CHAPTER ONE
INTRODUCTION
According to (Hussy, 2014), accounting system is defined as “the system designed to record the accounting transactions and events of a business and account for them in a way that complies with its policies and procedures. The basic elements of the accounting system are concerned with collecting, recording, evaluation, and reporting transactions and events”. Accounting system has also been considered as an integral aspect of the internal control system of an entity which entails the recording, keeping, analyzing, summarizing, interpretation and communication of various financial transactions for the purpose of planning, control and decision making. All forms of business organization, regardless of their sizes and nature of operation, require functional and reliable accounting system (Gabriel, 2012) An accounting system is an orderly, efficient scheme for providing accurate financial information and controls. Regulatory requirements and internal administration policies are key considerations in the design of an effective accounting system. Thus accounting systems show the books, records, voucher, and files and related supporting data resulting from the application of the accounting process. It involves the design of documents and transactions flow through an organization. The uniqueness of small and medium scale businesses call for careful consideration in the design of accounting systems (Atijosan, 2013).