The Influence of Cultural Values on Accounting Practice in Nigeria

Abstract

Purpose:This study aims at examining culture’s influence on accounting practice in Nigeria. Design/Methodology:A survey of accountants in south-eastern Nigeria was carried out. A total number of 97 respondents comprising accountants and auditors in public and private practice were sampled. The Primary data were collected with the aid of a structured 5-point likert scale questionnaire, administered in two phases: first was the administration of the questionnaire on cultural values and secondly the administration of the questionnaire on varying specific issues of the study. Multiple Regression Techniques (MRT) was used in analyzing the primary data. Findings:The model results showed that cultural values had a significant predictive power in determining the choice of techniques and behaviour of accountants in the discharge of their duties. Secondly, that cultural values influence the enforcement and application of accounting standards in Nigeria. Thirdly, cultural values will significantly influence the way auditors’ carry out an audit assignment in Nigeria. Recommendations: To ensure a favourable IFRS/Global Reporting Standard adoption the IASB should consider the cultural values of varying countries rather than just the individualistic culture of developed nations. A breakdown of structural and organisational hierarchy to tackle the high power distance in Nigerian organisations. The inclusion of more countries representing varying national cultures in the IASB governing council.