The Challenges And Prospects Of Auditing In A Computer Environment (A Case Study Of Nigeria Mobile Telecommunication, Limited)

Project and Seminar Material for Accountancy / Accounting

The Challenges And Prospects Of Auditing In A Computer Environment (A Case Study Of Nigeria Mobile Telecommunication, Limited)


For any organization to function effectively and efficiently to achieve its desired goals and objectives, such an organization must have an efficient way of managing her daily operations, (Financial, Admin etc.). it is therefore a major corporate responsibility of the management to provide adequate measures which will facilitate the achievement of their set goals. This research work is aimed at determining the effect of audit in a computer environment. To buttress this point, Nigeria Mobile Telecommunication Limited (MTEL) Kaduna, is used as a case study. The auditing variables researched upon include financial and non – financial variables.

A sample size of 4 employees was drawn out of a research population of 37 members of staffs composed of managerial and non-managerial staff to answer the question in the question in the questionnaire administered to them. Also personal interview was conducted to supplement the information obtained from the questionnaires. However, in the course of the research, one hypothesis was used, “Computer Audit facilitate/enhance audit work,” the alternate hypothesis was accepted, while the null hypothesis was rejected, based on the data collected through the questionnaires administered and the proof of hypothesis. Based on the data collected and analyzed, the summarized fact were discovered that, the organization is aware of the positive effect of computer on the entire organization, yet computer audit in the account department are not still appreciated. Finally, I the researcher, recommend that the organization should not just know that computer audit facilitates/enhance audit work, but also adhere and apply it. When this is done it will enhance and facilitate accountability, gen1erally in the organization.

Table Of Content

Preliminary Page(s)

  • Cover
  • Title
  • Declaration
  • Approval
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of Content

Chapter One

1.0 Introduction

  • 1.1 Historical Background of Mtel
  • 1.2The statement of the problem
  • 1.3 Aims and Objectives of the Study
  • 1.4 Significance of the Study
  • 1.5 Hypothesis
  • 1.6 Scope and Limitation
  • 1.7 Definition of Term

Chapter Two:

2.0 Literature Review

  • 2.1 The Concepts of Auditing and Computer
  • 2.2 The Impart of Computers on Managers and in a Business Organization
  • 2.3 Objectives of internal Control in a Computerized Accounting System
  • 2.4 Weakness of the Tradition and Computer Method of Auditing
  • 2.5 The Use of auditing trial in a business organization
  • 2.6 The Problem and benefit (Prospects) of Computer Auditing

Chapter Three

3.0 Research Methodology

  • 3.1 Research Design
  • 3.2 Area of the Study
  • 3.3 Research Population and Sample size
  • 3.4 Instruments for Data Collection
  • 3.5 Validation/Reliability of Instrument
  • 3.6 Procedure for Data Collection
  • 3.7 Procedure for Data Analysis

Chapter Four

4.0 Data Presentation and Analysis

  • 4.1 Presentation of Data
  • 4.2 Data Analysis
  • 4.3 Test of Hypothesis
  • 4.4 Research Findings

Chapter Five

5.0 Summary, Conclusion and Recommendation

  • 5.1 Summary
  • 5.2 Conclusion
  • 5.3 Recommendation
  • Bibliography
  • Questionnaire
  • Area Office/CSC Organongram MTEL

Chapter One


Human being, either young, old, literate and illiterate are all product of their various environment i.e. the environment (internal or External) affects them either positively or negatively, even their work and inputs into anything, due to the rational and unpredictable nature of man, that makes them react to stimulants.

Before considering, the reaction towards auditing, auditing can be traced back to the ancient times where the receipts and payments of an estate or a manor were read to the lord or proprietor, or the head of a manor. It began more like a stewardship kind of dealings, where houses are entrusted into the hand of caretakers, who report to the landlord at the end of every month, etc. the origin of the word auditing is from a Latin word “Audire” (meaning to hear). At the beginning, the dealing was a kind of a sole – proprietorship business, since it involves a landlord and a steward/caretaker; but with industrial revolution, there was an increase in business transactions, which ushers in partnership, and other forms or types of business. Hence, financial transactions becomes much and the whole processes becomes complex and required more formal and improved accountability.

Considering the issue of audit reaction to the computer environment, it becomes proper to note that prior to the new era (computer) audit had already been in practice, though in a traditional/manual environment, as such, there are bound to be either challenges or prospects in the change to computer environment. This holds to the fact, that human beings react to changes in either positive or negative way, and they constitute the most important resources, in an organizational setup.

