CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The accounting profession plays an important role in the society. Investors,

creditors, employers, and other sectors of the business community, as well as the

government and the general public rely largely on the accounting profession for

sound financial accounting and reporting, effective management of financial

resources and business and taxation advisory services. According to Osisioma

(2010), accountancy is a pivotal profession. In times of prosperity, it is needed to

help manage abundance and plenty; in times of adversity, it is needed to achieve a

frugal and optimal allocation of scare resources; and in times of stability, it is

needed to keep the economic ship of the state on an even keel. Accounting is a

profession that rests squarely on the need to exhibit a high sense of accountability

and stewardship. It has a vested interest in promoting its public image, and can

only remain in this advantageous position by continuing to provide the public with

these unique services at a level which demonstrates that the public confidence in

firmly founded. For this reason, every member of the profession is expected to

conduct himself in a manner consistent with his responsibilities to his client, other

members of the profession, and the public at large. Those moral rules that guide
the behavior of the accountant in discharging his responsibilities are called

accounting professional ethics. According to Smith (1999), professional ethics held

the professional to higher standard of conduct than do the laws regulating that

profession. This implies that although the accounting profession is regulated by

accounting principles, ethical standards are of paramount importance. Nwagboso

(2008) claimed that accounting professional ethics helps the accountant to

determine the propriety of his conduct in his professional relationship, it indicates

the kind of professional posture the accountant must maintain if he succeeds; it

gives clients a feeling of confident that the accountant desires to serve them well

by placing service above financial reward; it enables member bodies and

regulatory authorities to fulfill their responsibility by ensuring that the professional

accountant has the skills and competence expected of him by employers, client and

the public; and it ensures that public interest is protected and the credibility of the

profession is enhanced.

There are several ethics developed for the accounting profession. The International

Federation of Accountants—IFAC (2006) identified the following ethical

principles of the accounting profession—integrity, objectivity, professional

competence and due care, confidentiality, professional independence, professional

behaviour fidelity, technical standards and public interest. Others include

guidelines on professional fee, resolving conflict of interest, professional

engagement, accounting and taxation services, to responsibilities to other members

and non-members etc. Nigam (2008) posited that the behavior of professional

accountant in providing the necessary accounting, auditing and taxation services

impacts on the economic well-being of the country. The accounting professional

ethics are meant to uphold the accountants to a higher standard of conduct.

1.2 Statement of the Problem

Due to the complex nature of accounting, the accounting profession is

characterized by ethical standards which necessitate strict adherence to the ethics

of the profession. In the business world, professional accountants are not only

expected to maintain high standards, but they are also expected to help

organizations achieve ethical balance. Although the recognized professional

accounting bodies in Nigeria like the Institute of Chartered Accountants of Nigeria

(ICAN) and the Association of National Accountants of Nigeria (ANAN). These

bodies try as much as possible to ensure best practices in the accounting profession

through the enforcement of a professional code of conduct for its members, the

strict observance of such codes is still in doubt. The confidence bestowed on the

practicing accountants by the public is still in question. Members still breach the

rules to the extent that raises the question of whether the ethical guidelines

adequately cover all that is required to be covered, or whether the problem lies

with the procedure for implementing the code of the ethics in the accounting
profession. Hence, this study seeks to examine the ethical system in professional

accounting and factors responsible for the bridge of ethical standards in the

profession.

1.3 Objectives of the Study

The main objective of this study is to evaluate the effect of accounting professional

ethics on the performance of Nigerian accountants, a study of Osita Aguolu and Co

Chartered Accounting Firm. The specific objectives of the study are:

i. To investigate the degree of adoption of accounting ethics by professional

accountants in Osita Aguolu and Co Chartered Accounting Firm.

ii. To examine the factors influencing the adoption of accounting ethics by

professional accountants in Osita Aguolu and Co Chartered Accounting

Firm.

iii. To examine if the existing code of ethics in accounting is adequate for

professional accounting practice in Osita Aguolu and Co Chartered

Accounting Firm.

1.4 Research Questions

This study tends to provide answer to the following:

i. What is the degree of adoption of accounting ethics by professional

accountants in Osita Aguolu and Co Chartered Accounting Firm?

 ii. What are the factors influencing the adoption of accounting ethics by

professional accountants in Osita Aguolu and Co Chartered Accounting

Firm?

iii. Is the existing code of ethics in accounting adequate for professional

accounting practice in Osita Aguolu and Co Chartered Accounting Firm?

1.5 Significance of the Study

Firstly, it will inform stakeholders of various organizations on how to uphold their

stipulated ethical principles in order to avoid cases of business failures and

corporate scandals.

