etiyon 6 (2020) e04271 Contents lists available at ScienceDicect Heliyon Journal homepage: ww cel.comiheliyon Accountants perception of the factors influencing auditors’ ethical behaviour in Nigeria ams Adeleke Clement Adekoya“’’, Collins Sankay Oboh”, Obafemi Rufus Oyewumi” “fe Boaia vrs, Ade, gra nome of ager (UNIAG), age Moet ARTICLE INFO AasTRACT Ronee “This paper examines the perception of accountants (chartered and nor-chartered) ofthe personal factors nf hie! betavoas fencing auditors ethical behaviours in Nigeria. Data were obtained from 152 accountant (80 chartered and 72 Some ‘non-chartered) in Lagos State Nigeria through the use of well-structured quetonnate. The data elected were ase using sonparametrie tests (Wilooxon raksum test and Mana-Witny test) to check fo dflerences a behaviours. The resus showed that, except for auditor’ age, thee is a consegus in the perceptions of bath tomntng chartered and non-chartered accountants ofthe persona factors influencing autor’ ethical behaviours. While Bentng ‘here were signcant divergent views on whether age influences suditon ethical bebavous, fear af scion, Fepreeatle behaviours. The sy offers value to professional accounting bodes in tat it provides empirical explanations suid the pursuit of sustainable and relent ethical values emong accounting professionals. 1, Introduction (Odoli, 2019), Recent eases include the scandals of Toshiba in 2015 in Ethics is the bedrock of any responsible society and the basis for ‘meaningful and sustainable development (Obo) eal, 2020). Tee pro fessionaism and societal formation are exablished upon sound ethical values which are the foundation forall other standards of performance (Gurpen and Witmer, 1997), Globally, the continuing decline of ethical values in organizations and societies has heightened che concerns for ethics studies in societies (Pransparency International, 2016; Obols and Aiibolads, 2018; Obots, 2029). kn 2002, the appeal fr ethics in business ‘and accounting practices became amplified after the Enron and Andersen debacles, The outcome of the Enron and Andersen investigation only brought to bear what already was a deficiency in the very fibres of the business and professional communities (Low eta, 20085 Arfaou! eta, 2016; Obol, 2019; Obob eta, 2020). While the issue of unethical business and accounting practices has a Tong history (Lov etal, 2008; Koumbiads, 2014), reported cases only surfaced in the 1970s with the 1976 scandal of Lockheed Corporation in the United States and the 1980 scandal of Nugan Hand Bank in Australia, Others include the seandals of Northguard Acceptance Lid in 1980-82 in Canada and 2722 Best in 1986 in the United States (Wirphy, 201% * Corresponding autos, mal addres ko sc@abusd edu (AC. Adkoya) Innps,//dol.rg/10.1016/)blijon 2020 04271 Japan; Alberta Motor Association in 2016 in Canada; and Odebrecht in 2016 in Braail (Rusnel, 2016; Associated Press, 20175 Inagaki, 20175 (Ovo, 2018, 2015 Eawereusor etal, 2020), By implication, the recur ring global headlines of financial scandals and the roles played by ac fountants and auditors have brought a dent on the image of the accounting professions nobility (Delors, 2006; Sale, 20075 Msba| cal, 20163 Oboh ets, 2020). Also, stakeholders remain surprised as regards the moral decline and unethical posture of public aecountants (Wokakwa, 2015; Herber: etal, 2016; Oboh, 2019; Enwereuzor eta, 2020), In Nigeria, there have been several outeries over increasing incidents of corruption and unethical accounting pratiees (Ounleye, 2015 4: bolade and Obod, 2017; Obol, 2019; Oboh et al, 2020). Despite increased government legislation and the presence of governance and professional ethics codes, as well as common integration of accounting cethies conversations ia the academic curriculum, cases of unethical practices among accountants in both the public and private sectors sub sist (Bakre, 2007; Orusanya, 2010; Obch and Ajibolade, 2018; Oboh ral, 2020) There are eases of eolusion of accountants with companies management and directors to falsify companies’ accounts and the Received 19 duly 2019; Recelved in revised form 29 Februtry 2020; Acepted 19 June 2020 2405-8440 / 2020 The Asthor. Published by Fever Ld. This an open access artle under the OC BY.NC-ND licens (\//cwatvecommons.or/lcese/y. rend/6.0)‘compromising stance of external auditors. Cadbury Nigeria Ple. suffered ‘major financial seandal in 2005, while Dunlop Nigeria Pe. liquidated in 2009, Likewise, Oceanic and Intercontinental banks collapsed, leaving hundreds of sharcholders financially impaired (Sars, 2007; Ozunieys, 2015; Otusanya and Usdiale, 20143 Oboh and Ajibolade, 2018 Oboh, 2019) Confronced with these ethical challenges among accounting pro: fessionals, coupled with the consistent rankings of Afiean counties among most corrupt in the world (\jibolade and Oboh, 2017; Oboh, 2019) and the concerns expressed by different stakeholder groups for more business and professional ethics studies in Africa, this paper ex ‘amines accountants’ perceptions ofthe personal factors influencing the ‘ethical behaviours of auditors in Nigeria, a developing country with high corruption profile and weak government institutions. While auditing is major field in accounting and plays a significant role in lending cred bility to companies’ Financial statements (lever sine Fagen, 201), there is a dearth of ethics literature relating to auditing in developing ‘countries, especially in countries with high corruption profiles and weak, ‘governments (Oboh, 2019; Obob et .05), home taining (207 > .05), conscience (609 > 105), gender (115 > .05), fear of sanction (.404 > .08) and personal values (922 > 05) suggest no significant diference inthe perceptions of chartered and non-chartered accountants of the personal factors int fencing auditor’ ethical behaviours in Nigeria. That is, there is a ‘consensus perception among the stakeholders that these personal factors Iniluence auditors ethical behaviours. However, conceming age, there i no such agreement (.037 <.05), the test outcome shows that there is @ clear distinetion in the perception of the two groups of accountants considered in this study on auditor ethical behaviour. 