Accounting Code of Ethics: Severity Analysis of Threats to Compliance of Auditors in Nigerian Business Environment

Sani Alfred Ilemona; Sunday Nwite

doi:doi:10.11648/j.jfa.20210901.13

| Peer-Reviewed

Accounting Code of Ethics: Severity Analysis of Threats to Compliance of Auditors in Nigerian Business Environment

Sani Alfred Ilemona, Sunday Nwite

Published in Journal of Finance and Accounting (Volume 9, Issue 1)

Received: 24 December 2020 Accepted: 16 January 2021 Published: 23 February 2021

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

The study examined the severity of the five (5) major threats to compliance with code of ethics by auditors in Nigerian business environment. These threats are Intimidation Threats, Self interest Threats, Advocacy Threats, Familiarity Threats and self review Threats. Using survey research design, data for the study were obtained primarily through questionnaire deigned to reflect the five (5) point Likert scale. The internal reliability of the constructs on each item of the threats was done using Cronbach’s Alpha coefficient and value above 0.70 obtained for all items of the construct. With random sampling, questionnaires were distributed to 360 auditorsfrom three (3) states of Nigeria namely Kogi, Benue, and plateau states in private practice and in employment of organizations out of which 210 of them were returned with 195 found usable. Responses obtained on the extent to which respondent agree or disagree with the nature and severity of items of the construct on each threat were analyzed empirically using simple percentage of non – parametric statistics and ranking of percentages. Findings indicated that among the threats faced by auditors in the course of their duty, Intimidation Threats (ITs) ranked first and the most severe of all categories of threats. Further correlation analysis revealed a strong, positive and significant relationship between the threats. The study recommended among others that auditors should have adequate and sufficient regard for their career and reputation striving constantly towards objectivity, honesty, and probity. These are traits or character of complete virtue that enable auditors to stand firm against all odds of threats to the profession.

Published in	Journal of Finance and Accounting (Volume 9, Issue 1)
DOI	10.11648/j.jfa.20210901.13
Page(s)	16-22
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Severity of Threats, Code of Ethics, Nigerian Business Environment, Intimidation Threats, Toward Objectivity