Secondly, it will propel accountants to adhere strictly to codes of accounting ethics

in order to have some elements of reliability in the financial reports prepared and

provided by them.

Thirdly, the study via its findings will assist stakeholders of organizations to make

vital investment, finance and dividend decisions in order to promote the overall

corporate performance of their organization.

Fourthly, it will instill the spirit of professionalism, truthfulness, honesty and

integrity amongst accountants as they will realize that involvement in fraudulent

practices tarnishes their personal and professional reputation, as well hamper on

the genuineness of financial information released by them. Lastly, this study will
act as a guide for students, researchers and academics that might be willing to

undertake further studies on the subject matter.

1.6 Scope of the Study

This study is being conducted to evaluate the effect of accounting professional

ethics on the performance of Nigerian accountants. The study therefore is focused

on Osita Aguolu and Co Chartered Accounting Firm.

1.7 Limitations of the Study

Financial Constraint: insufficient fund tends to impede the efficiency of the

researcher in sourcing for the relevant materials, literature or information and in the

process of data collection (internet, questionnaire and interview).

Time Constraint: The researcher will simultaneously engage in this study with

other academic work. This consequently will cut down on the time devoted for the

research work.

1.8 Definition of Terms

Ethics: This refers to a set of moral principles, especially ones relating or to or

affirming a specified group, field or form of conduct.

Accounting Ethics: This is primarily a field of applied ethics and is part of

business ethics and human ethics. Accounting ethics studies moral values and

judgments as they apply to accountancy.

Objectivity: Objectivity entails that financial report must be independent and

supported with unbiased evidence.

Financial Report: Financial report (or statements) is a formal record of the

financial activities and position of a business, person or other entity. Relevant

financial reports such as balance sheet, income and expenditure statement,

statement of retained earnings and cash flow statements, must be presented in a

structured manner which must be easily comprehensible to the end users.

Disclosure: Disclosure refers to the additional information attached to an

organization’s financial report, usually as explanation for activities which have

significantly influenced such organization’s financial results.

Integrity: Integrity implies that financial report must be accurate, reliable and

truthful.

Professional Independence: This refers to freedom of professional accountants

from control or influence of another party or stakeholder. It implies that

professional accountants must be given the free-hand to prepare financial reports

devoid of internal and external interference.

Competence: This refers to the quality of being adequately qualified to handle

assigned tasks and responsibilities.

CHAPTER TWO

LITERATURE REVIEW

2.1 Conceptual Framework

2.1.1 Ethics

According to Nwagboso (2008), ethics is concerned with norms, principles or

conducts of behavior and practices carried out by a group of people, community or

profession. A profession is a calling or a job that needs special education and

training. It is an obligation to act in a way to serve the interest of the public. This is

what makes a profession different from a vocation. For example, a motor mechanic

who encounters a break-down vehicle on the high way has no ethical obligation to

fix the vehicle. But a medical doctor that encounters an accident victim who is

unconscious and badly in need of immediate medical attention has an ethical

obligation to stop and render medical care to the victim.

Miner (2012) defined ethics as right or wrong actions that stems from the value

and expectation of society. Mintz and Morris (2007) notes that ethics are

acceptable standards of behavior that define how people ought to act (i.e.,

prescriptive), and not how people really act (i.e., descriptive).

Cole (2012) conceptualized that ethics is a set of moral principles or values used

by organization to steer the conduct of the organization itself and its employees in

all their business activities, both internal and external, and in relation to the outside

world. Ethics is interpreted to be a certain culture of society that includes a specific

form of values while in the scholarship researching. Thus, it is an ideology from

social context or codes of conduct. The interpretation of the meaning associated

with ethics varies greatly from society to society.

A professional accountant is expected to act in the best interest of the public, hence

the need for accounting professional ethics. Camerer (1996) posited that

professional ethics sets out the ideas and responsibility of the profession, provides

guidelines on acceptable conduct, improves the profile of the profession, protects

both clients and the professionals, improves quality and consistency, and motivates

and inspire the professionals.

2.1.2 Professional Ethics

According to International Federation of Accountants (2006) in its code of ethics

for professional accountants, a distinguishing mark of the accountancy profession

is its acceptance of the responsibility to act in the public interest. This code

establishes the fundamental principles of professional ethics for professional

accountants and provides a conceptual framework for applying those principles.

The conceptual framework provides guidance on fundamental ethical principles.

Professional accountants are required to apply this conceptual framework to

identify threats to compliance with the fundamental principles to evaluate their

significance and, if such threats are other than clearly insignificant, to apply

safeguards to eliminate them or reduce them to an acceptable level. This is done

such that compliance with the fundamental principles is not compromised.

