IMPROVING THE EFFECTIVENESS OF ACCOUNTING SYSTEM IN EDUCATION SECTOR. A CASE STUDY OF AUCHI POLYTECHNIC, AUCHI
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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, 2002, p9). 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, 1995), 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, 1996). 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 (1999) 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, 2001). 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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