THE EFFECTS OF UNETHICAL ACCOUNTING PRACTICE ON FINANCIAL REPORTING QUALITY

ABSTRACT

This research work was carried out with the objective of examining the effects of unethical accounting practice on financial accounting practice in Nigeria. The population of the study comprises of all level of accounting students in University of Benin. The sample size comprises of different level of accounting students as one hundred questionnaire was used to sample the respondents opinions. The study is based on primary survey. Using factor analysis and discriminant analysis, we find that the quality of financial report is affected by the situational factors surrounding the financial statement in banks. The study therefore recommends that regulatory authorities such as Securities and Exchange commission and Financial Reporting Council of Nigeria (FRCN) play a more active role in curbing unethical accounting practice and that addressing unethical accounting practice can contribute to the economic development and stability of Nigeria. Based on the findings of the study, it was concluded that in Nigeria, the impact of unethical accounting practices on financial reporting quality cannot be understated. It represents a grave threat not only to individual organizations but to the integrity and trustworthiness of financial markets as a whole. According to the findings and conclusions of the study, the following recommendations were made: that to combat unethical accounting practice, organizations should strengthen ethical culture and training. Leaders should implement and regularly review internal control systems to detect and prevent unethical practices, such as earnings manipulation or fraudulent transactions.