ABSTRACT

The oil industry in Nigeria has grown tremendously since its discovery and major source of revenue and foreign exchange earning for the country. The study mainly to examined and identified the role of accounting system and reporting practice in the oil industry. The objectives of the study identified the accounting system used in the industry. Determined computerized system advantage over manual system, determined the efficiency effect of the accounting system adopted by the industry; ascertained the opinion of respondents in respect to experience staff and efficient accounting application, determined the efficient role of accounting system in the industry and also determined efficiency of accounting system in minimizing fraud. Also, the study stated some literature review which covers the accounting system and methods and also the rote of accounting system in the oil industry. It also dealt with some references from the accounting standard, for petroleum, SAS 14 Primary and secondary data were collected and 80 questionnaire where distributed to 40 senior and 40 junior and where collected. The three hypothesis in the opinion of respondents with respect to experience of accounting staff and efficient accounting system application. Also it indicated that efficient accounting system and reporting practice do play a significant role in the oil and gas industry. Observation that effective and efficient computerization accounting system does pay a major role in enhancing the development of the oil and gas industry. These result was gotten after applying the decision rule of accepting null hypothesis if tabular is greater than i-calculated. Accepting alternative if t-tabular is lesser than t-calculated. Recommendation therefore includes effective and efficient application of accounting system to control fraud and the training of employed staff/workers in accounting practice.