s field survey, 2013
The table above shows that 56
respondents with 39.36% strongly Agree that quality infrastructural development
help in keeping the update of computer accounting system of Access Bank, 48
respondents with 33.88% Agree, 11 respondents with 7.54% undecided. 19
respondents with 10.01% disagree while 12 respondents with 9.21% strongly disagree.
3. Has infrastructional development
attracts customers attention to Access?
Table 4.16: Infrastructural development
attracts customers attention to the bank.
|
|
Frequency
|
Percent
|
Valid
percent
|
Cumulative
frequency
|
|
Strongly agree
|
47
|
31.19
|
32.19
|
32.19
|
|
Ag ree
|
43
|
29.45
|
30.21
|
62.40
|
|
Undecided
|
2
|
7.06
|
1.36
|
63.76
|
|
Disagree
|
18
|
13.64
|
11.57
|
88.43
|
|
Strongly disagree
|
36
|
24.66
|
24.67
|
100
|
|
Total
|
146
|
100
|
100
|
|
Source:
Kama’s field survey, 2013
The table above shows that 47
respondents with 32.19% strongly agree infrastructural development attracts
customers attention to the bank, 43 respondents with 30.21% agree, 2
respondents with 1.36% undecided, 18 respondents with 11.57% disagree whereas
36 respondents with 24.67% strongly disagree.
4. Has
quality infrastructure provides adequate internal framework
of checks and
balances in the Access Bank?
Table 4.17
Infrastructural quality showing adequate internal framework of checks and
balances in Access Bank.
|
|
Frequency
|
Percent
|
Valid
percent
|
Cumulative
percent
|
|
Strongly agree
|
40
|
27.39
|
28.38
|
28.38
|
|
Agree
|
70
|
47.94
|
48.45
|
76.83
|
|
Undecided
|
3
|
2.05
|
2.05
|
78.88
|
|
Disagree
|
14
|
9.61
|
8.21
|
31.89
|
|
Strongly disagree
|
19
|
13.03
|
13.01
|
100.00
|
|
Total
|
146
|
100.00
|
|
|
Source: Kama’s field survey, 2013
The table above
shows that 40 respondents with 28.38% strongly agree,70 respondents with 48.45%
agree, 3 respondents with 2.05% undecided, 14 respondents with 8.21% disagree
while 19 respondents with 13.01% strongly disagree.
4.2 Data Analysis
Having
presented the data, they were analyzed in relation to the presentation. They
were then used in testing the entire hypotheses. Chi-square(X2) was
used to test the hypotheses listed in chapter one. The research tested the null
hypothesis at 0.05 level of significance.
From
the table, the chi-square (X2) method is applied with the formula.
X
= 
=
Hypothesis one:
Ho represents the null hypothesis
Ha represents the alternative hypothesis
Ho: Internal control does not provide
adequate internal framework of checks and balances that ensure operational
efficiency and effectiveness in Access Bank.
Ha: internal control provides adequate
internal framework of checks and balances that ensures operational efficiency
and effectiveness in Access Bank.
From the data presentation, the tables
below, were used to provide the answer; which was answered on tables 5 and 6 of
the questionnaire.
Table
4.18: Internal Control Effect on Access Bank
|
|
Frequency
|
Percent
|
Valid
percent
|
Cumulative
frequency
|
|
Strongly agree
|
60
|
41.09
|
41.10
|
41.10
|
|
Agree
|
30
|
20.54
|
21.00
|
62.10
|
|
Undecided
|
8
|
5.48
|
6.48
|
68.58
|
|
Disagree
|
30
|
20.54
|
21.00
|
89.58
|
|
Strongly disagree
|
18
|
12.32
|
10.42
|
100.00
|
|
Total
|
146
|
100.00
|
100
|
|
Source: Kama’s field survey, 2013
Table 4.19: Computer Accounting System
and Operational Efficiency and Effectiveness in Access Bank
|
|
Frequency
|
Percent
|
Valid
percent
|
Cumulative
frequency
|
|
Strongly agree
|
50
|
34.24
|
35.24
|
35.24
|
|
Agree
|
45
|
39.82
|
31.02
|
66.26
|
|
Undecided
|
6
|
4.10
|
4.11
|
80.37
|
|
Disagree
|
26
|
17.80
|
17.81
|
98.18
|
|
Strongly disagree
|
20
|
13.69
|
13.70
|
100
|
|
Total
|
146
|
100.00
|
100
|
|
Source: Kama’s field survey, 2013
Table 4.20 contingency table for the
relationship between internal control and provision of internal framework of
checks and balances by management.