Professional accountant is required to comply with the following fundamental

principles:

i) Integrity: The principle of integrity imposes an obligation on all Chartered

Accountants to be straightforward and honest in professional and business

relationships. Integrity also implies fair dealing and truthfulness.

ii) Objectivity: A professional accountant should not allow bias, conflict of

interest, or undue influence of others to override professional or business

judgments. The principle of objectivity imposes an obligation on Chartered

Accountants to be fair, intellectually honest, and free of conflicts of interest.

Regardless of service or capacity, Chartered Accountants should protect the

integrity of their professional services and maintain objectivity in their judgment.

According to Izedonmi (2012), the principle of objectivity imposes a serious

obligation on all accountants whether in private practice or industry to avoid jobs,

assignments, relationships, and situations that are capable of compromising their

professional judgment due to either coercion, undue influence from people, conflict

of interest or even bias.

iii) Independence: Independence is an attitude of mind characterized by integrity

and objectivity in approach to audit assignment. Arowoshegbe, Uniamikogbo and

Atu (2017) stated that auditor’s independence means that when performing his

statutory duties, an auditor considers the interest of third parties, most of whom are

unknown to him who will be placing reliance on the accuracy of financial

statements prepared by him, to be of paramount importance.

According to the Institute of Chartered Accountants of Nigeria (ICAN) (2009),

Independence of an Auditor is of two types:

a. Independence of Mind: The state of mind that permits the expression of a

conclusion without being affected by influences that compromise professional

judgment, allowing an individual to act with integrity, and exercise objectivity and

professional skepticism.

b. Independence in Appearance: The avoidance of facts and circumstances are so

significant such that a reasonable and informed third party, having knowledge of

all relevant information, including safeguards applied, would reasonably conclude

that a firm or a member of the assurance team’s integrity, objectivity, or

professional skepticism had been compromised. As opined by Izedonmi (2012),

independence is a very crucial issue in enhancing the auditor’s objectivity in his

findings and opinions expressed in financial statements. Therefore, not only must

the auditor be independent in fact and in attitude of mind, he must also be

considered to be independent.

iv) Professional Competence and Due Care: A professional accountant has a

continuous duty of maintaining professional knowledge and skill at the level

required to ensure that a client or employer receives competent professional service

based on current developments in practice, legislation, and techniques. A

professional accountant should act diligently and in accordance with applicable

technical and professional standards when providing professional services.

v) Confidentiality: A professional accountant should respect the confidentiality of

information acquired as a result of professional and business relationships and

should not disclose any such information to third parties without proper and

specific authority unless there is a legal or professional right or duty to disclose.

Confidential information acquired as a result of professional and business

relationships should not be used for the personal advantage of the professional

accountant or third parties. Nevertheless, it is not always possible to conduct

evaluations without identifying information, such as names. ICAN (2009) stated

that the principle of confidentiality imposes an obligation on Chartered

Accountants to refrain from disclosing to persons outside the firm, or within the

firm or employing organization, confidential information acquired as a result of

professional and business relationships without proper and specific authority unless

there is a legal or professional right or duty to disclose such.

vi) Professional Behavior: A professional accountant should comply with relevant

laws and regulations and should avoid any action that discredits the profession.

The code specifically stated that professional accountants should take qualitative

and quantitative factors into account when considering the significance of a threat.

If the professional accountant cannot implement appropriate safeguards, the

professional accountant should decline or discontinue the specific professional

service involved or where necessary resign from the client (in the case of a

professional accountant in public practice) or the employing organization (in the

case of a professional accountant in business). If a professional accountant

inadvertently violate a provision of this code, such an inadvertent violation,

depending on the nature and significance of the matter, may not compromise

compliance with the fundamental principles provided. Once the violation is

discovered, the violation is corrected promptly and any necessary safeguards are

applied.
vii) Conformity to Technical Standard: According to Atu (2009), audit work

should be done with due professional skill, care, and caution in conformity with

approved auditing standards and statutory provisions and other regulatory and

operational guidelines such as SAS, IAS, AG, IAG and the likes.

viii) Advertisement for Professional Work: Accountants are not expected to

advertise their services and skill unfairly. No one should give undue prominence to

his signboard or advertise in any media unless: recruiting staff for his firm;

recruiting staff for his client; acting for client in buying and selling of properties;

opening a new office or changing the address of the practice; announcing the

appointment of members to important post; and placing congratulatory messages or

obituaries in the dailies in respect of members (Atu, n.d.).

ix) Retention of Working Papers: Working papers should be retained as follows:

 Taxation working papers 7 years;

 Files of chargeable assets 11 years;

 Files of members as trustee 7 years;

 Files for voluntary liquidation 5 years.

