THE IMPACT OF ACCOUNTING PROFESSION AND PRACTICE ON NIGERIA ECONOMY (A Case Study of Kayode Olayemi & Co Chartered Accountancy)
TABLE OF CONTENTS
Table of content
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Research Question
1.4 Purpose/Objective of the Study
1.5 Significance of the Study
1.6 Scope of the Study
1.7 Limitation of the Study
1.8 Study Plan
1.9 Definition of Key Terms
2.0 Literature Review
2.2 The Accounting Profession
2.3 Formation of Professional Bodies
2.4 Role of Accountant.
2.5 Challenges of the Professional Accountants
2.6 The Nigeria Economy Scene and the Accountants
2.7 The professional Accountants and the Anti-Corrupted Crisis
2.8 Accounting Profession and Economics Restructuring.
3.0 Research Methodology
3.2 Research Design
3.3 Study Population
3.4 Sampling and Sampling Techniques
3.5 Data Collection Instrument
3.6 Data collection Instrument
3.7 Limitation of the Methodology
3.8 Limitation of the Methodology
4.0 Data Presentation Analysis and Interpretation
6.0 Data presentation Analysis and Interpretation
7.0 Testimony of Hypothesis
8.0 Summary of the Chapter
5.0 Summary, Conclusion and Recommendations
1.1 BACKGROUND OF THE STUDY
Accounting as a unique profession is a disciplined one, there is needs to be disciplined from day one, as an accountant, the discipline starts from updating one’s knowledge by studying day and night.
The word “Probity and Accountability” are regarded as which words of accountants.
The history of accounting started as far back as 5000 Bc when the temple of summer operated tax system that was brought under their control vest stock arid estates. It then became necessary from those priests to develop accounting method to maintain managerial control of transactions and to give account of their management over these holdings.
Institutionalization of accounting as a profession started in 1853 from Britain, the main objectives of this are to regulate the profession in an economy and to determine from time to time.
Accounting as a discipline and noble profession commands respect from all other disciplines and social recognition as it competitive and readiness to handle the issues and challenges thrown forth.
1.2 STATEMENT OF THE RESEARCH PROBLEM
The accountancy profession over the year has been seen by the public mainly from the perspective of the work of an auditor who comes to audit from the year end and all they see is just a one page report to shareholders.
The fate of the young and upcoming accountants in Nigeria in the face-off between the Association of National Accountants of Nigeria (ANAN) and Institute of Chartered Accounting of Nigeria (ICAN) and the possible effects on the profession is another thing that needs to be checked.
The problem of the study in view of the above, therefore are as follows;
⦁ Difficulties in weighting the impact of the profession in private sector of the economy with each other.
⦁ Problem of knowing the role of such accounting report on the economy when considering a single entry
1.3 OBJECTIVE OF THE STUDY
The main objective of this research is to look into the accounting profession and the impact in economy. The project is designed to enlighten the public that the work done by professional accountants is very much more than the auditing and book keeping. The importance and professional body in full professional cannot be over emphasized in an economy.
This write up will therefore analyze the issue of Association of National Accountants of Nigeria (ANAN) and institude of chartered Accountant of Nigeria (ICAN) make recommendations in an economy.
1.4 SIGNIFICANCE OF THE STUDY
The study would increase the stock and accountancy profession-knowledge and the research. It affords the researchers the opportunities to bring the attention of the public to what the profession is all about and it’s relevant in an economy. The study would also serve as a useful reference material to students of accounting and future researchers would find this work valuable.
1.5 RESEARCH QUESTIONS
i. What is the historical background and accounting profession and accounting practice?
ii. What are the reasons for accounting practice and profession?
iii. What are the steps involved in accounting practice and profession
iv. Does the accounting profession and practice have any positive impact on the economy?
v. Do the regularity authorities have role and impact on the accounting profession and practice?
vi. What are those effect of accounting profession and practice on Nigeria economy?
1.6 SCOPE OF THE STUDY
Looking at the accounting as a profession, it constitutes the premises of this project work, professional accountants have crucial role to play in the stream of an economy. The kinds of professional’s service they render have direct relationship with honesty, accuracy, transparency, probity and accountability. The means through which the impact of the profession can be felt is what the write up is set to focus on.
