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This study examined the effect of accounting information system in the accounting practices in some selected commercial bank in Ilorin Kwara State. The specific objectives are to identify various AIS adoption and Accounting practice used by the selected commercial bank, to sustain the impact of AIS adoption on accounting practices in the selected commercial bank, find out the important of AIS adoption on accounting practice improvement and establish are the limitations of AIS adoption to implementing full accounting practice.

The study was carried out in Ilorin, Kwara State. The study was based on the adoption on AIS by commercial banks in Ilorin, Kwara State capital and not the whole Kwara state. A total number of 7 banks were selected, these banks includes First bank plc, Skye Bank, Access Bank, United Bank of Africa, GT Bank, Stanbic Bank and Fidelity Bank. Both primary and secondary data are used, Regression analysis was used to test the hypothesis of study.

            The findings of the study revealed that accounting information system devices (F (4, 51) = 84.091: P<01) contributed significantly in the efficiency of accounting activities in the selected service firms. Thereby, the hypothesis of the study was rejected. It was concluded that ICT adoption devices are spontaneously and simultaneously appropriate for selected service firms engaging in accounting activities, also revealed that there is significant relationship between accounting activities and ICT adoption. Based on the findings of this research, the study recommends that service firm: should embrace familiar and friendly accounting information systems application as a major accounting practices in their various firms.



  • Background of the study

Information and the information system are terms with increasing impacts on the enterprises, invading the models and the management analysis fields. Exactly as in any other information system, the economic information system contains news and information from different fields, but most of them derive from the economic database. Management is constantly confronted with the problem of decision making especially knowing that resources are relatively scarce and limited. It is therefore pertinent that good accounting information be made available for proper and accurate decision making, maximization of profitability and optimal utilization of scarce resource.

Accounting is the language of business as it is the tool for recording, reporting evaluating economic events & transactions that affect business enterprise. It processes all documents of financial performance from payroll, cost, capital expenditure & other obligations to sales revenue & owner’s equity. It provides financial information about one’s business to the internal & external users, like managers, investors & others. It is sometimes referred to as a means to an end, with an ending being an end to the decision that is helped by availability of financial information. Management decision is one of the most important facets that pervade all organization and constitute its progress or failure in actualization of pre-determined goals and objectives. For this reason, for management decision to have a “fair view”, qualitative this is attributable to inadequate and inappropriate use of accounting information (Clinton et al. 2011).

According to the Romney and steinbart (2000), Accounting Information Systems (AIS) can be defined as “a specialized subsystem of the IS that collects, processes, and reports information related to the financial aspects of business events “. Accounting Information Systems (AIS) have been widely adopted by organizations within the public – and private sector (Rom and Rohde, 2007). It covers not only the intersection of accounting and information system, but also accounting and information system as separate domains as noted by Steinbart (2009). AIS also covers b0th structured and unstructured financial and non-financial information for decision making, management control and planning. In recent times there is rapid change in firms front of globalization technology, part of this changing is an accounting system, if there will be any change this depends on data and information, to improve an international accounting system information or to make it more successful, business should collect high quality of data which lead to high quality of information about small and medium enterprise, these information will be the way to planning, controlling and make right decision. Indeed, Accounting Information System (AIS) is vital to all organizations (Borthick and Clark, 1990; Curtis, 1995; Rahman et al, 1998; Wilkinson et al, 2000).

An accounting system is one of the most effective decision-making tools of management as it provides an orderly method of gathering information about the various business transactions so that it may be used as an aid to operate the business (Copeland and Dascher 1978). Accounting information helps managers to understand their tasks more clearly and reduce uncertainly before making their decisions (Chong, 1996). However, the quality of decisions taken by manager rests upon the substance and accuracy of information provided by the system available to them. Talking about uncertainty as a lack of information compared to what a decision-maker needs to make a rightful decision (Galbraith, 1973), and the less managers are able to understand and predict the outcomes from their actions, the more uncertainty there will be. It is noteworthy to say here that Accounting Information System derives its source from accounting data. Accounting System, in recent times, has tended to be a system of information that does not stop at limits of data and financial information, but also it includes data and descriptive and quantitative information which is useful in decision making for user distinct with plurality and diversity. Such users include current and potential investors, lenders, suppliers, creditors, customers, governments and the public in addition to the administration, which is it responsibility to prepare the accounting programs and displaying it, that information must be capable of achieving the goal that it has been prepared for, hence the role of Accounting Information System for effective decision making, planning and controlling cannot be over emphasized.

