Information Technology Implications of IFRS Implementation in Nigeria: Challenges to Auditors

Daferighe Emmanuel Emekaponuzo; Ofonime Okon Jeremiah; Emah Joseph Alfred

doi:doi:10.11648/j.jim.20170601.14

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Information Technology Implications of IFRS Implementation in Nigeria: Challenges to Auditors

Daferighe Emmanuel Emekaponuzo, Ofonime Okon Jeremiah, Emah Joseph Alfred

Published in Journal of Investment and Management (Volume 6, Issue 1)

Received: 18 October 2016 Accepted: 4 November 2016 Published: 14 December 2016

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Abstract

The adoption of IFRS as the reporting standards in Nigeria has brought with it changes in the accounting systems. IT changes is one essential aspect of concern in the IFRS implementation especially considering its effects on audit practice. These issues defined the focus of this paper. The survey research design was adopted. Auditors in audit accounting firms in Anambra and Akwa Ibom states of Nigeria were the targeted respondents. 120 auditors were randomly selected using convenience and judgemental technique. Data were collected using a 5-point Likert scale questionnaire. The data were analysed using the descriptive statistic such as averages, weights and ranking. It was discovered that the technology changes as a result of IFRS implementation requires high IT expertise from auditors as they need to understand the up to date software. It was therefore recommended that auditors should take up the challenge of updating their knowledge and skills with regard to IFRS and information technology in order to brace up for the challenges ahead. Similarly, accountancy training institutions such as tertiary institutions and professional tuition homes should update their curriculum to be in tune with the demands of IFRS; IFRS training packs and software should be made affordable in Nigeria.

Published in	Journal of Investment and Management (Volume 6, Issue 1)
DOI	10.11648/j.jim.20170601.14
Page(s)	22-27
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2016. Published by Science Publishing Group

Keywords

Information Technology, IFRS, IFRS Implementation, Auditors

References

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[2]	Accounting Web (2008). Conversion to IFRS will challenge information systems and IT personnel.
[3]	Adetula, D. T., Owolabi, F. & Ifeoma, O. O. (2014). International Financial Reporting Standards (IFRS) for SMES adoption process in Nigeria. European Journal of Accounting, Auditing and Finance Research. 2(4), pp. 33-38, June 2014.
[4]	AICPA (2010). IFRS Primer for Audit Committees. Audit Committee Brief from the Audit Committee Effectiveness Centre. June 2010. http://www.ifrs.com/overview/board_audit/aud-com__jun-2010_1final.pdf.
[5]	Ayuba, A. (2012). A proposed rule - Roadmap for the adoption of International Financial Reporting Standards (IFRS) in Nigeria: A research based perspective on FGN, NASB & SEC. American Journal of Economics. June 2012, Special Issue: 41-45 DOI: 10.5923/j.economics.20120001.10.
[6]	Barile, J. (2011). IFRS Compass: IT Systems Implications.
[7]	Batra, K. (2015). Role of Internal Auditors in transition to IFRS. Chartered Club.
[8]	Delloitte (2008). Technology implications of IFRS adoption for U.S. Companies.
[9]	Delloitte (n.d) IFRS implementation services: Implications of an accelerating global trend.
[10]	Dulitz, L. (2009). IFRS: A preparer’s point of view. Journal of Accountancy. www.journalofaccountancy.com/issues/2009/apr/preparerspointofview.html.
[11]	ICAN Pack. Audit planning and control. Advanced Audit and Assurance. http://icanig.org/documents/aaa.pdf.
[12]	ISACA (2015). Top 10 technology challenges for IT audit professionals – New study from ISACA and Protiviti. PressRoom>NewsReleases. www.isaca.org/About-ISACA/Press-room/News-Releases/2015/Pages/Top-10-Technology-Challenges-for-IT-Audit-Professionals-New-Study-from-ISACA-and-Protiviti.aspx?utm_referrer=.
[13]	Khoury, S. (2009). Public, private or non-profit: How IFRS can add value to your Information Systems.
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[15]	Nyor, T. (2012). Challenges of converging to IFRS in Nigeria. International Journal of Business Information Technology. 2(2), June 2012
[16]	Odum, A. N. (2010). Essentials of Auditing and Investigations. Nimo: Rex Charles and Patrick Ltd, pp 259.
[17]	Okafor, C. & Ogiedu, K. O (2011). Potential effects of the adoption and implementation of International financial Accounting Standards (IFRS) in Nigeria. Journal of research in National Development. Vol 9(2). www.ajol.info/journals/jorind.
[18]	PwC (2012). Mapping the change: IFRS Implementation Guide. IFRS Readiness Series. www.pwc.com/usifrs.
[19]	Saidu, S. & Dauda, (2014). An assessment of compliance with IFRS framework at First-Time Adoption by the quoted Banks in Nigeria. Journal of Finance and Accounting, 2014, Vol. 2, No. 3, 64-73 Available online at http://pubs.sciepub.com/jfa/2/3/3 © Science and Education Publishing DOI:10.12691/jfa-2-3-3.
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APA Style

