European Journal of Accounting, Finance and Investment

Accounting Ethics And Financial Reporting Quality Of Rivers State Ministries, Departments And Agencies (Mda’S).

Ogaluzor, Odinakachukwu Ifeanyichukwu

Rivers State University

Tigidam, Eegbara Government

River State University

Keywords: Accounting Ethics, Integrity, Objectivity, Relevance, Financial Reporting Quality, Faithful Representation.

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Abstract

Widespread corruption Instances among government agencies and the collapse of several business entities globally, due to unethical conducts by accounting professionals, have necessitated the need for adherence of strong accounting ethics by business organization as well as the government parastatals. In this study, we investigated the connection between ethical standards in accounting and the accuracy of financial reporting. The correlational research design was chosen for this study, and the stakeholders’ theory served as its theoretical foundation. Population of the study was Ministries, Departments, and Agencies located in Rivers State. In this study, accounting ethics was treated as the independent variable (proxies by integrity and objectivity. Relevance and faithful representation, on the other hand, were used to proxy financial reporting quality. The Researcher employed primary data which was analyzed with the Correlation tool: Pearson Product Moment. Results obtained indicate a significant positive relationship between accounting ethics proxies and financial reporting quality. As a result, the study concludes financial reporting is positively influenced by accounting ethics. In light of this, the research came to the following conclusions and made the following recommendations: i. accountants should maintain objectivity when reporting to ensure quality; ii. Accountants are expected to put on integrity in their dealings at all times; and iii. Objective and reliable information should be included in annual financial reports.