(j) Client’s Money: Client’s money should be paid in a separate bank account and

never to the accountant’s personal or firm account.

2.1.3 The Relevance of Ethical Codes in Professional Accounting

Smith (2014) views professional ethics as the element that holds the professional to

a higher standard of conduct than the laws that regulate that particular profession.

This infers that irrespective of the fact that the accounting profession is controlled

by accounting principles, ethical standards are of principal importance. According

to Nwagboso (2013), professional ethics in accounting aids the accountant

determine the respectability of his conduct while executing his professional duties,

it specifies the kind of professional stance which the accountant must maintain if

he must succeed. It instills a level of confidence in clients that the accountant is

willing to deliver excellent services by placing service above financial reward.

Professional ethical codes enable regulatory bodies to carry out their responsibility

by guaranteeing that the professional accountant has the skills and aptitude

expected of him by employers and clients, this ensures the protection of public

interest and enhances the credibility of the accounting profession.

2.1.4 Reasons for Unethical Behaviour of Professional Accountants

A review of literature suggested the following reasons for unethical behavior of

professional accountants:

Greediness and Self-Interest

Most professional accountants believe that the position of an accountant is the

position of wealth. In order to achieve their selfish interest, they abuse their

professional code of ethics, particularly when they have the opportunity to exercise
professional judgment (Frenchman, 2012). A familiar case in hand is the perennial

distress in the Nigerian banking industry. One major cause of this is the

questionable and often illegal wheeling and dealing not to mention outright fraud.

Some professional accountants not only audit their client’s books, but also help in

preparing such accounts and have also turned up in different advisory capabilities.

These will not only jeopardize the sacred independence quality, but will also

aggravate the already existing crises of confidence in the revered noble profession

of accounting.

Pressures from Employers/Clients

The objective of any business is the maximization of profit in order to increase the

company’s share price. But increased competition in the business world has placed

enormous pressures on management to attain the company’s objective. The

pressure to succeed therefore and remain at the top is responsible for the changes in

contemporary business practices whereby standards of behavior expected from

professionals are being abused. This has caused chief executives of companies to

pressurize professional accountants to manipulate accounting data through rule

bending and loophole seeking to paint a rosy picture of sinking organizations.

Since the management accountant earns his income from the company (the

employer), he has no choice other than to abuse the ethical concepts of his noble
profession. In the same vein, because the auditor earns his fees from his client, and

may want to keep and maintain his client, he equally yields to his client’s request.

The professional code of conduct stipulates that the professional accountant should

resign his appointment or engagement when faced with such ethical dilemma.

Donaldson (2012) identified pressure from employers and clients as the most

prevalent factor influencing the breach of accounting ethics by professional

accountants.

The Price of Ethical Behaviour

One may think that professional accountants will do the right thing, regardless of

the amount of personal sacrifice involved. But this is easier said than done.

Frenchman (2012) posits that in exhibiting ethical behavior, professional

accountants often come into conflict with their clients and or employers. This is

because what the client or employer wants the accountant to do may be against his

professional code of conduct.

Knowing fully that resignation is the price that goes with his conflict of ethical

conduct with his client and employer, the accountant has no choice than to abuse

ethical concepts and remain on his job. Professional accountants in developing

countries are scared of losing their present jobs because of ethical conduct since

they are not too sure of getting any new job elsewhere. But in most developed

countries where the rate of unemployment is very low, a professional accountant

can resign from an employment or engagement that conflict with his professional

code of conduct, and have a new job or engagement in a short while. The price of

losing his job makes professional accountants in developing countries to exhibit

unethical behavior.

Poor Societal Values

Every professional accountant comes from a particular society with diverse norms

and standards. Cheng (2013) is of the opinion that the kind of societal values

acquired by the accountant at early childhood have more influence on him than the

professional code of conduct. Therefore, professional accountants allow their

society values (good or bad) to interfere with their professional judgment in

financial reporting.

Lack of Complete Information

A professional accountant may suspect that activities in which he or she is asked to

participate are unethical, but had no complete information of the transactions. In

most situations, accountants have neither the responsibility nor the right to

investigate their employers or clients. If a further investigation of the facts is not

directly related to the accountant’s professional responsibilities, the accountant

simply may never have enough information to reach an informal decision as to

whether or not specific activities are “ethical” (Cheng, 2013).

Lack of Clearly Defined Ethical Conduct

No code of ethics can address every situation that might arise. Every “ethical

dilemma” borders upon the unique situation, having its own facts and

circumstances. In many situations, however the ethical course of action is not

readily apparent. Assume that a professional accountant is auditing the financial

statements of a company.