|
OPTIONS
|
A
|
B
|
|
Strongly agree
|
60(41.10)
|
50(35.24)
|
|
Agree
|
30(21.00)
|
45(31.02)
|
|
Undecided
|
8(6.48)
|
6(4.11)
|
|
Disagree
|
30(21.00)
|
26.(17.81)
|
|
Strongly disagree
|
18(10.42)
|
20(13.70)
|
|
Total
|
146
|
146
|
Source: Kama’s field survey, 2013
From the table, the chi-square method is
applied with the formula
X =
=
(60-41.1)2 + (30 – 21)2
+(8-6.48)2 + (30-21)2
+ (18-10.42)2 + (50 – 35.24)2
+ (45-31.02)2 +(6-4.11)2
+ (26-17.81)2 +
(20-3.7)2
==> 1067.14
Degree of freedom (DF)
Df = (R-1) (c-1)
Where R = row
C = column
Df = (5-1) (2-1) = 4
The tabulated chi-square at degree of
freedom (4) and level of significance 0.05; X2(4) = 9.48773.
Decision rule: If the chi-square calculated is less than
chi-square tabulated, we accept H0, otherwise, we reject.
Since
the calculated chi-square (1067.14) is greater than the tabulated chi-square
(9.48773) under 4 degree of freedom and 0.05 level of significance, we reject Ho
and accept Ha and conclude that internal control provides adequate internal
framework of checks and balances that ensures operational efficiency ad
effectiveness in Access Bank.
Hypothesis
Two:
Ho: There
is no significant impact of human resource control on the computerization of
the accounting system as regards virus and power failures in Access Bank
Ha:
There is significant impact of human resource control on the computerization of the
accounting system as regards virus and power failures in the Access Bank.
From
the data presentation, the tables below will be used to analyses the
hypothesis.
Table
4.21: Human resource and imbalance
caused by computer
virus
|
|
Frequency
|
Percent
|
Valid
percent
|
Cumulative
frequency
|
|
Strongly agree
|
58
|
39.72
|
40.72
|
40.72
|
|
Agree
|
32
|
21.91
|
22.21
|
62.93
|
|
Undecided
|
2
|
1.36
|
1.38
|
64.31
|
|
Disagree
|
30
|
20.54
|
20.54
|
84.85
|
|
Strongly disagree
|
24
|
16.43
|
15.15
|
100
|
|
Total
|
146
|
100.00
|
100
|
|
Source: Kama’s field survey, 2013
Table 4.22: Human resource help in
keeping the update of computer accounting system.
|
|
Frequency
|
Percent
|
Valid
percent
|
Cumulative
frequency
|
|
Strongly agree
|
47
|
32.19
|
32.29
|
32.29
|
|
Agree
|
48
|
32.87
|
33.01
|
65.30
|
|
Undecided
|
3
|
2.05
|
2.05
|
67.35
|
|
Disagree
|
23
|
15.75
|
15.78
|
83.13
|
|
Strongly disagree
|
25
|
17.14
|
16.87
|
100
|
|
Total
|
146
|
100.00
|
100
|
|
Source: Kama’s field survey, 2013
Table 4.23: contingency table for Human
resource control and effect of virus and power failures in the computerized accounting
system.
