OPPapers.com

Computerisation Of Banks

CHAPTER ONE
INTRODUCTION

1. BACKGROUND OF THE STUDY.
The world as a global village has become so computerized that the use of computers is inevitable therefore makes them very important in all aspect of human life especially on the accounting field.

Accounting system is a procedure that is designed by an organization for capturing all financial events and data in an organization. An accounting system after capturing and gathering all events and activities has the ability to process them and communicate them to interested parties for decision making. Financial institutions in many countries were so much concerned about the switch from manual to computerized accounting system.

It must however, be emphasized that manual accounting systems has not been eliminated completely but reliance and dependency on them has been reduced drastically due to the emergence of computerized accounting systems. While many financial institutions responded quickly to the use of computers in accounting systems, others still face difficulties in adapting to these computerized systems of accounting. Most organizations have resorted to the use of computers in their accounting systems because of the inherent accuracy and processing speed of this automated accounting system.

They also have resorted to it because of the efficiency which leads to higher profitability. It is obvious that this computerized accounting system has led to the reduction of time; cost and quick generation of reports since one no longer have to wait a whole day to get a report.
Although the emergence of this system comes with a number of benefits, it still has got some problems associated with it. One inherent problem with this new system of accounting is the high cost of operations. Day in and day out, computers that become obsolete need to be replaced or upgraded to meet acceptable standards.
In addition, this new system has brought about computer crimes. For example, the Equity...