During this audit, the company was acquired by another company. The chief

executive of the acquired company is a brother to the accountant (auditors). Has

the accountant’s independence been impaired with respect to the company’s audit?

Must the auditor resign from the engagement? This case is intended to show that

ethical dilemmas do not always have clear-cut answers. This case hinges upon

personal judgment, including the closeness of the relationship “between the

accountant and the chief executive (brother)” and what impairs the “appearance” of

independence. Thus, even with all the facts in hand, experts are likely to disagree

on the answer to this case.

Codes of ethics, including the “official interpretations” typically do not address

such specific questions. Therefore, it’s often not possible to simply “lookup” the

solution to an ethical problem. In deciding when an ethical problem exists, and in

determining what constitutes ethical behaviour, the practitioner must often rely

primarily upon his or her own professional judgment. In assessing the payoff of

unethical behaviours of professional accountants, there are no concrete and

conclusive proofs that companies where accountants exhibit ethical behaviours are

more profitable. However, ICAN (2010) reports that in the long-run, ethical

conduct will have a positive effect on profitability, even though in certain

circumstances, particularly in the short-run, unethical practice yields greater

profits.

2.2 Theoretical Framework

Ethical theories explain how people act and behave; it states conditions which

show that an action is right, only if a specific condition occurs. These theories are

viewed from two different schools of thought; the first school of thought discusses

ethics of character. It states that, ethics of character concentrate on questions of

what sort of people we should be. The ethics of character focus on goodness of a

person’s character for determining the rightness of actions instead of on universal

laws (Jeffrey, 2012).

2.2.1 Utilitarian theory

Utilitarian theory suggests that an action or practice is right when compared with

any alternative action or practice, if it gives the highest balance of beneficial

consequences or creates the lowest balance of bad consequences. According to

Mill (1969), individuals should choose the best instead of the harmful. This implies

that one is expected to choose alternatives that derive more benefit to the majority

of people. Fisher and Lovell (2011) assert that, action is seen as right in proportion

to its promotion of happiness and wrong as they produce the reverse. Principle of

utility is an absolute principle which benefits the one and only supreme principle of

ethics (Githui, 2012). As part of the ethical conduct expected of an auditor, he can

choose an action that can generate greatest happiness to the society with least

harm.

2.2.2 Kant’s theory

Kant’s theory is derived from the concept that views a person as a moral agent,

Gomez (2012) opines that a sense of duty is codified in universal law principles. A

correct action is not always the one that maximises utility, rather, one has to follow

the moral principles, which are capable of becoming universal moral laws. This

informs that, the correct action taken by an auditor is the one that complies with the

required code of professional ethics for auditors. Kant’s action possesses moral

worth only when duty was performed for its own sake.

The theory asserts that, individual action may possess a moral worth only when he

does his duty for its own sake.

2.3 Empirical Review

A number studies were conducted on professional ethics which describe an

accountant as an ethical subject where all concentrate on good character to address

the legitimacy of the activities of accountants. Parker’s (1994) and Preston’s

(1995) studies are consistent with, Ana (2010), Mehul (2011), Jelic (2012),

Flayyef, Bakar, & Othman (2014), Symsuddin, & Habbe (2014), all of whom

studied the relevance of accounting ethics in ensuring the quality of audited

financial statements. The results of their works support that of Adeyemi &

Fagbemi (2011), Onuora & Okegbe (2015) and Enofe, Ukpebur & Ogbonna

(2015). Alqtaish, Bakar & Othman (2014) examined the ethical rules of auditing

and the impact of compliance with the ethical rules on auditing quality. These

results show that a high degree of commitment to professional ethics influences the

quality of audit and also the degree of influence on commitment to professional

ethics on the quality of audit was uneven.

Oraka & Okegbe (2015) examined the impact of professional accounting ethics on

quality assurance in audit by using 19 branches of money deposit banks in Enugu

metropolis. The results indicate that professional accounting ethics is effective in

ensuring quality audit. Anzeh & Abed (2015) investigated the extent of ethics

education for undergraduate students in accounting at both public and private

Jordanian Universities. The results show the pressing need for the introduction of

ethics in the accounting curriculum especially in auditing courses as a module of

study across Jordanian Universities. Akintunde, Amusat & Olumide (2016)

examined professionalism, professional accounting bodies, professional

accountants and professional ethical codes of conduct guiding accountants by

collecting data from 50 professional accountants within Oyo State civil service

commission using judgemental sampling techniques to obtain the sample. The

study concludes that there is positive impact on professional accounting bodies in

achieving accountability in managing the public funds in Nigeria. Minz, (2016)

examined the importance of virtue to accountants as well as accounting education.