|
OPTIONS
|
A
|
B
|
|
Strongly agree
|
58(40.72)
|
47(32.29)
|
|
Agree
|
32(22.21)
|
48(33.01)
|
|
Undecided
|
2(1.38)
|
3(2.05)
|
|
Disagree
|
30(20.54)
|
23(15.78)
|
|
Strongly disagree
|
24(15.15)
|
25(16.87)
|
|
Total
|
146
|
146
|
Source: Kama’s field survey, 2013
From the table, the chi-square method is
applied with the formula
X =
=
(58-40.72)2 + (32-22.21)2 + 2-1.38)2 + (30-20.54)2
+ (24-15.15)2 + (47-32.29)2 +
(48-33.01)2 + (3-2.05)2 + (23-15.78)2 +
(25-16.87)2
= 1122.85
degree of freedom (DF)
Df = (R-1) (C-1)
Where R = row
C = column
Df = (5-1)(2-1) = 4
The tabulated chi-square at degree of
freedom (4) and 0.05% level of significance is 9.48773.
Decision
Rule:
If the chi-square calculated is less
than chi-square tabulated, we accept Ho, otherwise, we reject.
Since
the calculated chi-square (1122.85) is greater than the tabulated chi-square
(9.48775) under 4 degree of freedom and 0.05% level of significance, we reject
Ho and accept Ha and conclude that there is a significant impact of human
control on the computerization of the accounting system as regards virus and
power failures in Access Bank
Hypothesis
Three
Ho:
There is no significant impact of infrastructure in the computerization
of the accounting system as a result of administrative efficiency in Access
Bank
Ha: There
is a significant impact of infrastructure in the computerization of the
accounting system as a result of administrative efficiency Access Bank
From
the data presentation, the tables below will be used to analyze the hypothesis.
Table 4.24: Poor infrastructural development affects the
internal
control of
computer accounting system in the banking industry.
|
|
Frequency
|
Percent
|
Valid
percent
|
Cumulative
percent
|
|
Strongly agree
|
47
|
32.19
|
32.29
|
32.29
|
|
Agree
|
48
|
32.87
|
33.01
|
65.30
|
|
Undecided
|
3
|
2.05
|
2.05
|
67.35
|
|
Disagree
|
23
|
15.75
|
16.87
|
84.23
|
|
Strongly disagree
|
25
|
17.14
|
15.76
|
100
|
|
Total
|
146
|
100.00
|
100
|
|
Source: Kama’s field survey, 2013
Table 4.25: Infrastructural development
attracts customers attention to the bank.
|
|
Frequency
|
Percent
|
Valid
percent
|
Cumulative
percent
|
|
Strongly agree
|
47
|
31.19
|
32.19
|
32.19
|
|
Agree
|
43
|
29.45
|
30.21
|
62.40
|
|
Undecided
|
2
|
1.06
|
1.36
|
63.76
|
|
Disagree
|
18
|
13.64
|
11.57
|
88.43
|
|
Strongly disagree
|
36
|
24.66
|
24.67
|
100
|
|
Total
|
146
|
100.00
|
100
|
|
Source: Kama’s field survey, 2013
Table 4.26: Contingency table for the relationship between infrastructural
development and customers satisfactory through computer accounting system.
|
OPTIONS
|
A
|
B
|
|
Strongly agree
|
47(32.19)
|
47(32.19)
|
|
Agree
|
48(33.01)
|
43(30.21)
|
|
Undecided
|
3(2.05)
|
2(1.36)
|
|
Disagree
|
25(16.87)
|
18(13.64)
|
|
Strongly disagree
|
23(15.76)
|
36(24.67)
|
|
Total
|
146
|
146
|
Source: Kama’s field survey, 2013
From the table, the chi-square method is
applied with the formula
X =
=
(47-32.19)2+(48-33.01)2
+ (3-2.05)2 + (25-16.87)2 + (23-15.76)2 +
(47-32.19)2 + (43 -30.21)2 +(2-1.36)2 +
(18-13.64)2 + (36-24.67)2 =>1097.14.
degree of freedom (Df)
Df = (R-1) (c-1)
Where R = row
C = column
Df = (5-1) (2-1) = 4
The tabulated chi-square at degree
freedom (4) and 0.05% level of significance is 9.48773.
Decision
rule
If the calculated chi-square is less than the
tabulated chi-square, we accept Ho, otherwise, we reject.