Over the years human beings had been used to a particular audit environments and it has become part of their routine work; so introduction of a new thing could and could not be a problem, irrespective of its future contribution, but as a result of human level of adoption to new things.

Hence, the starting point is how fast or slow, the organizations members of staff adopts to new policies, where this is in place, then the challenges and prospects can now be determined.

1.1 Historical Background of M-TEL

From M–TEL’s NEW IMAGE. A presentation to new members of the Mtel family October 2003. Mtel was established in 1996, to run the operations of NITEL’S Total Access Communication System (TACS).

It was merged with NITEL in April 2001 and demerge on 1st April, 2003. It has the vision of becoming, the number two mobiles operators in Nigeria in both consumer and business markets in five years, and have a reliable state of the art network infrastructure that meets the ever increasing demanding requirements of its customers and support a wide range of mobile voice and data service. Also, that its organization will have a “customer first” culture that is plainly visible by the respectful way it treats its customer and by the utmost care that is taken throughout the organization to maintain the promised service levels. And Mtel is aimed at achieving this vision through the telecommunication services it provides to the general public.

1.2 The Statement of the Problem

The audit problems with organization today can be dealt with from two broad perspective i.e. technological problem and historical problems.

This sense of the technical problem has to do with lack of technological know how. Since audit in a computer environment is a modern or contemporary way of audit, it entails a formal or an informal training on how to do this, which so many people (auditors) and their organization lacks, and it also involves extra spending on the purchases, maintenance, etc. of computer and its accessories, which organization try to avoid in their bids to maximize profit.

The historical aspect of it could be referred to as familiarity with the traditional way, which result from continuous practice, hence making it difficult for one to adopt to current or modern way of doing it, so easily.

Furthermore, the size of the organization, like my case study whose area offices here in Kaduna is small in size and in member of staff, also determine the use of modern audit (Computer) or the traditional (manual) way of doing it, i.e. if the size is big, computer audit will be embarked on to facilitate the whole audit process, while if it is small in size, the traditional way can be used, since the work load in little.

1.3 Aims and Objective of the Study

Many organization have seem insist on using the traditional way of audit, due to the ignorant of the positive and negative effects of computer audit on the audit department of an organization. As such, I the researcher is embarking on this study using Mtel, Kaduna, as a case study to bring out the possible effects and defects of computer audit in an accounting system of an organization, after which the effects will be compare as against the defects, hence knowing whether to use computer audit or not. And my objectives are:

  1. To ensure proper accountability in financial management, in our organization (Mtel)
  2. To ensure, efficiency and effectiveness in the actualization of the organizational target.
  3. To ensure an equitable distribution of service in proportion to the money paid.

1.4 Significance of the Study

The main reason or purpose of setting up any commercial organization is to maximize profit, but most often, this purpose is not being achieved as a result of mis – management of resources (financial and Material).

Hence, this research work will enlighten organizations and potential investors/entrepreneur on how to guard against mis – management of resources, by building a solid frame work for check and balances in an organizational set – up.

1.5 Hypothesis

Here, I, (Researcher) is using a tentative statement or assumption to guide my enquiries in the organization, to know the positive impact and effectiveness of computer audit to the organization. i.e.

  • Hi: Computer audit facilitates and enhances audit work.
  • Ho: Computer audit does not facilitates and enhances audit work.

These two assumptions above are the basis for which I am giving out my questionnaires.

1.6 Scope and Limitations of the Study

This research work is limited to the communication industries, precisely Nigerian Mobile Telecommunication Ltd (Mtel) Kaduna Area Office.

The time of submission of this project is short, that I, the researcher limit my work to the area office of Mtel Kaduna.

Also, due to the administrative secrecy on the part of the organization, because of her competitors, I was unable to get all valuable information that would have helped me in this research work, besides, time was not enough for me, since I had to combine both the class work and the research work.

Finally, accessibility to relevant textbooks also, constitutes a constraint on my work.

1.7 Definition of Terms


An electronic machine that can save information and do things with it according to a set of instructions called a programme.


It is an independent scrutiny and examination of organization books of account and financial statement, to states, ones opinion of, on the accuracy and completeness of the records prepared.


Something that tests strength, skill, or ability especially in a way that is interesting.


Chances of future success.


All the situation, event, people etc. that influence the way in which people live or work.


Following ideas and methods that have existed for a long – time without being interested in anything new or different.


Operated or done by hand or without the help of electricity, computers, etc.


