THE ROLE OF ACCOUNTANT IN THE ECONOMIC DEVELOPMENT OF NIGERIA
CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY: The concept of Economic Development has to do with innovation and improvement in people's quality of life; it is about a sustained rise in people's standard of living over time, whether in advanced or less developed countries, nations, government superiors state of affairs or superiors they currently enjoy. Agbebuyi (2020) assert that to do this, intentional efforts must be taken to establish people-centered policies that increase their potential to produce and earn more. This will materialise as an increase in the economy's gross domestic product (GDP) and, as a result, an increase in the size of per capita income. When this occurs on a consistent basis, it has a favourable influence on residents' quality of life. Development is believed to have occurred.
Despite the numerous development and rolling plans painstakingly drawn out by the government since Nigeria's independence in 1960, Nwafor (2019) opined that the place of economic growth and development has yet to fulfil the aspirations of the nation's founding fathers. Despite significant investment in the construction of various economic projects, the outcomes have been disappointing. Indeed, the fact that the Nigerian economy is currently in a quagmire demonstrates the inadequacy of previous efforts to pull the nation up by its bootstraps through the use of development and rolling plans. Thus, in a less developed country like Nigeria, the basic thrust of development policies is to provide as many people as possible with the means of overcoming the helplessness and misery caused by a lack of food, health, education, and security of life and property, all of which pose serious challenges to their longevity.
This is the basis for selecting a topic that examines the function of accountants in economic progress.
To begin, an accountant is someone who is proficient in keeping, evaluating, documenting, or reviewing an organization's or nation's accounting. Accountants play a critical part in the economic growth of Nigeria. They also efficiently contribute to the growth of several corporate organisations in Nigeria, for example (Nigeria Bottling Company). Accountants' roles must never be underestimated if the country's goals and objectives are to be met.
Accounting, according to Aneo(2021), is clearly about providing financial information needed to make economic decisions, notably about the acquisition and use of finite company resources, as well as the reduction of waste in the wealth creation chain. This professional specialty entails the systematic collection, categorization, recording, analysing, interpretation, and dissemination of information based on monetary data. Such resources, which are the assets and liabilities, productive activities, and profitability of a firm, are required by owners and managers equally in order to assess the health of the organisation and determine changes in the stock of shareholder value.
Accounting, according to Professor Charles Magers, includes four key functions: communication, measurement control, and decision making. Accounting as a mode of communication entails the filing of financial reports to various economic units. In terms of measurement, accounting as a major of wealth based on the initial cost of an aim that has recently emerged in assessing efficiency of operation and performance.
Accounting as a control mechanism is exerted through the production of book-keeping records and legislation, as well as the professional body's standing to act as an impartial witness and carry out the audit role.
As a result of actions, information is transmitted using a consistent measuring system and findings that can be relied on when making decisions. The government may utilise published accounting information to determine the extent to which social amenities are provided to the public; they may also use this information to determine what is owed in taxation and government tribute.
This accounting information may also be used to prepare the country's budget and determine how to create money and how to spend revenue. Accounting information is also necessary in an economy to satisfy the stated aims and purpose (profit or gain) in the economy, and it is the accountant's responsibility to prove such accounting information.
Aside from providing information to the public, proprietors, and even the government, the accountant has played the following critical roles in the nation's economic development process over time: record keeping, which assisted the merchant in determining the value he added to his wealth at a given period. Professional leadership in financial information, internal control measures, attestation functions, and tax functions, among other things.
Furthermore, accountants provide financial reports to determine a country's financial situation, execute audit functions, evaluate financial reports, and lastly, offer actions and strategies to improve the economy's performance.
1.2 STATEMENT OF PROBLEM
1. To find out the extent at which the accountant, provide audit reports. Do audit reports still add credibility to today financial statement?
2. Are the information provided by Accountants still effective in making business decision today?
3. Are the audited aliting information provided helpful to tax official in assessing the taxable in an organization?
1.3 PURPOSE OF THE STUDY
As a result of the prevalent condition of Nigeria economy and dwindling of most business in recent times there is need to realize how significant the role of an accountant was in order to develop to economy efficiency. And for this reason, there are also need to study the importance of accountant in the economic development of Nigeria.
The purpose of this study is this:-
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To find out how production of correct accounting information has led to profitable economic decision.
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To determine how the proper accountability is a means of safe guarding the assets of the establishments.
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To investigate the influence of nations ability to employ the services of qualified or professional workers in economic development.
Importance and significance of the study the findings of the study will throw more light on the importance of accountants in the economic development of Nigeria and why it is good for every economy to have accountants in its management.
This study will be directed towards the following:
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It will enable the people to know the profitable economic decision
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It will help the economy in safe-guarding the assets of the establishment.
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With the knowledge of the role of Accountant in the economic development, it will minimize the source of the problem encountered in the Nigeria economy.
1.4 RESEARCH QUESTIONS
For the purpose of effective investigation on the sole of accountant in economic development of Nigeria the following research questions have been raised:-
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Does audit report still add credibility to today’s financial statements?
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Are the information provided by accountant still effective in business decision making today?
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Are the aliting information provided helpful to tax official in assessing the taxable income of organization?
1.5. SCOPE/DELIMITATIONS OF THE STUDY
The role of accountant in the economic development of Nigeria could have been very vest tedious as mostly research as mostly research work to undertake, but the topic has been limited to a particular area, Nigeria Bottling Company Onitsha, which made it researchable for the researcher.
Like every research work a bit of things posed as delimitations to the researcher. This work also can be limited to the basic concepts, theories, are principles and procedures employed by accountants in the performance of their duties so as to uplift the nations economy.
1.6 DEFINITION OF TERMS
ACCOUNTANTS:
This is a person trained and skilled to keep examine or inspect the financial accounts of organization.
DEVELOPMENT:
The act of improving the quality of life of people and sustained rise in the standard of living of the people overtime. It is also an act of bringing out the economic responsibilities of a nation or an economy.
ORGANIZATION:
An economic group of people deliberately created for the purpose of achieving some specific objectives and measuring economic performance.
TAX ASSESSMENT:
To determine the amount that is payable by tax payer through the tax assessment authority (TAA).
FINANCIAL STATEMENT:
A summary of figure facts showing the financial condition of a business which includes assets (what the business owns) liabilities (what the business owes) and the net worth of capital account (the owners equity in the business).
GROSS DOMESTIC PRODUCT:
It is the gross value of the national output produced by domestic factors of production or indigenous factors of production. We get the gross domestic products by subtracting all the domestic output produced by foreign factors and add the foreign output produced in the country by Nigeria factor.