Since
the calculated chi-square 91097.14) is greater than the tabulated chi-square
(9.48773) under 4 degree of freedom and 0.05% level of significance, we reject
the ho and accept the ha and conclude that there is a significant impact of
infrastructure in the computerization of the accounting system as a result of
administrative efficiency in Access Bank
CHAPTER
FIVE
DISCUSSION
AND SUMMARY OF FINDINGS
5.1 Discussion
5.1
Discussion
In accordance
with the raised hypotheses and in effort to evaluate the hypotheses, some
statistical analyses were employed. Such statistical methods as simple tables
that consist of list of objects containing statistical records in row and
column formation and , as well, chi-square (X2) technique was used
to test the hypotheses for the difference between a set of observed frequencies
and a corresponding expected frequency. Some specific questions were
administered in the interview guide which were used to complement and confirm
the result of the qualitative analysis.
5.2.1 Hypothesis 1:
Internal control does not provide
adequate internal framework of checks and balances that ensure operational
efficiency and effectiveness in Access Bank.
This
hypothesis was subjected to the test of the significance of the chi-square(X2)
methods between the management control and the checks and balances in records
keeping. Form the result, operation is as a result of internal control by the
management of Access Bank.
Besides,
an item by item analysis between the variables revealed that internal control
provides adequate internal framework for operational efficiency. These
contingencies for positive options are 41.1, 21.0, 6.48, 21.0. 10.42 and 35.24,
31.02, 4.11, 17.81, 13.7 shows that there is a strong impact between the two
variables. Equally, the findings in answer to research question one of this
study agree with the above result.
5.2.2 Hypothesis 2:
There
is no significant impact of human resource control on the computerization of
accounting system as regards virus and power failures in the banking industry.
The
result of the test of significance of the chi-square(X2) test between the positive impact of human resource
control and effects of virus and power failures in Access Bank shows that human
resource play a major role in controlling virus and power failure in the bank.
An
items by item analysis o the contents shows that there is a positive impact.
The contingency for positive options are 40.77, 22.1.38, 20.54, 15.15 and
32.29, 33.01, 2.05, 15.78, 16.87 this means there is a positive impact from
human resource I the computerized control question 3 of this study agree with
the result.
5.2.3 Hypothesis 3
There
is no significant impact of infrastructure in the computerization of the
accounting system as a result of administrative efficiency in Access Bank.
This
hypothesis was subjected to the test of significance of the chi-square (X2)
method between Access Bank
infrastructure and its effect in computerized accounting system. From the
result of the test, it was shown that infrastructural development brings a lot
of favours to Access Bank as it helps in safeguarding the banking documents and updates.
Besides,
an item by item analysis indicates that good administrative efficiency
contributes to these success in the bank. The contingency for positive options
are 32,19, 33.01, 2.05, 16.87, 15.76 and 32.19, 30.21, 1.36, 13.64, 24.67.
finally, the findings in answer to research question four agree with the above
result that there is significant impact of infrastructure in the
computerization of the accounting system as a result to computerization of the
accounting system as a result of administrative efficiency.
5.2
Summary of Findings
This
findings shows the results of the three hypotheses using chi-square (x2)
statistical technique. The interpretation of the corresponding results of the
test constitutes our findings in these hypotheses.
5.1.1
HYPOTHESIS 1:
Internal
control does not provide adequate internal framework of check and balances that
ensure operational efficiency and effectiveness in Access Bank.
The
result shows that the chi-square (x2) method for the testing of the
relationship between Internal control and provision of internal framework of
check and balances in Access Bank is (1067.14). This value has been interpreted
to mean a positive relationship between the two variables. This means that
internal control in Access Bank has contributed in enhancing checks and
balances in the bank. This relationship is significant as shown by the 0.05%
level of significance at the 4 degree of freedom. This implies that at the 4
degree of freedom, the tabulated score of 9.48773 is less than the calculated
score of (1067.14) and hence, the null hypothesis is rejected. In other words,
the provision of adequate internal frame work of checks, and balances in Access
Bank is dependent on the management of internal control.
5.1.2
HYPETHESIS 2:
There is no significant impact of human
resource control on the computerization of the accounting system as regards
virus and power failures in the Access Bank.
