The Role of Professional Accountant in a Depressed Economy
CHAPTER ONE
Objectives of the Study
The objectives of this study are:
- To examine what a depressed country is all about.
- To ascertain the factors responsible for a depression in an economy.
- To ascertain the role professional accountants can play in a depressed country.
CHAPTER TWO
Review of Related literature
Conceptual Issues
Frank (1993) defined Accounting as the process of identifying, measuring and communicating economic information to permit informed judgments and decision by users of the information. Soyode (2002) also described accounting as the act of measuring, communicating and interpretation of financial activities. It serves as a business language being practically used by nearly everybody in one form or another almost on daily basis. Accounting is equally defined as an act of recording, classifying and summarizing in a significant manner and in terms of money, transaction and events which are in part, at least, of a financial character and interpreting the result thereof. (American Institute of Certified Public Accounts. AICPA 1975)
Shillinglaw and Meyer (1983) defined Accounting as the process of measuring and identifying economic variables in individual businesses and communicating information based on these measurement to users who need to make informed judgment. Ibrahim (2009) viewed accounting in several ways as an activity performed by accountants and their surrogates; as a system comprising several interrelated and interdependent parts; as technique of management (in a collective sense) and as discipline of study.
Accounting is best viewed as an information system (Gaffikin 1993). This information has been recorded and put into useful and meaningful context and transmitted to interested users. In order for the information to be useful for decision maker, it must possess all aspects of qualitative characteristics. Such information must be understandable, relevant, reliable, objectivity and in time for the needs of the users. Indeed, if such information is to maintain its required characteristics, it should develop well-defined procedures for recording and reporting of the financial information to users. Gaffikin (1993) defined accounting as a systematic method of retrospective and contemporary monetary calculation, the purpose of which is to provide a continuous source of financial information as a guide to future actions in markets.
For the purpose of this study, Accounting is being defined as an information function that provides financial information and other information for rationalizing economic decisions concerning an economic entity made by decision makers who are insiders or outsiders to the economic entity. The roles of accounting in economic have looked from different angles. For instance, when the capital market was discussed as an obvious way of tapping domestic saving, the need for financial reporting was emphasized. In discussing taxation for economic development, bookkeeping was considered an important factor for the success of the income tax system.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.
This study was carried to the role of professional accountant in a depressed economy. Access bank form the population of the study.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain the role of professional accountant in a depressed economy. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of the role of professional accountant in a depressed economy
Summary
This study was on the role of professional accountant in a depressed economy. Three objectives were raised which included: To examine what a depressed country is all about, to ascertain the factors responsible for a depression in an economy and to ascertain the role professional accountants can play in a depressed country. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from access bank. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
Based on our findings in this study, we can conclude that the accounting not only contributes directly at the economic development of a country but also sustains the national economic planning by providing data and specific instruments. Hoarau and Teller (2001) stated that the accounting must be oriented towards “”substantial value”, that is to say integrating resources that ensure long term development potential of economic entities and their environment, not only towards “shareholder value
Recommendation
This study recommended that accounting education should be an impetus for the application and implementation of existing and potential accounting system, techniques , procedure and data to enhance economic development in Nigeria .As a result, there is a need to improve corporate financial reporting and all Accountants and Auditors are to duly registered and licensed before working as accountants and auditors
References
- Alara .O. (2017), The role of Accounting in National Development, Unpublished Article Accessed on 25 November 2017
- American Institute of Certified Public Accounts. AICPA (1975). Professional Accounting in 30 countries. New york, USA
- Association of Chartered Certified Accountants (2012), “The Role of Accountancy in Economic Development”, (http://www.accaglobal.com/ content/dam/acca/global/PDF technical/global-economy/pol-tp-raed.pdf, accessed 7/1/2018
- Bernard C. (2009) Encycolpédie de Comptabilité, Controle de Gestion et Audit, Paris: Ed. Economica; a ete president des jorys du I( I) 657-668
- Enthoven, A.J .H (1973) “Accounting and Economic Development Policy” Netherland :Amsterdam, North Holland Publishing Company , Enron S.B (2001) How the Fraud Worked: Journal of Accountancy, 1(1) 20-21
- Frank W(1993), Business Accounting1, 7th Edition, Pitman Publishing , London
- Gaffikin M.J (1993), Principles of Accounting, 3rd Edition. Sydeny. HarcourtBrace Jovanovich Publishers.
