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Accounting Information System as a Means of Enhancing Financial Management of Transport Company

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Description

– Accounting Information System as a Means of Enhancing Financial Management of Transport Company –

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Abstract

Accounting information system in a transport organization has been a great problem to the third world countries in general, which Nigeria as a country has its own share.

This research work, “Accounting information system in a transport organization, suggests ways of minimizing the effects of the problems of inefficient accounting information. It is believe that an improvement in this regards will enhance the performance of the corporation.

To enable the researcher find solution to the problem of this study, some questions were raised in the form of hypotheses, which were developed comprising the null and alternative hypotheses. The methods of data collection were primary and secondary data method.

The data collected were analyzed by use of simple percentages while chi-square was used to test the hypothesis formulated for validity.

Findings show that accounting information is an indispensible tool in the management of Nigeria Railway Corporation and the activities of unqualified and incompetent accounting officers are responsible for the performance of the accounts departments in Nigeria Railway Corporation.

Based on the findings, the researcher concludes that the accountant should put more efforts especially when computing the financial statement since accounts fraud result from ignorant of proper accounting procedures.

Since the financial statement are sources of document of accounting information, efforts should be made in generating more relevant, timely, effective and accurate accounting information necessary for prevention or detection of fraud.

Introduction

1.1 Background of the Study

The Nigerian Railway Corporation (NRC) has been in existence for years. It is regarded the largest transport corporation in Nigeria and has a high network operations.

The Nigerian railway corporation is One Hundred and Fourteen years (114) old and it runs a unilaterally designed track system of 1067mm charge gauge. Only 30km of its track distribution is in double track and that is within Lagos area.

Nigerian Railway Corporation actually commenced rail business activities with the construction of the first rail line from Lagos to Ibadan 193m between 1998 and 1901.

By 1964 when the construction of 640km Kano-Maiduguri rail line, then known as Bornu extension, was completed, the present core of the railway network hard been put in place.

Presently, the railway system is made up of 3’505 route kilometers and 4332 track kilometers. In addition to this is the 19km 1067mm gauge extension from Port-Harcourt to one deep sea port and the 277km standard gauge rail construction 10 of 1435mm from Ajaokuta to Warri.

Nigerian railway was transformed from its first and initial name. “Government Department of Railway” to Nigerian Railway Corporation in 1955 through the instrumentality of the statutory act of parliament which, apart from changing the name of the railway industry in Nigeria,

equally conferred on it absolute monopoly as the institution recognized by law to carry out railway services.

The general aim and object of the statutory act of parliament of 1955 for Nigerian railway is to recognize same as carrying out its function of effecting “carriage of passenger and goods in a manner that will offer full value for money, meet cost of operation.

Improve market share and quality of services, ensure safety of operation and maximum efficiency, meet social responsibility in a manner that will meet the requirements of rail after, trade, commerce, industry and general public”.

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