Financial Reporting and Ethical Compliance: The Role of Regulatory Bodies in Nigeria
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This study examined the role of regulatory bodies in relation to financial reporting and ethical compliance in Nigeria. It determined the impact of accounting ethics on quality of financial reporting. Furthermore, the study determined the level of compliance with ethical standards among professional accountants. The study employed field survey method. The targeted population was the top executives of big four accounting firms, Institute of Chartered Accountants of Nigeria (ICAN) and Financial Reporting Council of Nigeria (FRCN) totalling 120. Stratified sampling technique was used. The sample size used for this research was 100 respondents divided into fifty (50) respondents from each of the two strata. Primary data were collected. The study utilized structured questionnaire to generate the primary data for the study. Data were analyzed using descriptive and inferential statistics. The result showed that accounting ethics significantly impacted on the quality of financial reporting in Nigeria (t = 4.645, p < 0.01). Moreover, it was revealed that there was significant ethical compliance among professional accountants in Nigeria (Valid percentage = 63.3%). In conclusion, the null hypotheses were rejected at 1% level of significance and it was concluded that there is significant impact of accounting ethics on the quality of financial reporting. Also, there is significant level of compliance with ethical standards among professional accountants in Nigeria meaning that there is a need to improve on ethical awareness and training among professional accountants in Nigeria as well as accounting students in institution of higher learning in order to improve the quality of financial reporting in Nigeria.
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