He stresses the relevance of virtue to accounting students in California, USA. In

similar vein, Desal (2016) examined the need for ethical accounting regulation in

Navsari city by using 50 audit practitioners. The results of the study indicate that

ethical attitude has tremendous influence on ethical accounting regulation in

Navsari city.

Kusumawati & Syamsuddin (2018) examined the relationship between the

variables, professional ethics and audit quality by using auditors in audit board of

South Sulawesi, Indonesia. The result of their work shows a direct relationship

between professional ethics and audit quality and indirect relationship of auditor

quality on audit quality with professional scepticism as mediator. The relevance of

professional skepticism in producing quality audit result has been seen in large

audit firms as evidenced by the work of Knechel, Sofla & Svanstrom (2018) who

investigated the relationship between professional ethics, auditor compensation and

audit quality in Big 4 and non-Big 4 audit firms. The interpretation of their work
shows that Big 4 audit firms value professional skepticism which has a positive

relationship with auditor’s compensation, whereas non-Big 4 has not. The other

result reveals no association between professional skepticism and auditor report in

Big 4 audit firms but indicates a positive association in non-Big 4 audit firms.

2.4 Summary of Literature Review

This chapter of the research has been able to dwell on the review of related

literature. This was compartmentalized into the conceptual theoretical and

empirical literature. The conceptual literature was focused on elaborating on the

constructs or terms of the study. It basically focused on analyzing the various ideas

of authors on the concept of accounting professional ethics. Furthermore, the

theoretical literature focused on the various theories that make up the study.

Finally, the empirical literature focused on reviewing the past studies carried out on

the concept under study.

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Research Design

The research design used for this research work is descriptive design. A descriptive

design consist of a set of gathered data or information analyzed, summarized

and/or interpreted along certain line of thought for the pursuit of specific purpose

or study.

3.2 Area of Study

This research work covers the Osita Aguolu and Co Chartered Accounting Firm,

Enugu. Most of the data used in this work were gathered from the Osita Aguolu

and Co Chartered Accounting Firm, Enugu.

3.3 Population of the Study

Population means the whole body of items, objects, materials or people that fall

within a geographical location in which the researcher intends to investigate for his

or her study. That is the whole participant of the study. Therefore the target

population for this research includes the staff of Osita Aguolu and Co Chartered

Accounting Firm, Enugu. The population comprises of 25.

3.4 Sampling Method

Since the population is less than 50, the sample size for the study is 25.

3.5 Research instrument

The study is based on both primary and secondary data. The primary data involves

the use of questionnaires, oral interview, telephone conservation, observations etc.

The secondary data involves the use of textbooks, journals, magazines, newspaper

etc.

3.6 Validity and Reliability of Instrument

In order to ensure the validity of a research instrument, proper ensuring of

questionnaire and a conduct of a pretest of all the questions contained in the

questionnaire were carried out. The design of the questionnaire was also made for

respondents to tick their preferred choice from the options provided.

Reliability refers to the stability of the measurement used to study the relationships

between variables. The questions in the questionnaire were designed taking into

consideration the research questions on the subject. Thus the constructed

questionnaire was distributed by the researchers to the group of people different

from the pilot sample group but with the same characteristic, and after sometime

the copies of questionnaire were collected from the respondents and scored them.

Thus, the correct scoring was obtained again and again thereby proving the

reliability of the instrument.

3.7 Method of Data Collection

The research instrument for this study which was the questionnaire was self-

administered (person-to-person) by the researcher to 25 respondents. In effect, the

completed copies of the questionnaire were duly collected by the researcher. This

helped to avoid the loss of any copy of the questionnaire. Therefore, the total

number of questionnaire given out was the same retrieved. This method was

considered appropriate because it really enhanced the exercise, as it provided a

platform for the researcher to interact and provide further information about the

study to the respondents within the confines of research.

3.8 Method of Data Analysis

This research will make use of frequency table/percentages to analyze the

descriptive characteristics of the respondents.

CHAPTER FOUR
 DATA PRESENTATION AND ANALYSIS

4. 1 INTRODUCTION

This chapter presents the analysis of data derived through the questionnaire and

key informant interview administered on the respondents in the study area. The

analysis and interpretation were derived from the findings of the study. The data

analysis depicts the simple frequency and percentage of the respondents as well as

interpretation of the information gathered. A total of twenty (25) questionnaires

were administered to respondents of which twenty (20) were returned. For this

study a total of 20 was validated for the analysis.