5. Discussion “The results revealed that both chartered and non-charcered accoun- tants view fear of sanction, religion, upbringing, conscience, gender, and ‘personal values in relatively the same way as influencers ofan auditors ‘ethical behaviour, This consensus in opinion suggests that each of these factors inherently defines who an accountant in an audit firm tral s, and hence dicates how he behaves, particulary inthe discharge of his re sponstbilities. The fet that sanetions are in place for unethical behaviour ‘will greatly serve as a deterrent for auditors to behave is such a manner. ‘Also, religion with al the challenges that come with tay have its value in helng to inculcate good ethical behaviour in potential auditors. The same principle works with upbringing, which reflects how an individu was raised by parents or guardians, However the stakeholders perceived differently the extent to which age and gender influence auditors ethical ‘behaviours. This outcome confiems the mixed results in ethics literature ‘on the influence of gender and age on ethical behaviours. Whereas the study of Osunleye (2015) and Nathan (2015) reported a significant relationship between gender, age and ethical decision, the study of ‘Musa etal. (2016) reported a slight significant relationship between these demographic variables and ethical decision making. Although, ‘ohlberg (0873) argued that, as individuals grow older, they graduate eye 8 (2000 4271 fom one stage of morality to another inthe six tage level of morality, supposing the influence of age on ethical behaviours Hidhero, scholars have suggested that the foundation for true development in any economy is aid upon a reputable system of ethical principles. That is, the success of a society, organization oF profession cannot be disassociated from a siriet commitment to and an observance of sound ethical values. Hence, one major implication ofthis paper is that ‘twill draw the attention of professional accounting bodies in Nigeria to re-examine their stance on ethical istues relating tothe profession, Also, tention wil be dravin to the need for the integration of ethies courses Ino the undergraduate accounting curriculum to foster ethial values among accounting professionals in Nigeria. Accounting students (un dergraduates and postgraduates) should regularly be exposed to seminars and symposia on ethical issues in the profession to help them develop high personal and professional ethical values, The attention ofthe Gov- temument wil also be drawn to the fact thatthe environment creates an atmosphere for unethical accounting prctices to thrive. The government should look inward to devise measure on how to edge unethical practices among aceounting profesional. Stricter measures of sanctions should be putin place to debar unethiel accounting practices. 6. Conclusion and recommendations Given the findings above, this paper concludes that personal factors play a crucial role in determining how an auditor behaves in examining the books of cents and expressing an opinion thereon, Hence the fear of sanction, religion upbringing, conscience, gender, and personal values of Individuals working with audit frms go'a long way to determine how they will ct on the job and ultimately influence the position and per formance ofthe audi firm asa whole. It is therefore recommended that ‘much emphasis shouldbe placed on these personal factors in te lives of {he individuals that are to be employed or engaged by audit firms in the discharge oftheir duties to ther clients. This should be complemented with continuous training on edhls, patiularly as it has to do with the accounting profession and audit practice 6.1. Limitation an future research Like prior business ethics studies, there are some limitations to the ‘methods adopted in this paper. Fiesty, it simply examined the percep tions of the sampled respondents. Hence, the findings represent the opinions and perceptions ofthe sample drawn from the population and not their behaviour. However, iis reflection ofthe population since the samples were drawn randomly. Furthermore, an experimental study may be required to validate the accountants perception of the influence of ge ‘on auditors’ ethical behaviours, This paper lends its voice to call fr more research efforts in the area of business and profesional ethics in Aftica. Hitherto, there is still a dearth of empirical evidence on professional and business ethics studies In Afiea. Also, further studies could be condicted using more advance methodologies to provide an empirical explanation on the effect of conscience, upbringing and fear of God on the ethical decisions of ac ‘counting professionals, “Tale 3, Personal factors and auditors ethical behaviours erste Nace 2857 275 DT 260 238i 267 786 ieoren on sas 991 108 9 205 098 z 166 1.351 st 1s 2089 4 098 ‘gmp. ig led) 08 207 9 us. oor 08 om * Geouping variable: Professional satu *P < 05.AC Adaya tat Declarations Author contribution statement Adeleke Clement Adekoya: Conceived and designed the study; ‘Analyzed and interpreted the data; Wrote the paper. Collin Sankay Oboh: Conceived and designed the study; Analyzed ‘and interpreted the data; Contributed reagents, materials, analysis tols for data; Wrote the paper. Obafemi Rufus Oyewumi: Analyzed and interpreted the dats; Wrote the paper. 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