From
the result of the hypothesis testing using chi-square (x2) method
between Human resource control and control of virus and power failures in Access
Bank shows (1122.85). Equally, this value has been interpreted to mean positive
relationship between human resource control of the computerized accounting
system and the control of virus and power failures in Access Bank. This
relationship is significant as shown by the degree of freedom (Df = 4) which is
less than 0.05% level of significance. This implies that the corresponding null
hypothesis is rejected as a result of the tabulated score of 9.48773. Indeed,
there is significant impact of human resource control on the computerization of
the accounting system as regards virus and power features in Access Bank.
5.1.3
HYPOTHESIS 3:
There
is no significant impact of infrastructure in the computerization of the
accounting system as a result of administrative efficiency in Access Bank.
The
result of hypothesis 3 shows that chi-square method for the testing of the
significant impact infrastructure in computer accounting is (1097.14). This value
has been interpreted to mean positive relationship between the two variables.
This seems to mean that poor infrastructural development are traits to the
storing of the computer system. This result is significant as shown by the
0.05% level of significance at the tabulated score of 9.48773. In other words,
the corresponding null hypothesis is rejected.
CHAPTER
SIX
SUMMARY,
RECOMMEDATIONS AND CONCLUSION
6.1 SUMMARY
The study adopts
an in-depth study approach to address the issue of internal control in a
computerized accounting system – A study of Access Bank, Abakaliki branch. It
is motivated by the concern that the results from the study will be useful to
banking industry in the management of their affairs against fraud.
The proportional
stratified sampling technique was used to select the respondents. Chi-square (x2)
was used to test the hypotheses for the difference between a set of observed
frequencies and a corresponding expected frequency.
Results of the
study showed that internal control provides adequate framework of checks and
balances that ensures operational efficiency and effectiveness. This was
subjected to the test of significance of chi-square (x2) between
internal control of Access Bank and results after checks and balances of the
banks transactions. The result of the second hypothesis tested using chi-square
(x2) technique at 0.05% level of significance shows that human
resource control on the computerization of the accounting system in Access Bank
concerning computer virus and power failures proves that human resource control
plays significant role in controlling such mess.
The result of
the third study concludes that infrastructural development plays significant
role in the computerization of accounting system through the management role
that yields administrative efficiency. The result was subjected to the testing
of chi-square (x2) at 0.05% level of significance where the
calculated chi-square (x2) is greater than the tabulated chi-square
at 4 degree of freedom.
6.2 Recommendations
Having
unveiled the findings and discussions of the study, the researcher recommends
as follows;
1. Human
resource managers should take cognizance of the fact that banking environments
are in constant flux. Therefore, there is need for the managers of Access Bank
to go situational or contingent in banking management that will help to
surmount the hydra-headed problems that the environment pose to the banking
management.
2. In as much as banks are made up of
diverse people with different interests and backgrounds, it requires that
everybody should be carried along, given sense of belonging assured of job
security, provides necessary equipments and allowed to ventilate inputs in
matters concerning their areas of specialization. This will ensure that there
is goal congruency.
3. Recruitments should be left solely for
the trained human resource managers who are conversant with the job and can
control the affairs of the bank internally.
4. Since banking problems have gone
conventionally, there is need to introduce computer banking in all the sectors
of the Access Bank. That is to day, bankers should be equipped with
commensurate factices through training and development in order to bring to the
banking problems under problems and to a manageable extent.
5. Access Bank should be developed
infrastructural to enable basic functions take its positive effect.
6. Workshops and training should be given
to the staff regularly to enable them meet up with the banking updates and
documentations.
6.3 Conclusion
The
study in no small measure has examined
the appraisal of internal control in a computerized accounting system of
Access Bank.
Computerized
accounting system is the most challenging banking task because of the
uniqueness of the system. The system can cause fraud, virus, power failure
among others. Human resource managers must be up to date in new development and
innovations so as to acquaint their staff of the tools of solving banking ever
merging problems or challenges.
Indeed,
analysis showed that effective internal control in computerized accounting
system will help in curbing fraud, corruption and power failures.