The rapid and successive developments in technology, especially information technology created an opportunity for companies to invest in such areas to achieve a competitive advantage. It is evident that installing advanced accounting information systems can support companies to achieve higher levels of financial and managerial performance. Incorporating Accounting Information System (AIS) into the field of Information and Technology systems (IT) creates opportunity to provide information that can assist different managers in the monitoring, evaluation, planning and decision-making functions. In addition to several economic benefits, the company is also likely to benefit from better cost control, assistance in improving the quality of products and services offered to customers. In this context, Grande et al. (2012) have mentioned that the Accounting Information Systems (AIS) are designed to help managing and controlling firms’ economic-financial areas. According to Alsharayri (2012) accounting system has tended to be an information system that does not stop at the limits of financial information, but also includes descriptive and quantitative data which is valuable in decision-making.

  • Statement of the problem

Any business irrespective of its size has to be effectively and successfully managed for it to survive, grow and remain sustainable. Many businesses are set up around the globe yearly and in a similar way; many are faced with different challenges which they are unable to overcome and thereby makes the end of the business (Dasanayaka, kankanamge and Sardana, 2011). Small and medium Scale Enterprises (SMSE) are the building blocks of any growing economy. Small and medium scale enterprises play crucial role in every country economy such as: employment generation, rural development, youth empowerment, contribution to National Income and growth, spread and development of adaptable technology and regional balanced growth channel. These enterprises are faced with diversity of problems in the Nigeria due to numerous domestic and global economic problems and policy inconsistencies. (Hessels & Parker, 2013). If companies are able to improve their computerized techniques of internal control mechanism according to AIS, they will be able to ensure the reliability of financial information reliability. However, if the controls are used properly there will be effectiveness and efficiency which will result in better financial information reliability. It is noteworthy to say here that the higher the usage of AIS the more effective and efficient every small and medium enterprise will be. Hence, small and medium enterprise needs to apply the accounting information system to improve the quality of service through planning, controlling and making reliable decisions by managers. Therefore, with this assertion, this study will examine the impact of accounting information system on the accounting practices in some selected commercial bank in Ilorin, Kwara State.

  • Objectives of the Study

The general objective of this study is to examine the impact of accounting information system on the accounting practices in some selected commercial bank in Ilorin Kwara State. The specific objectives include:

  • Ascertain the impact of AIS adoption on accounting practice in the selected commercial bank
  • Identify various AIS adoption and Accounting practice used by the selected commercial bank.
  • Establish are the limitation of AIS adoption to implementing full accounting practice.
  • Find out the important of AIS adoption on accounting practice improvement.
    • Research Questions

This study provides answer to the following questions:

  1. What is the impact of AIS adoption on accounting practice in the selected commercial banks?
  2. What are the various AIS adoption and Accounting practice use by the selected commercial bank?
  3. What are the limitation of AIS adoption to implementing full accounting practice?
  4. What is the important of AIS adoption on accounting practice improvement?
    • Hypotheses of the Study

To achieve the objectives of the study, the hypotheses were formulated as follows:

Ho:      Accounting information systems lead to better decision-making by managers.

Hi:       Accounting information systems do not lead to better decision-making by managers.

  • Significance of Study

Organizations can be managed effectively and efficiently based on planning, controlling and the decisions taking by the manager(s) of the organization. Thus, in order to avoid financial disasters through wrong and ineffective decisions, there are many financial tools available which can be used to support the planning, controlling and decision-making process in organizations, which, when not used, may lead to management inefficiency. One tool that has proven to be readily available in the promotion of quality planning, controlling and decision in the organization is the accounting information system (AIS). While this is common in the developed countries and highly organized large firms in Nigeria, its contributions to the effectiveness of small and medium scale enterprise in Nigeria is yet to be known. This could be due to poor accounting education and inaccurate, outdated and in some cases absence of financial record keeping among SME operators. Moreover, to compete favourably in today’s flexible and complex business environment, different information is required for these diverse purposes, therefore organizations have to focus on different accounting tools such as AIS to support their operations.

  • Scope of Study

This study was carried out in Ilorin, Kwara State. This study was based on the adoption on AIS by commercial banks in Ilorin, Kwara State capital and not the whole Kwara state. A total number of 7 banks were selected, these banks includes: First bank of Nigeria plc (FBN), Skye Bank, Access Bank, United Bank for Africa (UBA), Guarantee Trust Bank (GTBank), Stanbic Bank and Fidelity Bank.

The following are the limitations encountered in the course of this research:

  • Time: The interval between chosen of project topic, the submission of the project and the preparation for the degree exams is very infinitesimal, but these are mandatory activities and hence, the researcher was deprived of many other activities to ensure the completion of the project.
  • Data sourcing: Data gathering for this research is another limitation. People are not willing to give information about their business.
  • Definition of Terms

Bank: is a financial institution that accepts deposits from the public and creates credit. Lending activities can be performed either directly or indirectly through capital markets.

ICT: Information Communication Technology

Stakeholders: a person or organization with legitimate interest in a given situation, action or enterprise.

AIS: Accounting Information System (AIS) is a structure that a business uses to collect, store, manage, process, retrieve and report it financial data so that it can be used by accountants, consultants, business analysts, manager, chief financial officers (CFOs), auditors and regulatory and tax agencies.