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Unethical Accounting Practice and Financial Reporting Quality: Evidence from Nigeria

Author

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  • Yinka M. Salaudeen
  • Jide Ibikunle
  • Emmanuel Ib Chima

Abstract

This study examined unethical accounting practice and financial reporting quality in Nigeria. Behaving ethically is an essential and expected trait for professional accountants. The society places high premium of trust and expectation from the professional accountants and auditors as such people need to have confidence in the financial reports being prepared/audited by them in making an informed decision. It’s imperative therefore, that the information being provided by accountants and auditors should be meaningfully efficient, reliable, and realistic and are unbiased. An explanatory case study approach was used for the study complemented by archival data, newspaper reports and regulatory report. One of the key issues in our findings is that extended audit tenure could impair auditor’s independence and ability to employ professional skepticism on matters at their disposal. Non adherence to the spirit and letter of corporate governance was also responsible for the corporate scandals. We recommend therefore that the composition of the board of Directors and audit committee members should be made up of people of proven integrity and corporate experience. Also the tenure of external auditors should have a terminal frame and not be too long to as to affect their ethical conduct.

Suggested Citation

  • Yinka M. Salaudeen & Jide Ibikunle & Emmanuel Ib Chima, 2015. "Unethical Accounting Practice and Financial Reporting Quality: Evidence from Nigeria," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 5(2), pages 143-150, April.
    • Handle: RePEc:hur:ijaraf:v:5:y:2015:i:2:p:143-150
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    References listed on IDEAS

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    Cited by:

    1. Odia Honesty Amenaghawon & Gbenga Ekundayo & Festus Odhigu & Mary Josiah, 2021. "Nexus Between Corporate Social Responsibility, Environmental Disclosure and Financial Reporting Quality Among Listed Firms in Nigeria," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 12(2), pages 93-105, April.
    2. Taibat A. Atoyebi & Murtala A. O. Mustafa & Moruf A. Mobolaji, 2018. "This study assessed the ethical sensitivity of Professional accountants in Nigeria with particular reference to members of The Institute of Chartered Accountants of Nigeria (ICAN) and the Association ," Business and Management Studies, Redfame publishing, vol. 4(1), pages 96-104, March.

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