A diagram that uses connecting lines and a set of conventional symbols to show the sequence of operations and the flow of data in a computer programme.


These are the physical components of a computer system, such as the chips, disk drives, monitors, etc.


This is piece of basic raw fact that needs to be processed to produce a meaningful information


This is a processed data into meaningful and useful terms

Input Device:

This is a medium/device through which raw data are being fed into the computer.

Output Device:

This is the device through which a processed data/information can be made available for human consumption.

Binary Code:

This is a coding system that uses alternative elements, 0 or 1 true or false, etc.


A binary, digit, this is the smallest unit of information that a computer can handle represented by a single 0 or 1.


This is a group of eight bits (representing, for example, a number or letter) that the computer operates on as a single unit.

Magnetic Media:

These are primarily storage media but are often used at an intermediate stage of data input. E.g. Magnetic Tape, Magnetic Disk. Etc.

Data Base:

A collection of information organized for rapid search and retrieval.

Disk Drive:

A device that rotates a magnetic storage disk and that can record data on the disk and read data from the disk.

Floppy Disk:

A thin flexible plastic that stores data in the form of magnetic patterns on it surface.


The hardware and software that enable a user to interact with a computer (called a user interface) or that enable two computer system to interact.

Logic Circuit:

An electronic switching circuit that performs a logic operation, its binary output is entirely determined by the combination of binary input.


A storage area in which a computer saves data and from which it retrieves data.


A single chip containing all the components found in a computer’s central processing unit.


A system of computers, terminals, and databases connected by communication lines.


A step by step series of instructions directing the computer to carry out a sequence of actions in order to perform an operation or to solve a problem.


Instructions or programme used by a computer to do its work; distinguished from hardware.

Random Access Memory (RAM):

A temporary computer memory system in which data can be stored and from which data can be quickly retrieved.

Read Only Memory (ROM):

A permanent computer memory system containing data and instruction that can be retrieved and used but never altered.

Chapter Five

Summary, Conclusion and Recommendation

5.0 Introduction

In this chapter, I the researcher will present a summary of my findings, with conclusion and some recommendations, which if properly adhered to or practiced, will enhance effectiveness in organizations (M-TEL Kaduna)

5.1 Summary

After much data has been gathered from this survey research, through interviews, questionnaires and documentary research, I, the researcher has summed every detail up as: –

The organization (M-TEL Kaduna) is aware of the effects of computer on the general day to day running of an organization, even though they do not deem it necessary for all the departments.

It is also noted that, computer audit is not appreciated by the organization, hence provision for computer were not made for, in the audit department. As a result, the office becomes boring and these staff goes to other office to link – up themselves to the global village.

Finally, the audit staff most times tends to be redundant, due to the size of the organizations area office here in Kaduna; and inadequate office responsibilities.

5.2 Conclusion

This research work has clearly shown the effect of computer audit on an organization (M-TEL) and the Likely Challenges in its Operations, but though in all, the advantages are more than the disadvantages, hence, can be embarked upon in organizations.

Furthermore, it has shown or established a fact that M-TEL, Kaduna, though being aware of the effect of computer audit on an organization, still didn’t deem it necessary to introduce it, into the organization.

Finally, it has been able to highlights that the general management efficiency and effectiveness can be enhanced and facilitated through computer audit.

5.3 Recommendations

With regards to the findings made above, it has become necessary for the researcher to make some recommendations, which if properly adhered to will alleviates the problems encountered in the audit of the organization (M-TEL).

The management of M-TEL, Kaduna, Should make sure, a separate office is created for the auditors, hence, allowing them an amount of independence and freedom to do their jobs without any interference and disturbance, besides, the auditors office is accountable to the headquarters, and not the immediate area office.

The management of M-TEL, Kaduna, should introduce computer audit into the system, as such furnishing the audit department/office with computer (s), which will inturn, make the office lively and not bored for the staff, since computer also, has the ability to entertain, etc and further facilitate their work.

Furthermore, being aware of the fact that all the employees of M-TEL, Kaduna are computer inclined, the management should arranged for auditing software, other than the software in the other departments, i.e. making only audit staff to be conversant with their audit software, and the audit software in use, should not be limited to one, but as much as are relevant, hence, safeguarding the data base financial information of the organization.

Finally, it is anticipated that the recommendations made here in, if implemented by the organization will help in giving her a new face lift and improving the general job performance and appraisal of Nigeria Mobile Telecommunication Limited (M-TEL) Kaduna, in particular and organizations in general.

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