Daferighe Emmanuel Emekaponuzo, Ofonime Okon Jeremiah, Emah Joseph Alfred. (2016). Information Technology Implications of IFRS Implementation in Nigeria: Challenges to Auditors. Journal of Investment and Management, 6(1), 22-27. https://doi.org/10.11648/j.jim.20170601.14

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ACS Style

Daferighe Emmanuel Emekaponuzo; Ofonime Okon Jeremiah; Emah Joseph Alfred. Information Technology Implications of IFRS Implementation in Nigeria: Challenges to Auditors. J. Invest. Manag. 2016, 6(1), 22-27. doi: 10.11648/j.jim.20170601.14

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AMA Style

Daferighe Emmanuel Emekaponuzo, Ofonime Okon Jeremiah, Emah Joseph Alfred. Information Technology Implications of IFRS Implementation in Nigeria: Challenges to Auditors. J Invest Manag. 2016;6(1):22-27. doi: 10.11648/j.jim.20170601.14

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@article{10.11648/j.jim.20170601.14,
  author = {Daferighe Emmanuel Emekaponuzo and Ofonime Okon Jeremiah and Emah Joseph Alfred},
  title = {Information Technology Implications of IFRS Implementation in Nigeria: Challenges to Auditors},
  journal = {Journal of Investment and Management},
  volume = {6},
  number = {1},
  pages = {22-27},
  doi = {10.11648/j.jim.20170601.14},
  url = {https://doi.org/10.11648/j.jim.20170601.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20170601.14},
  abstract = {The adoption of IFRS as the reporting standards in Nigeria has brought with it changes in the accounting systems. IT changes is one essential aspect of concern in the IFRS implementation especially considering its effects on audit practice. These issues defined the focus of this paper. The survey research design was adopted. Auditors in audit accounting firms in Anambra and Akwa Ibom states of Nigeria were the targeted respondents. 120 auditors were randomly selected using convenience and judgemental technique. Data were collected using a 5-point Likert scale questionnaire. The data were analysed using the descriptive statistic such as averages, weights and ranking. It was discovered that the technology changes as a result of IFRS implementation requires high IT expertise from auditors as they need to understand the up to date software. It was therefore recommended that auditors should take up the challenge of updating their knowledge and skills with regard to IFRS and information technology in order to brace up for the challenges ahead. Similarly, accountancy training institutions such as tertiary institutions and professional tuition homes should update their curriculum to be in tune with the demands of IFRS; IFRS training packs and software should be made affordable in Nigeria.},
 year = {2016}
}