References

[1]	Abdulazeez, A. S., Issa, A & Yusuf, I. M (2019) Entrepreneurship and innovative capacity among agric business clusters in north-central, Nigeria. Al-hikmah Management Review 4 (1), 1-22
[2]	Ajagbe, T. S, Abimbola, I & Usman, T. B (2018) Effect of organization size and policy on account Receivable management of food and beverages firms in Nigeria. Al-hikmah Management Review 3 (1), 27-41.
[3]	Akadakpo, B. A & Enofe, A. O (2013) The impact of accounting ethics on the practice of accounting profession in Nigeria. IOSR Journal of Business and Management 12 (1), 45-51.
[4]	Amos, O. A, Emmanuel, U & Gina, A (2017) Accounting ethics and audit quality in Nigeria. Asian Journal of Economics Business and Accounting 4 (2), 1-15.
[5]	Bukola, A. A & Famous, I. O. I (2013) Ethical practices of professional accountant in Nigeria. Research, Journal of Finance and Accounting 4 (7), 233-241.
[6]	Bushi, K. M (2019) Professionalism and ethics of accounting in financial reporting: An overview of Nigerian scenario. European Scientific Journal 15 (25), 224-238.
[7]	Carlyton, D. T (2019) The code of ethics of professional accountants and auditors: a review of effectiveness. Journal of Scientific Management 1 (1), 13-26.
[8]	Dokubo, E. N (2018) The role of ethical guidelines in audit practice in Nigeria. Journal of Entrepreneurship and Business Finance 7 (2), 32-43.
[9]	Elegido, J. M (1996) Fundamentals of business ethics: A developing country Perspective, Lagos Spectrum books limited.
[10]	Ellias, K. Y & S: tein, F. S (2018) Adherence to ethics: A must for professional accountants and auditors. Journal of Economics and Commerce 2 (1), 41-53.
[11]	Ekofe, A. O, Utomwen, O. A & Danjuma, E. J (2019) Ethics and accounting practice in Nigeria. International Journal of Academic Research. 1 (1), 81-92
[12]	Ernest, A & Roberto, M (2010) Ethical standards and safeguards against threats to compliance. Journal of Business and Contemporary Studies 5 (1), 112-123.
[13]	Ezemah, E. E (2016) Ethics and corporate governance issues in Nigeria, Journal of Accounting, Businessand Finance 3 (4), 21 -32.
[14]	Fisher, J (2004) Social responsibility and ethics: Clarifying the concepts, Journal of Business Ethics 52 (4), 391-400.
[15]	Frank, C. K & Gayus, A. A (2018) Ethics of commerce and business. Journal of Management and Accounting. 1 (3), 39-48.
[16]	Gabriel, S. A, Sheila, A, Felix, O. B & Jeff, D. B (2017) Accounting ethics and professional accountant. The case of Ghana. International Journal of Applied Economics, Finance and Accounting 1 (1). 30-36.
[17]	Giriraj, K (2020) Ethics in accounting: An analysis of current financial factors and role of accountants. International Journal of Management 11 (2), 241-247.
[18]	Hadi, K (2014) The role of professional ethics in accounting and audit. Indian Journal of Fundamental and Applied Life Science 4 (1), 208-215.
[19]	Hamilton, A. E & Stanley, W. A (2018) Codes of ethics: A guide for professional accountants and auditors. Journal of Business and Economics 2 (3), 56 - 66.
[20]	Hemann, R. S & Karl, A (2008) Continuing professional development: A potent safeguard against threats to ethics of professions. Journal of Business and Contemporary Studies 2 (4), 121-133.
[21]	Honby, A. S (1999) Oxford, Advanced Dictionary 5^thed Oxford University Press.
[22]	Hossein, Y & Ali, B (2015) Ethics in accounting. International Journal of Accounting and Financial Reporting 5(1), 356-369.
[23]	Ifeanyi, M & Emmanuel, S. A (2016) professional ethics and the accounting profession: issues and challenges paper in proceedings of Nigerian Accountant Association Conference Keffi march 8^th– 9^th.
[24]	Japheth, T. G (2016) The role of ethics in corporate governance in Nigeria, Journal of Business and Economics 2(1), 78 – 89.
[25]	Lakija, I. D & Edu, M. L (2018). Threats to compliance with codes of ethics in audit profession. Journal of Contemporary Business and Finance 1(2), 83-94.
[26]	Leung, P & Cooper, B (1994) Ethics in accountancy: A class room experience, Accounting Education 3 (1), 19-35
[27]	Mohammed, K. M & Rasaq, M. M (2018) Organizational ethics: Compliance strategies. Journal of Accounting and Financial Management 7 (2), 81-93.
[28]	Morris, P. V & Zaat, O. H (2004) Ethics and hindrances to compliance. International Journal of Contemporary Management Studies 6 (2), 89-102.
[29]	Nasir, A. T & Isrii, G (2017) Ethical standards of professions: A sustainable strategy for compliance International Journal of Financial Studies 2 (2), 46-55.
[30]	Omre, U&khalifa, j (2010) Ethics and auditing practice in Nigeria. Journal of Entrepreneurship Finance and Accounting 2(1), 45-58.
[31]	Oraka, A. O & Okegbe, T. O (2015) The impact of professional accounting ethics in quality assurance in audit. International Journal of Academic Research in Business and Social Sciences 5(8), 64-78.
[32]	Oyebisi, M. I, Ayodotun, I & Abimbola, J (2018) Accounting ethics and performance of accounting firms in Lagos. Journal of Finance and Marketing 2 (2), 13-21.
[33]	Ranjheta, S, Abdul, B & Zubair, H (2017) Ethical behaviour of accounting students and intention to make an academic offense. International Journal of Education. Learning and Training 2 (1), 58-71.
[34]	Rasheed, N. H (2018 Tackling ethical issues in professionalism. Management Finance and Business Review 6 (2), 18-27.
[35]	Raymond, M. S & Lee, U. R (2013) the relevance of ethics in professional practice. Journal of Management Science and Economics 3 (2), 69-78.
[36]	Rotimi, G. I & Ajayi, B. A (2014) Compliance issues with ethical standards of professional bodies. Journal of Business Studies and Finance 4 (2), 14-25.
[37]	Tiprey, O. T & Harris, I. A (2019). Ethics and professional conduct: The guiding principles, Journal of Management and Accounting 3 (1), 101-113.
[38]	Waterhoff, B. C & Ezra, L. O (2007) Ethics of accounting and auditing profession: An analysis of hindrance to compliance. Journal of Finance and Management. 5 (3), 117-131.
[39]	Welloff, D. B & Zultz, O. O (2013). The role of ethics in health management services. Journal of Health and Psychology 1 (1), 111-121.

