UNETHICAL ACCOUNTING PRACTICES AND FINANCIAL REPORTING QUALITY

Objective- This study focused on unethical accounting practices and their impact on financial reporting quality in Nigeria. It specifically examined the roles of institutions and regulatory bodies in addressing these issues. Geographically, our sample was drawn from Nigeria.The paper tested the hypothesis that there are no significant factors contributing to the persistence of unethical accounting practices among accountants and auditors, regulatory bodies do not face substantial challenges that hinder their ability to enforce ethical standards and address misconduct in financial reporting, and unethical accounting practices do not negatively impact the quality of financial reporting and diminish investor confidence in the Nigerian financial system. Methodology - For this study, the population comprised 154 staff of accounting departments and audit units of quoted companies in Nigeria. To choose the sampled companies in Nigeria,the Simple Random Sampling technique was adopted in this study. The research instrument used for this study is the questionnaire administered to accounting professionals, auditors, financial regulators, company executives, key officials from regulatory bodies and industry experts. The response to each of the question in Section B was based on the five-point likert scale and denoted as 1- Strongly Agree; 2- Agree; 3- Undecided; 4- Disagree; 5- Strongly Disagree. The data collected were analysed using both descriptive and inferential statistics. In addition, the hypotheses of the research have been tested using EViews student version 12 through ENTER for data analysis. Findings - The results revealed a significant negative relationship between variables. Research limits - Data used for this study need to be subjected to more statistical tests in order to establish a more robust validity and reliability. It is necessary to acquire further strengthened data and assume a variety of conditional situations. It is expected that subsequent studies can use larger samples and diversified by sector, a broader geographic base and a multi-faceted analysis. Practical implications- The study underscored the need for policymakers to prioritize ethical governance in the financial sector. Strengthening the regulatory framework and promoting ethical practices can enhance financial stability and investor confidence.