4.1 DATA PRESENTATION AND ANALYSIS

Table 4.1: Responses as to the Sex of Respondents

Sex Responses Percentage (%)

Male 15 75

Female 5 25

Total 20 100

Source: Field Survey, 2021

 From table 4.1 above, 15 respondents representing 75% were male, while 5

respondents representing 25% were female. It’s obvious here that greater

percentage of the respondents were female.

Table 4.2: Responses as to Marital Status

Marital Status Responses Percentage (%)

Single 3 15

Married 17 85

Total 20 100

Source: Field Survey, 2021

From table 4.2 above, 3 respondents representing 15% were single, while 17

respondents representing 85% were married. Thus a greater percentage of the

respondents were single compared to the married ones.

The following are the research questions and responses of the respondents:

RESEARCH QUESTION 1: RESPONDENTS RESPONSES ON THE

DEGREE OF ADOPTION OF ACCOUNTING ETHICS BY

PROFESSIONAL ACCOUNTANTS IN OSITA AGUOLU AND CO

CHARTERED ACCOUNTING FIRM?

Table 4.3: What is the degree of adoption of accounting ethics by professional

accountants in Osita Aguolu and Co Chartered Accounting Firm?

Category Distribution Percentage (%)

Very high 11 55

High 8 40

Undecided - -

Very low - -

Low 1 5

Total 20 100

Source: Field Survey, 2021

From the table above, 11 respondents representing 55% said that the degree of

adoption of accounting ethics by professional accountants in Osita Aguolu and Co

Chartered Accounting Firm was very high, 8 respondents representing 40% said

that it was high, while 1 respondent representing 5% said that it was low.

RESEARCH QUESTION 2: RESPONDENTS RESPONSES ON THE

FACTORS INFLUENCING THE ADOPTION OF ACCOUNTING ETHICS

BY PROFESSIONAL ACCOUNTANTS IN OSITA AGUOLU AND CO

CHARTERED ACCOUNTING FIRM

Table 4.4: What are the factors influencing the adoption of accounting ethics

by professional accountants in Osita Aguolu and Co Chartered Accounting

Firm?

Category Distribution Percentage (%)

Poor Societal Values 10 50

Lack of Clearly Defined 5 25

Ethical Conduct

Lack of Competence in 5 25

complex environment

Total 20 100

Source: Field Survey, 2021

From the above responses, 10 respondents representing 50% believed that the

factor influencing the adoption of accounting ethics by professional accountants in

Osita Aguolu and Co Chartered Accounting Firm was poor societal values, 5

respondents representing 25% believed that it lack of clearly defined ethical

conduct, while 5 respondents representing 25% said that it was lack of competence

in complex environment.

RESEARCH QUESTION 3: RESPONDENTS RESPONSES ON WHETHER

THE EXISTING CODE OF ETHICS IN ACCOUNTING IS ADEQUATE

FOR PROFESSIONAL ACCOUNTING PRACTICE IN OSITA AGUOLU

AND CO CHARTERED ACCOUNTING FIRM

Table 4.5: Is the existing code of ethics in accounting adequate for

professional accounting practice in Osita Aguolu and Co Chartered

Accounting Firm?

Category Distribution Percentage (%)

Yes 13 65

No 7 35

Total 20 100

Source: Field Survey, 2021

From the above data, 13 respondents representing 65% believed that the existing

code of ethics in accounting is adequate for professional accounting practice in

Osita Aguolu and Co Chartered Accounting Firm, 7 respondents representing 35%

disagreed.

4.2 Discussion of Findings

The various research questions as regards this study have been examined and the

findings for research question one showed that a greater percentage of the

respondents (55%) were of the opinion that the degree of adoption of accounting
ethics by professional accountants in Osita Aguolu and Co Chartered Accounting

Firm was very high.

In the research question two as to the factors influencing the adoption of

accounting ethics by professional accountants in Osita Aguolu and Co Chartered

Accounting Firm, a greater percentage of the respondents (50%) were of the

opinion that that the factor influencing the adoption of accounting ethics by

professional accountants in Osita Aguolu and Co Chartered Accounting Firm was

poor societal values.

In the research question three on whether the existing code of ethics in

accounting adequate for professional accounting practice in Osita Aguolu and Co

Chartered Accounting Firm, a greater percentage (65%) of the respondents

believed that the existing code of ethics in accounting is adequate for professional

accounting practice in Osita Aguolu and Co Chartered Accounting Firm.

 CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND

RECOMMENDATIONS

5.1 Summary of Findings

From the responses gotten from the respondents, some interesting findings were

made.

Major findings revealed that:

1. There is a very high degree of adoption of accounting ethics by professional

accountants in Osita Aguolu and Co Chartered Accounting Firm

2. The factor influencing the adoption of accounting ethics by professional

accountants in Osita Aguolu and Co Chartered Accounting Firm was poor

societal value.