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TY - JOUR
T1 - Information Technology Implications of IFRS Implementation in Nigeria: Challenges to Auditors
AU - Daferighe Emmanuel Emekaponuzo
AU - Ofonime Okon Jeremiah
AU - Emah Joseph Alfred
Y1 - 2016/12/14
PY - 2016
N1 - https://doi.org/10.11648/j.jim.20170601.14
DO - 10.11648/j.jim.20170601.14
T2 - Journal of Investment and Management
JF - Journal of Investment and Management
JO - Journal of Investment and Management
SP - 22
EP - 27
PB - Science Publishing Group
SN - 2328-7721
UR - https://doi.org/10.11648/j.jim.20170601.14
AB - The adoption of IFRS as the reporting standards in Nigeria has brought with it changes in the accounting systems. IT changes is one essential aspect of concern in the IFRS implementation especially considering its effects on audit practice. These issues defined the focus of this paper. The survey research design was adopted. Auditors in audit accounting firms in Anambra and Akwa Ibom states of Nigeria were the targeted respondents. 120 auditors were randomly selected using convenience and judgemental technique. Data were collected using a 5-point Likert scale questionnaire. The data were analysed using the descriptive statistic such as averages, weights and ranking. It was discovered that the technology changes as a result of IFRS implementation requires high IT expertise from auditors as they need to understand the up to date software. It was therefore recommended that auditors should take up the challenge of updating their knowledge and skills with regard to IFRS and information technology in order to brace up for the challenges ahead. Similarly, accountancy training institutions such as tertiary institutions and professional tuition homes should update their curriculum to be in tune with the demands of IFRS; IFRS training packs and software should be made affordable in Nigeria.
VL - 6
IS - 1
ER -

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Author Information

Daferighe Emmanuel Emekaponuzo

Department of Accounting, University of Uyo, Uyo, Nigeria
Ofonime Okon Jeremiah

Department of Accounting, Nnamdi Aizikwe University, Awka, Nigeria
Emah Joseph Alfred

Department of Accounting, University of Uyo, Uyo, Nigeria

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Plain Text BibTeX RIS

APA Style

Daferighe Emmanuel Emekaponuzo, Ofonime Okon Jeremiah, Emah Joseph Alfred. (2016). Information Technology Implications of IFRS Implementation in Nigeria: Challenges to Auditors. Journal of Investment and Management, 6(1), 22-27. https://doi.org/10.11648/j.jim.20170601.14

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ACS Style

Daferighe Emmanuel Emekaponuzo; Ofonime Okon Jeremiah; Emah Joseph Alfred. Information Technology Implications of IFRS Implementation in Nigeria: Challenges to Auditors. J. Invest. Manag. 2016, 6(1), 22-27. doi: 10.11648/j.jim.20170601.14

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AMA Style

Daferighe Emmanuel Emekaponuzo, Ofonime Okon Jeremiah, Emah Joseph Alfred. Information Technology Implications of IFRS Implementation in Nigeria: Challenges to Auditors. J Invest Manag. 2016;6(1):22-27. doi: 10.11648/j.jim.20170601.14

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@article{10.11648/j.jim.20170601.14,
  author = {Daferighe Emmanuel Emekaponuzo and Ofonime Okon Jeremiah and Emah Joseph Alfred},
  title = {Information Technology Implications of IFRS Implementation in Nigeria: Challenges to Auditors},
  journal = {Journal of Investment and Management},
  volume = {6},
  number = {1},
  pages = {22-27},
  doi = {10.11648/j.jim.20170601.14},
  url = {https://doi.org/10.11648/j.jim.20170601.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20170601.14},
  abstract = {The adoption of IFRS as the reporting standards in Nigeria has brought with it changes in the accounting systems. IT changes is one essential aspect of concern in the IFRS implementation especially considering its effects on audit practice. These issues defined the focus of this paper. The survey research design was adopted. Auditors in audit accounting firms in Anambra and Akwa Ibom states of Nigeria were the targeted respondents. 120 auditors were randomly selected using convenience and judgemental technique. Data were collected using a 5-point Likert scale questionnaire. The data were analysed using the descriptive statistic such as averages, weights and ranking. It was discovered that the technology changes as a result of IFRS implementation requires high IT expertise from auditors as they need to understand the up to date software. It was therefore recommended that auditors should take up the challenge of updating their knowledge and skills with regard to IFRS and information technology in order to brace up for the challenges ahead. Similarly, accountancy training institutions such as tertiary institutions and professional tuition homes should update their curriculum to be in tune with the demands of IFRS; IFRS training packs and software should be made affordable in Nigeria.},
 year = {2016}
}

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