Cite This Article

Plain Text BibTeX RIS

APA Style

Sani Alfred Ilemona, Sunday Nwite. (2021). Accounting Code of Ethics: Severity Analysis of Threats to Compliance of Auditors in Nigerian Business Environment. Journal of Finance and Accounting, 9(1), 16-22. https://doi.org/10.11648/j.jfa.20210901.13

Copy | Download

ACS Style

Sani Alfred Ilemona; Sunday Nwite. Accounting Code of Ethics: Severity Analysis of Threats to Compliance of Auditors in Nigerian Business Environment. J. Finance Account. 2021, 9(1), 16-22. doi: 10.11648/j.jfa.20210901.13

Copy | Download

AMA Style

Sani Alfred Ilemona, Sunday Nwite. Accounting Code of Ethics: Severity Analysis of Threats to Compliance of Auditors in Nigerian Business Environment. J Finance Account. 2021;9(1):16-22. doi: 10.11648/j.jfa.20210901.13

Copy | Download

@article{10.11648/j.jfa.20210901.13,
  author = {Sani Alfred Ilemona and Sunday Nwite},
  title = {Accounting Code of Ethics: Severity Analysis of Threats to Compliance of Auditors in Nigerian Business Environment},
  journal = {Journal of Finance and Accounting},
  volume = {9},
  number = {1},
  pages = {16-22},
  doi = {10.11648/j.jfa.20210901.13},
  url = {https://doi.org/10.11648/j.jfa.20210901.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20210901.13},
  abstract = {The study examined the severity of the five (5) major threats to compliance with code of ethics by auditors in Nigerian business environment. These threats are Intimidation Threats, Self interest Threats, Advocacy Threats, Familiarity Threats and self review Threats. Using survey research design, data for the study were obtained primarily through questionnaire deigned to reflect the five (5) point Likert scale. The internal reliability of the constructs on each item of the threats was done using Cronbach’s Alpha coefficient and value above 0.70 obtained for all items of the construct. With random sampling, questionnaires were distributed to 360 auditorsfrom three (3) states of Nigeria namely Kogi, Benue, and plateau states in private practice and in employment of organizations out of which 210 of them were returned with 195 found usable. Responses obtained on the extent to which respondent agree or disagree with the nature and severity of items of the construct on each threat were analyzed empirically using simple percentage of non – parametric statistics and ranking of percentages. Findings indicated that among the threats faced by auditors in the course of their duty, Intimidation Threats (ITs) ranked first and the most severe of all categories of threats. Further correlation analysis revealed a strong, positive and significant relationship between the threats. The study recommended among others that auditors should have adequate and sufficient regard for their career and reputation striving constantly towards objectivity, honesty, and probity. These are traits or character of complete virtue that enable auditors to stand firm against all odds of threats to the profession.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - Accounting Code of Ethics: Severity Analysis of Threats to Compliance of Auditors in Nigerian Business Environment
AU  - Sani Alfred Ilemona
AU  - Sunday Nwite
Y1  - 2021/02/23
PY  - 2021
N1  - https://doi.org/10.11648/j.jfa.20210901.13
DO  - 10.11648/j.jfa.20210901.13
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 16
EP  - 22
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20210901.13
AB  - The study examined the severity of the five (5) major threats to compliance with code of ethics by auditors in Nigerian business environment. These threats are Intimidation Threats, Self interest Threats, Advocacy Threats, Familiarity Threats and self review Threats. Using survey research design, data for the study were obtained primarily through questionnaire deigned to reflect the five (5) point Likert scale. The internal reliability of the constructs on each item of the threats was done using Cronbach’s Alpha coefficient and value above 0.70 obtained for all items of the construct. With random sampling, questionnaires were distributed to 360 auditorsfrom three (3) states of Nigeria namely Kogi, Benue, and plateau states in private practice and in employment of organizations out of which 210 of them were returned with 195 found usable. Responses obtained on the extent to which respondent agree or disagree with the nature and severity of items of the construct on each threat were analyzed empirically using simple percentage of non – parametric statistics and ranking of percentages. Findings indicated that among the threats faced by auditors in the course of their duty, Intimidation Threats (ITs) ranked first and the most severe of all categories of threats. Further correlation analysis revealed a strong, positive and significant relationship between the threats. The study recommended among others that auditors should have adequate and sufficient regard for their career and reputation striving constantly towards objectivity, honesty, and probity. These are traits or character of complete virtue that enable auditors to stand firm against all odds of threats to the profession.
VL  - 9
IS  - 1
ER  -

Copy | Download

Author Information

Sani Alfred Ilemona

Department of Accounting and Business Administration, Federal University of Kashere, Gombe, Nigeria
Sunday Nwite