It
went further to reveal that computer technology in the banking industry via Access
Bank should be handed over to staff who are trusted in order to provide necessary
documentation and updates. Gone were the days where manual banking operates.
Employees should be trained to enable them satisfy their customers needs.
High
incidence of corruption in the administrative body should be checked to help in
balancing the accounting transactions.
Dept of
Accountancy,
Ebonyi State
University,
Abakaliki.
Dear Respondent,
I
am a post graduate diploma student of the above department I am carrying a
research on the analysis of internal control on the computerized accounting
system a study of Access Bank plc, Abakaliki branch. Attached is a
questionnaire designed to aid me in carrying out a retable research on the
study.
The
purpose of this research is purely academic and whatever information given will
be treated with utmost confidentiality.
I
shall be very grateful if you proffer solutions that will help me accomplish
this work.
Thanks.
Yours
Sincerely,
QUESTIONNAIRE
SECTION
A: BIO DATA.
PLEASE
TICK ( X ) AS
DEEMED APPROPRIATE.
1. Sex:
(a) Male ( ) (b) female ( )
2. Age (a) 20 – 30 years (b) 31 – 40 years (c) 41 – above
3. Marital status: (a) single (b) married (c) divorced
4. Educational Qualification (a) University
graduate
(b) College of education and
polytechnic (c) secondary school
SECTION B: GENERAL INFORMATION.
Please indicate your answer by marking
‘x’ in the spaces provided for each of the options.
RESEARCH
QUESTION 1
Does the management of internal control
provide adequate internal framework of checks and balances that ensure
operational efficiency and effectiveness has
1. Internal
control improved the operations of banking industry
(a) Strongly
agree (b) age (c) undead
(b) Disagree (b) strongly disagree
2. Has computerized accounting system
provides adequate internal framework that ensures operational efficiency and
effectiveness in Access Bank?
(a) Strongly
agree (b) age (c) undead
(b) Disagree (b) strongly disagree
3. Has innovation of computer technology
into the banking industry brought new developments to the Access Bank?
(a) Strongly
agree (b) age (c) undead
(b) Disagree (b) strongly disagree
4. Has computer accounting provides
internal framework checks and balances in Access Bank?
(a) Strongly agree (b) age (c) undead
(b) Disagree (b) strongly disagree
5. Has internal control through computer
accounting provides adequate documentation and updates of Access Bank?
(a) Strongly agree (b) age (c) undead
(b) Disagree (b) strongly disagree
RESEARCH QUESTION 2:
Does human resources affect on the
computerization of the accounting system in the banking industry leads to the
accounting scandals.
1. Human resource control restored the
imbalance caused by computed virus in the internal control system of Access
Bank?
(a) Strongly agree (b) age (c) undead
(b) Disagree (b) strongly disagree
2. Human resource control improved
customer satisfaction during computer power failures in Access Bank?
(a) Strongly agree (b) age (c) undead
(b) Disagree (b) strongly disagree
3. Has human resource control helped in
keeping the updates of computer operating system in Access Bank?
(a) Strongly agree (b) age (c) undead
(b) Disagree (b) strongly disagree
4. Has computerization of accounting system
restored administrative efficiency in the Access Bank?
(a) Strongly agree (b) age (c) undead
(b) Disagree (b) strongly disagree
RESEARCH QUESTION 3:
Does the infrastructural effect on the
computerization of accounting system occur as a result of administrative
efficiency?
1. Has poor infrastructural development affects
the internal control of accounting system in Access Bank?
(a) Strongly
agree (b) age (c) undead
(b) Disagree (b) strongly disagree
2. Has quality infrastructural development
help in keeping the update of accounting system in Access Bank?
(a) Strongly
agree (b) age (c) undead
(b) Disagree (b) strongly disagree
3. Has infrastructural development
attracts customers attention to the bank?
(a) Strongly
agree (b) age (c) undead
(b) Disagree (b) strongly disagree
4. Has quality infrastructure provides
adequate internal framework of checks and balances in the Access Bank?
(a) Strongly
agree (b) age (c) undead
(b) Disagree (b) strongly disagree
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