1.7 LIMITATION OF THE STUDY
Research of the nature is limited constrained on stationary transportation, and many others. There is also insufficient capital (funds), materials and time frame.
1.8 STUDY PLAN
The research work has been divided into five chapters for easy presentation of the fact and figures gathered.
Chapter one contains the background of the study, statement of the problem, justification of study, study plan and definition of terms.
Chapter two consists of the literature review.
Chapter three highlighted research methodology.
Chapter four discussed data presentation or analysis of data.
Chapter five deals with summary, conclusion and recommendations and the bibliography.
1.9 DEFINITIONS OF KEY TERMS
⦁ ACCOUNTING: This is the process of recording, classifying, selecting, measuring, interpreting and communicating financial data.
⦁ ACCOUNTING PROFESSIONS: These are professional bodies for example, Institute of Chartered Accountants of Nigeria (ICAN) and Association of National Accountant of Nigeria (ANAN).
⦁ ECONOMY: Simply means avoidance of waste of money, strength or anything else of values. Also to control and manage money, goods and other resources of a community, society or household.
⦁ PROVISION: Simply means occupation that is one requiring advance education and training e.g. Law Accounting, Architectures, Medicine, it is often called learned.
⦁ PRACTICE: This simply means frequent of systematic repeated exercise in doing things over and over again.
2.0 LITERATURE REVIEW
This chapter will put light into area and this noble profession called “Accountancy” the bodies that regulates or enhance it full professionalism, the roles challenges and it relevance in an economy.
2.2 THE ACCOUNTANCY PROFESSION
Some and the first world documents dated 5000 Bc. Then the needed of account for holdings of wealth prompted the development of a form of writing referred to as script. The temple priest of summer operated a tax system that was brought under their control vast stock of grain animals and estate it was necessary for those priests to develop accounting method to;
i. Maintain management control of collection, loan, repayment and other transactions.
ii. Gives an account of their management over holding. Another writer has described in details some of their accounting records, he notes “Daily summary where they collected into weekly summaries and so on to early and ever multi-yearly summaries” (Raymond et-al 1981) the Egyptian civilization covering a broad span from about 3000 Bc to %250 Bc is described as one in which great construction projects were operation of large stone quarries and large scale transportation of building materials out this operation both business and government affairs.
In Babylonia textile mills in existence about 600 Bc, production control records were kept and women worker were usually paid based on the quality of production, in 1494 an Italian man LUCA PACIOLI included a section on book keeping.
By the 1700s, accountants were organized as financial adviser. In 19th century, One sees the emergence of accountant as business adviser, as frequently invited to look financial problems.
The advance learner dictionary of English defines accountancy as a profession of an accountant, he also defines accountancy as a statement of money paid or received on goods and services.
Mensah (1977) defines an accountant as the violation of professional accountant that deals with keeping of records, and accountancy deals with the preparation and publication of financial statement.
According to him, accounting is the practice of gathering, classifying, summarizing and recording of financial and economic data in chronological order in accordance with users of the information.
In carrying out this function, two professionals are required, they are:
i. The Accountant
An accountant in his own part is a person that is qualified in the field of accountancy and granted a certificate of practice by appropriate professional bodies. In Nigeria case, we have ANAN and ICAN practices as an accountant ( i.e to gather, classify, summarize record and interprets financial information for decision making by the users of that information).
An auditor in his own field is a person that comes out “ an independent examination of an expression opinion on the financial statement of an organization by an appointed auditors in pursuance of that appointment in compliance with any relevant statutory obligation. Auditors in accordance with the terms of appointment and professional pronouncement” Ayinla (1999).
The current for an increasing number of company and the impact of automation (the use of computer) to sort transactions taking over this transactional roles of accountants in bank-keeping and financial reporting. Most organization now used computers to post transaction and to prepare management.
In our society, accountants are usually employed in public accounting and private industry accounting sector. With each area specialization is positive. Accountant may for example be an expert in auditing system development, budgeting cost of tax accounting..