AN INVESTIGATION OF GOVERNMENT ACCOUNTING INFORMATION SYSTEM TOWARD FRAUD PREVENTION AND CONTROL IN NIGERIA
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- NGN 3000
Background of the study
According to Amidu, John, and Joshua (2011), accounting is important to the success or failure of modern business organizations. Systems are in responsible of recording, analyzing, monitoring, and assessing commercial companies' financial situations, as well as preparing documents for tax purposes and providing information support to a range of other organizational duties.
When a man in the civil service assumes responsibility for the property of another, or several others, or the community at large, the need for accountability arises; as a result, successive governments and the general public have been extremely concerned about its performance, which has been described as frustratingly poor over the years. Many intriguing and informative explanations have been provided to explain the poor performance, such as the lack of an efficient internal control system, a lack of accountability, a rise in fraud cases, and so on. According to Eze (2013), a strong fraud control plan must provide a continuous and thorough check on fraudsters' constantly changing behavior and techniques in the public sector.
According to Onoja, Ajanya, and Audu (2013), there is a need to pay greater attention to improving public sector management. The reason is straightforward: the government is the world's largest single commercial entity, and its spending patterns, as reflected in its multiple parastatals, agencies, and commissions, support a wide spectrum of economic activities. The public sector accountant's role is to establish methodical arrangements to assist management in the execution of the institution's services, whereas the public sector auditor's mission is to evaluate whether management does so effectively, among other things. According to Onoja, Ajanya, and Audu in 2013, the public sector auditor must confirm that the accounts presented were prepared in accordance with legislative and constitutional requirements and regulations, and that acceptable accounting standards were followed in their preparation.
An accounting information system (AISprimary )'s aim is to collect and record data and information about events that have a financial impact on enterprises, as well as to store, process, and disseminate that data to internal and external stakeholders for proper decision-making (Stefanou, 2006).
The development of computer technology in the 1950s heralded a new era of information storage and processing (Rashid, Hossain, & Patrick, 2001). Computer technology makes it easier to use information by allowing for the analysis of enormous volumes of data as well as the creation of reliable and timely reports. Different information systems, such as Accounting Information System (AIS), Manufacturing Resource Planning (MRP) system, and Human Resource (HR) System, have been established as a result of these varied aspects of computer capabilities. The way businesses are operated has undeniably changed as a result of information system technology (Elliot, 1992). This strategy has resulted in an increase in business productivity and transactions since firms are better positioned to achieve their objectives. As a result, the company's operations are improved. Accounting data will need to be recorded and updated more often as the number of organizations and transactions increases. Manually inputting and documenting daily transactions was inefficient and time-consuming in the past. Errors such as inaccurate data entry, poor work execution, and the heavy usage of paper goods caused havoc on corporate operations and organizational effectiveness. Accounting information systems have evolved as a result of these problems. A system that can acquire, analyze, and generate reports more quickly (Saira, Zariyawati & Annuar, 2010).
According to Aremu and Adeyemi (2011), aside from statutory requirements, government parastatals seldom give sound accounting a second thought, and the bulk of them have collapsed prematurely due to flaws and ineffectiveness of accounting systems. The aforementioned problems have persisted due to insufficient accounting information creation and usage in the Nigerian public sector. The bulk of Nigeria's public sector lacks an accounting information system, which exacerbates issues such as fraud and corruption.
1.2 Statement of the problem
Government accounting systems have been demonstrated to be flawed, and the practice of adopting accounting systems from developed nations is commonly regretted. The problem is that the accounting systems of the government are entrusted to a small group of government employees. Poor internal control, a lack of government-developed management accounting concepts, a lack of government-developed accounting concepts, incomplete, inaccurate, and late transaction records, an ineffective closing date of accounts, an unauditable system, a shortage of qualified staff to do accounting work, and a lack of a good accounting system are also included. According to Ukwu (2006), one of the most efficient ways to deal with these difficulties is to have competent government auditors who are not corrupt in the performance of their jobs. Despite the moral check provided by the auditing organization, fraudulent actions continue to proliferate. Government accounting personnel are becoming more prone to regularly embezzling government cash, implying a lack of responsibility. As a result, it is necessary to evaluate Nigeria's government accounting information system in terms of fraud prevention and control.
1.3 Objective of the study
The focus of this study is to critically evaluate government accounting information system toward fraud prevention and control in Nigeria. Specifically the study seeks to:
- Evaluate the causes of fraud and misappropriation of funds in the public service
- Examine the role of the accounting information system in ministry of finance.
- Investigate if accounting information system will be effective in fraud prevention and control.
1.4 Research Questions
1. What are the causes of fraud and misappropriation of funds in the public service?
2. Will accounting information play any role in the government sectors operations?
3. What are the role of the accounting information system in ministry of finance in Jigawa State?
4. Will Accounting Information System be effective in fraud prevention and control in Ministry of Finance?
1.5 Research hypothesis
HO: Accounting Information System will not be effective in fraud prevention and control in Ministry of Finance.
HI: Accounting Information System will be effective in fraud prevention and control in Ministry of Finance.
1.6 Significance of the study
A good accounting information system operated in any sector ,organization is an indispensable aid to effective management. It assures management of the reliability of decision taken by them and that these decisions are in accordance with goals to be attained. Findings from this study will create great awareness to the government stakeholders, auditors and civil servant of different ministries or various businesses or other managers. It will place emphasis on the importance of appropriate, complete and reliable set of records using accounting information system for such purpose as quick, correct decision making and effective planning and control of activities of their business in other to detect, prevent and control fraudulent activities. Finally the result of the study will add to the body of existing literature and serve as a reference materials to both scholars and student who wishes to conduct further studies in related field.
1.7 Scope of the study
The scope of this study borders on an appraisal on Government Accounting Information System toward fraud prevention and control. The study will further examine the cause of misappropriation of fund among government workers and inquire if AIS will play any relevant role in curbing such corrupt practices. The study is however delimited to Ministry of finance in Jigawa State.
1.8 Limitation of the study
In carrying out the research there are few factors that posed a lot of constrain. Such as the attitude of the respondent and time constraint. On the attitude of the respondent who are civil servant, most of them were unwilling to respond to the questions on the instrument owing to the sensitivity of the topic even when the researcher pleaded anonymity of their identity. On time, during the study, the researcher also engaged in other academic activities which limited total attention paid to the survey. However all these constrain was downplayed to give the best result of study.
1.9 DEFINITION OF TERMS
Accounting: It's the systematic process of recording, communicating, summarizing, analyzing and reporting of financial information.
Accounting information: This refers to the system of storing, processing of financial and accounting data that are used by decision makers.
Accounting information system: it's defined as a computer based system that increases the control and enhance the cooperation in the companies.
Governmental Accounting: The composed activities of analysis, recording, summarizing, reporting and interpreting the financial transactions of governmental units and agencies.
Effective Accounting Systems: An effective accounting system is a type of system that is accurate, useful and timely. Its purpose is to provide information for external entities, such as tax agencies and investors, and for internal purposes, such as evaluating efficiency and profitability.
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