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The Effectiveness And Uses Of Accounting Information For Decision Making In Public Sector Organization
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1.2 STATEMENT OF THE PROBLEM
The central concern of management is
decision. In making a sound decision the management needs some valuable
and accurate information from the accountant. The accountant is at the
services of the management by providing the management with the
necessary information which they need for decision making.
In recent times, it was observed that cases of mismanagement, fraud and irregularities prevail in the organization.
What
then is the role of accounting information in Bank of agriculture? Has
the role been affective? Does accounting information control fraud,
mismanagement and irregularities? Does accounting information ensure the
efficiency and effectiveness of management? This study is aimed at
providing answers the above questions.
1.3 OBJECTIVES OF THE STUDY
This
research is aimed at examining how effective and efficient management
apply accounting information in making business decision in public
sector organizations.
The main objectives of this study are;
1. To identify how accounting information controls
Fraud, mismanagement and irregularities.
2. To determine how useful and effective accounting information are to decision making in public sector organization.
3.
To determine the relationship between the neglect of accounting
information and decision making in public sector organizations.
1.4 RESEARCH QUESTION
The
purpose of the study is to highlight the use of accounting information
in Bank of agriculture and disclose the obstacles involved in the demand
and supply of information. This therefore propels the following
research question for this study:
1. How does accounting information control fraud, mismanagement and irregularities?
2. How useful and effective is accounting information to decision making in public sector organizations?
3. What are the effects of in availability of accounting information in public sector organizations?
1.5 RESEARCH HYPOTHESIS
The
null hypothesis is the one stated in a no difference form in effect of
one or more independent variables on the dependent variable and is
denoted as Ho. Alternative hypothesis is the one which predicts a
difference and indicate the expected direction of that difference and is
denoted as H1. The hypothesis to be tested in this study are as
follows:
Ho: Accounting information does not control fraud, mismanagement and irregularities.
H1: Accounting information controls fraud, mismanagement and irregularities.
Ho: Accounting information is not effective in decision making in public sector organizations.
H1: Accounting information is effective in decision making in public sector organizations.
Ho: There is no relationship between the neglect of accounting information and decision making in public sector organizations
H1: There is relationship between the neglect of accounting information and decision making in public sector organization.
1.6 SIGNIFICANCE OF THE STUDY
Accounting
information is very important in the life of any business. It is based
on this information that the management will be able to make wise
decisions. The accountants present the accounting information in such a
way as to assist management in policy and decision making in the day to
day operations of the company.
Based on the information produced, the
management will have the benefits on using it to plan and control their
current and future operations. Based on it also they will come up with
their management decision and information of long term plans. The
information also will help the management report historical information
to outsiders
The account manager, based on the management plan
(target/standards) will analyze the performance of the organization and
access whether the organization actually attained the standard set by
the management or not, if
there is any variance, the management
in charge of accounts will look into it to find out the causes of the
variance and the report to the management based on that report. The
management can make a wise decision that will take the cause of the
variance into consideration. The use of accounting information is so
important that the management of any organization cannot do without it.
Any
organization that does not makes use of accounting information for
their decision making is bound to be running into difficulties that lead
to a setback.
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