Professional Code Of Conduct And The Enhancement Of The Quality Of Financial Statements: Evidence Of The Nigerian Public Sector

Abstract

In Nigeria's public sector, there is a high amount of financial theft and corruption due to a lack of accountability and transparency in financial reporting. This necessitated the goal of this study, which was to examine if there was a nexus between professional ethics and improved financial reporting quality in the public sector. The descriptive research methodology was employed in the study, which included both primary and secondary data. The primary data came from a survey of auditors, financial managers, investors, and accountants using a five-point Likert scale structured questionnaire, while the secondary data came from journal papers, textbooks, and the internet. The targeted population and the sample size was 120respondents, determined through a purposive sampling technique. In general, the findings of this study from the regression analysis result, revealed that with the t-calculated of 2.939 > t-tabulated of 0.004 at a 5% level of significance, professional code of conduct has a significant positive impact on the quality of Financial statement. This implies that proper and strict adherence of professional codes of conduct by accountants in the public sectors in Nigeria will have a positive impact on financial reporting reliability, credibility, and integrity, as well as promote a uniform chart of financial reporting across Nigeria's three tiers of government. The study, therefore, recommended the need for auditors to continue to uphold the ethical standard for improved confidence on their reports by the relevant stakeholders.