ABSTRACT

The study main objective is to examines accounting ethics and quality of financial reporting in Nigeria. The study is based on a survey of 300 stratified sampled professional accountant and 70 convenience sampled professional accountant out of 413 registered professional accountant’s population in Abia State. The study is anchored on stewardship theory for accounting and the decision usefulness theory of financial reporting. The study used multivariate regression technique in analysing data from the mean response of each respondent. The study found that, integrity has a positive significant effect on value relevance of financial reports while objectivity, professional competence, and confidentiality have positive insignificant effects on value relevance of financial reports. It further found that, objectivity has a positive significant effect on timeliness of financial reports while integrity, professional competence, and confidentiality have positive insignificant effects on timeliness of financial reports. Finally, it is found that, objectivity has a positive significant effect on reliability of financial reports while integrity, professional competence, and confidentiality have positive insignificant effects on reliability of financial reports. It is recommended that regulators should mandate comprehensive ethics training for accounting professionals at all levels to nurture a strong ethical foundation. Also, it is recommended that companies should provide enhanced disclosures on their ethical practices and policies, demonstrating their commitment to maintain high ethical standards which is capable of spurring value relevance of companies’ financial report. Also, there is need to strengthen regulations for independent auditing processes to ensure rigorous scrutiny of financial reports, minimizing the potential for manipulation thus entrenching reliability of financial reports. There is need to enhance disclosures regarding the ethical guidelines followed during financial reporting, enabling stakeholders to make informed decisions based on reliable financial reports.