Department of Business Management, Ebonyi State University, Abakaliki, Nigeria

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Sani Alfred Ilemona, Sunday Nwite. (2021). Accounting Code of Ethics: Severity Analysis of Threats to Compliance of Auditors in Nigerian Business Environment. Journal of Finance and Accounting, 9(1), 16-22. https://doi.org/10.11648/j.jfa.20210901.13

Copy | Download

ACS Style

Sani Alfred Ilemona; Sunday Nwite. Accounting Code of Ethics: Severity Analysis of Threats to Compliance of Auditors in Nigerian Business Environment. J. Finance Account. 2021, 9(1), 16-22. doi: 10.11648/j.jfa.20210901.13

Copy | Download

AMA Style

Sani Alfred Ilemona, Sunday Nwite. Accounting Code of Ethics: Severity Analysis of Threats to Compliance of Auditors in Nigerian Business Environment. J Finance Account. 2021;9(1):16-22. doi: 10.11648/j.jfa.20210901.13

Copy | Download

@article{10.11648/j.jfa.20210901.13,
  author = {Sani Alfred Ilemona and Sunday Nwite},
  title = {Accounting Code of Ethics: Severity Analysis of Threats to Compliance of Auditors in Nigerian Business Environment},
  journal = {Journal of Finance and Accounting},
  volume = {9},
  number = {1},
  pages = {16-22},
  doi = {10.11648/j.jfa.20210901.13},
  url = {https://doi.org/10.11648/j.jfa.20210901.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20210901.13},
  abstract = {The study examined the severity of the five (5) major threats to compliance with code of ethics by auditors in Nigerian business environment. These threats are Intimidation Threats, Self interest Threats, Advocacy Threats, Familiarity Threats and self review Threats. Using survey research design, data for the study were obtained primarily through questionnaire deigned to reflect the five (5) point Likert scale. The internal reliability of the constructs on each item of the threats was done using Cronbach’s Alpha coefficient and value above 0.70 obtained for all items of the construct. With random sampling, questionnaires were distributed to 360 auditorsfrom three (3) states of Nigeria namely Kogi, Benue, and plateau states in private practice and in employment of organizations out of which 210 of them were returned with 195 found usable. Responses obtained on the extent to which respondent agree or disagree with the nature and severity of items of the construct on each threat were analyzed empirically using simple percentage of non – parametric statistics and ranking of percentages. Findings indicated that among the threats faced by auditors in the course of their duty, Intimidation Threats (ITs) ranked first and the most severe of all categories of threats. Further correlation analysis revealed a strong, positive and significant relationship between the threats. The study recommended among others that auditors should have adequate and sufficient regard for their career and reputation striving constantly towards objectivity, honesty, and probity. These are traits or character of complete virtue that enable auditors to stand firm against all odds of threats to the profession.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - Accounting Code of Ethics: Severity Analysis of Threats to Compliance of Auditors in Nigerian Business Environment
AU  - Sani Alfred Ilemona
AU  - Sunday Nwite
Y1  - 2021/02/23
PY  - 2021
N1  - https://doi.org/10.11648/j.jfa.20210901.13
DO  - 10.11648/j.jfa.20210901.13
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 16
EP  - 22
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20210901.13
AB  - The study examined the severity of the five (5) major threats to compliance with code of ethics by auditors in Nigerian business environment. These threats are Intimidation Threats, Self interest Threats, Advocacy Threats, Familiarity Threats and self review Threats. Using survey research design, data for the study were obtained primarily through questionnaire deigned to reflect the five (5) point Likert scale. The internal reliability of the constructs on each item of the threats was done using Cronbach’s Alpha coefficient and value above 0.70 obtained for all items of the construct. With random sampling, questionnaires were distributed to 360 auditorsfrom three (3) states of Nigeria namely Kogi, Benue, and plateau states in private practice and in employment of organizations out of which 210 of them were returned with 195 found usable. Responses obtained on the extent to which respondent agree or disagree with the nature and severity of items of the construct on each threat were analyzed empirically using simple percentage of non – parametric statistics and ranking of percentages. Findings indicated that among the threats faced by auditors in the course of their duty, Intimidation Threats (ITs) ranked first and the most severe of all categories of threats. Further correlation analysis revealed a strong, positive and significant relationship between the threats. The study recommended among others that auditors should have adequate and sufficient regard for their career and reputation striving constantly towards objectivity, honesty, and probity. These are traits or character of complete virtue that enable auditors to stand firm against all odds of threats to the profession.
VL  - 9
IS  - 1
ER  -

Copy | Download