3. The existing code of ethics in accounting is adequate for professional

accounting practice in Osita Aguolu and Co Chartered Accounting Firm.

5.2 Conclusion

From the research carried out so far, the researcher was able to note that:

1. Professional accountants in Nigeria adopts accounting ethics to a very high

degree.
2. The factor that influence the adoption of accounting ethics by professional

accountants in Nigeria was mostly poor societal value.

3. The existing code of ethics in accounting is adequate for professional

accounting practice in Nigeria.

5.3 Recommendations

Based on the findings of this study, it was thus recommended that:

1. The accountant in practice needs to pay attention to good ethical conduct

and there is the need to adhere strictly to the ethical code of conduct.

2. Members need to sign a declaration of compliance with ethical codes

periodically. This may be once every year or two years.

3. The most breached offences need to continue to attract the most sanction.

4. Accounting ethics should be well established in Nigerian accounting

organizations
 REFERENCES

Atu, S. (2017). Ethical concept and professional judgment in corporate financial

reporting—Empirical evidence from Nigeria. The Business and
Management Review, 4(2): 78-90.

Camerer, D. (1996). Professional ethics. Accounting Society, 11(1): 141-157.

Cheng V. R. (2013). Why We Are Unethical in Accounting Practices? Finland:

University of Turku Press.

Cole, R. (2012). Corporate Strategy and the Search for Ethics. Englewood Cliffs,
New Jersey: Prentice-Hall.

Donaldson T. (1996). Issues in Moral Philosophy. New York: McGraw-Hills.

International Federation of Accountants (2010). Handbook of International

Auditing Assurance, and Ethics Pronouncement, IFAC.

Izedonmi, B. (2012). “Ethics of public financial management: The challenge for

corporate executives, public servants and the professional accountant”, in:
The ANAN-MCPD Lectures, Enugu, May 23.

Miner, L. (2012). Ethics and the profession-blowing the whistle on crime. African
Security Review, 2(1): 199-211.

Mintz, T. and Morris, R. (2007). Re-examining the accounting ethics. Journal of

Business Ethics, 18(2): 114-128.

Nigam R. (2008). The relationship between professional ethics and corporate

profitability. International Journal of Business Studies, 13(1): 217-229.

Nwagboso J. (2013). Professional Ethics, Skills and Standards. Bukuru, Jos:

Inspirations Media Konzult.
Smith F. A. (2014). Advanced Financial Reporting for Professionals. New York:
Irwin publishers.

Solomon R. C. (2012). Ethics and Excellence. New York: Oxford University Press.
 APPENDIX I

Department of Accountancy,
School of Financial Studies,
Institute of Management and
Technology (IMT),
Enugu.
Dear Respondent,

REQUEST FOR COMPLETION OF QUESTIONNAIRE

I am a final year student of the above named institution and I am currently

conducting a research on “the effect of accounting professional ethics on the
performance of Nigerian accountants, a study of Osita Aguolu and Co Chartered
Accounting Firm”.

This is in partial fulfillment of the requirement for the award of National Diploma
(ND) in Accounting.

The success of this research depends on your responses to the questions contained
in the questionnaire. I assure you that your responses will be treated confidentially
and will be used purely for academic purpose.

Yours faithfully,

Eze, Emmanuela Kosisochukwu

Researcher
 APPENDIX II

Section A: Demography of Respondents

Please tick in the boxes provided, the option that reflects your demographic

status

1. What is your status as an accountant?

a. Practicing Accountants ( )

b. Non-Practicing Accountants ( )

2. What is your Religion Status?

a. Muslim ( )

b. Christianity ( )

c. Other ( )

3. What is your Educational Qualification?

a. PhD ( )

b. Master’s Degree ( )

c. First Degree/HND ( )

d. Diploma/NCE ( )

e. Others ( )
Section B

4. What is the degree of adoption of accounting ethics by professional accountants

in Osita Aguolu and Co Chartered Accounting Firm?

a. Very High [ ]

b. High [ ]

c. Undecided [ ]

d. Very Low [ ]

e. Low [ ]

5. What are the factors influencing the adoption of accounting ethics by

professional accountants in Osita Aguolu and Co Chartered Accounting Firm?

a. Poor Societal Values [ ]

b. Lack of Clearly Defined Ethical Conduct [ ]

c. Lack of Competence in complex environment [ ]

6. Is the existing code of ethics in accounting adequate for professional accounting

practice in Osita Aguolu and Co Chartered Accounting Firm?

a. Yes [ ]

b. No [ ]