Ethics of Accounting Profession in Nigeria

Cletus O. Akenbor¹, Oghoghomeh Tennyson^2
(1. Department of Accounting/Finance, Federal University Otuoke, Bayelsa State, Nigeria;
2. Department of Accounting, Delta State University, Asaba, Nigeria)

Abstract: This study investigated ethics of accounting profession in Nigeria with a view to determine the degree of its adoption in professional practice and also to identify factors influencing its adoption by professional accountants in Nigeria. For this purpose, certain hypothetical claims were made, which were supported by a critical review of related literature. The population for the study consisted of one hundred and twenty-five (125) independent auditors and management accountants drawn from various accounting/auditing firms and business organizations in Port Harcourt, the Rivers State capital. Data, which were collected from respondents via the administration of a questionnaire were analyzed with frequency and percentages while the stated hypotheses were statistically tested with the Chi-square (X2) test and Spearman’s Rank correlation co-efficient. The findings from this study revealed a low adoption of accounting ethics in professional practice in Nigeria and the factors responsible for such include greediness and self-interest, pressures from employers and clients, price of ethical behavior, poor societal values, lack of complete information, lack of clearly defined ethical conduct, lack of competence in complex environment, effect of cultural change, self-protection activities, and self-deception and rationalization. Among these various factors, greediness and self-interest is the most prevalent while lack of clearly defined ethical conduct is the least influencing factor. Based on the above, it was recommended that strong enforcement mechanism such as a council to regulate the activities of professional accountants should be established and any professional accountant indulging in unethical practices should be denied of membership and the practicing license should be withdrawn. More so, there is need for total overhauling of our societal values.

Key words: ethics; accounting profession; societal values; adoption; professional accountants

JEL codes: M