ENHANCING PUBLIC CONFIDENCE IN FINANCIAL REPORTING: THE ROLE OF FINANCIAL REPORTING COUNCIL OF NIGERIA (FRCN)

ABSTRACT

This study examined the role of FRCN in enhancing public confidence in financial reporting in Nigeria. The objective is to access the main factor that contribute to lack of public trust, investigate the role of FRCN, Data were primary sourced through the administration of one hundred and fifty-four(154) questionnaire out of which one hundred and twenty-one (121) were found usable for the empirical analysis. The descriptive (frequency, mean and percentage) and inferential statistics (regression analysis) were adopted for the study’s analysis. Specifically, the analysis revealed the following: based on individual significance of the various factors, lack of independence was the most influential factor; that the FRCN activities significantly promote high-quality financial reporting in Nigeria; that the FRCN activities have a significant effect on public trust in financial reports in Nigeria; and based on individual significance of the various strategies, enforcement of stricter penalties for businesses that fail to comply with financial reporting standards was perceived as the most effective strategy by the respondents. Therefore, it was concluded that FRCN activities is effective in two major ways-improving public trust in financial report and promoting high quality financial reports. Based on these findings, the following was recommended: actions need to be taken to ensure auditors are free from influences that could compromise their objectivity and professional scepticism; enhancement of procedures to ensure those in charge of financial reporting are held accountable for their actions; development of training and guidance to ensure consistent application of accounting standards across businesses; improvement of transparency in the preparation of financial reports and make them readily accessible to the public; and amongst others.