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THE ROLE OF ACCOUNTING IN SOCIETAL DEVELOPMENT (IN THE NIGERIAN CONTEXT)
1.0 INTRODUCTION
This research will investigate the accounting profession in depth and investigate its role in societal evolution. According to a study of accounting evolution, accounting processes are reactive since they evolved primarily in reaction to business needs.
Accounting process development has also been linked to a country’s economic and societal development. History demonstrates that the more complicated and broad the accounting process grows, the higher the level of Civilization or development.
From Picoli’s time to the present, accounting has seen great changes and expansion all around the world. For example, a large economic and societal force threw the accounting profession into new boundaries and duties throughout the first sixty years of the twentieth century.
Factors contributing to this growth include an increase in the population of large corporate businesses in business affairs through taxation and business regulations, as well as technological advancement, particularly in the area of computerization – which has rapidly changed the process of data processing. These variables have all played a significant role in the evolution of the accounting profession over the years.
The computer’s role in accounting has facilitated traditional operations like as payroll, cost accounting, and general bookkeeping. It’s also utilized for analytical applications like forecasting, cost-benefit analysis, and so on. Accountants are required to demonstrate a dedication to public service beyond their commitment to personal economic gain as professionals.
Accountants acknowledge the specific regard. They are obligated to labor for the betterment of society because they enjoy it. In addition to their societal obligations, accountants have the analytical and evaluative skills required to solve the universe’s ever-growing issues.
Accountants’ distinctive abilities, as well as their independence and ethical standards, enable them to make a substantial and unique contribution in areas such as defending the public interest, maintaining the environment, and controlling and improving public programs.
Accountants’ jobs have grown in breadth in recent years. Accounting career rewards include installation of accounting system, auditing and investigative administration of social activities, and a slew of others. It is also important to note that as the scope of accounting expands, so do the complicated difficulties that accountants must face. This is why qualified accountants are required in a variety of fields (i.e. to ease the accounting problems facing the management of companies and the society in general).
Aside from supplying accounting information, the accountant also provides his opinion on a wide variety of representations such as sales data, lease agreements, and so on, or the fact that accounting is not only for the advantage of the individual accountants must be aware of the societal benefit.
This is due to the accounting profession’s primary goal of social responsibility and public service. As a result, accountants must have a social attitude toward their occupation. Remember that the accountant is obligated to do his obligations with reasonable care, skill, and diligence. He must demonstrate his honesty and credibility to a public that relies on his judgment and opinion.
1.2 STUDY OBJECTIVE
This study is intended to achieve the following goals in light of the purpose of accounting and how it affects society in general. Identify accounting information users Emphasize the value of accounting information to its various uses Emphasize the role of accountants in providing accounting information to users. Accounting information’s contributions to societal development
1.3 THE IMPORTANCE OF THE STUDY
It is believed that after completed, this study will be able to educate company management on how vital it is to adapt their accounting information requirements in such a way that they may make decisions that will help maximize the business’s objective(s).
Be able to educate shareholders (both current and prospective) on how to look for profitable and viable businesses to invest in. Provide prospective employees with knowledge that will allow them to explore for organizations that will offer them stable employment through long-term growth.
Equip trade uncoils with techniques of calculating demands for higher salaries and improved labor conditions to offer creditors with an acid test to determine whether a prospective debtor can keep to the terms of loan; assist the government and its agents in effective revenue production and allocation; assist customers in using accounting data to assess a firm’s viability (with regard to long-term contracts);
sensitizes accountants to using accounting information for company purposes Bring accountants to mind in terms of their roles in society growth.
1.4 PROBLEM STATEMENT
The accounting profession is experiencing ‘teething’ issues, some of which are as follows: Professional Abuse and Indiscipline: This is when an accountant, for example, violates the accounting profession’s ethics. The accountant in this case forgets that he has a fiduciary duty to his clients and the public in general.
There have been cases where accountants advise their customers to avoid paying taxes by purposefully declaring a large operating loss for tax reasons while the client actually made a profit throughout the basis period of assessment. This false declaration is valid not only for tax purposes.
In order to help their clients receive loans from financial institutions, accountants falsely declare very high profits in order to increase their client’s chances of securing a loan. Management and top government officials impose: Accountants are reduced to the level of terms paper tigers at offer times. They can only bank and not bite. These officials have threatened them.
Failure to follow such an injunction may result in the accountant’s duties being terminated (or even death). As a result, accountants keep their eyes closed in such cases. Failure to install and operate a suitable internal control system impedes effective audits.
This is because there are no sufficient checks and balances in place to limit the excesses of an organization’s administration and workforce. Inadequate Data Processing Method: Nigeria continues to struggle with the manual system of recording and processing financial data into useful information. As we all know, this system is time-consuming and prone to error (s).
Due to the high cost of each outlay, computers and data remain out of reach for many organizations (particularly small businesses). If this is made available to interested purchasers at a reduced price, the headache associated with the manual way of operation will be reduced to a bare minimum. The Nigerian Institute of Chartered Accountants (ICAN):
This body is one of the issues that the accounting profession must contend with. Graduate accountants are frequently denied employment because they lack a certificate proving membership in this body. In recent years, it appears that passing the ICAN Exams would be easier for a camel. In fact, individuals who are chartered in another country but find themselves in Nigeria are not recognized as professional accountants unless they charter with the ICAN. These are the issues that the researcher can mention (among many others).
These and other comparable issues cannot be resolved without such study. As a result, throughout the study, the researcher would advance solutions to the problems while also making highly beneficial recommendations that would both alleviate these problems and improve the prospects of accounting’s role in the growth of Nigerian society.
1.5 FORMULA HYPOTHESIS
The researcher has the following propositions to make in relation to the challenges described above as well as the study’s objective:
HYPOTHESIS ONE Ho: Accounting data is irrelevant to its users. Hello, accounting information is critical to its users.
TWO HYPOTHESIS Ho: Nigerian accountants have not contributed to social development. Hello: Nigerian accountants have been involved in societal development.
THREE HYPOTHESIS Ho: Accounting information has no bearing on society progress. Hello, accounting data is important for society growth.
FOURTH HYPOTHESIS Ho: An adequate internal control system is not required when providing accounting information. Hello, an adequate internal control system is required for valid accounting data.
1.6 STUDY SCOPE AND LIMITATIONS The research will look at the externalist trade of accounting, the goal of accounting, the users of accounting information, the issues that accountants face in modern Nigeria, and the function of accounting in societal progress (in Nigeria).
Academic overload, insufficient funds, time, and other ancillary issues hampered this researcher’s work. The data needed for this project was difficult to obtain since the respondents, while cooperative, were not always available when assistance was required.
Nonetheless, it is intended that the study will represent the accounting profession’s role in societal growth. The researcher’s conclusion is hoped to be empirically relevant to the people of Nigeria.
1.7 TERM DEFINITION DISTRESS IN THE BANK:
This is a bank’s status of being in difficulty due to a lack of funds.
BUDGET A financial plan that covers a time, usually one year, and includes an organization’s income and spending as well as policy to be implemented during the period in order to meet the established benchmark.
CLIENT: A corporation or individual to whom an accountant owes a professional duty to provide specialized services for a set length of time.
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THE ROLE OF ACCOUNTING IN SOCIETAL DEVELOPMENT (IN THE NIGERIAN CONTEXT)
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