The Role of Business Ethics and Forensic Accounting Techniques in Promoting Financial Statements Integrity among Private and Public Companies in Nigeria

Abstract

Embedding a culture of sound and solid Business Ethics, laced with application of Forensic Accounting techniques by businesses has become a strategic imperative. These practices provide greater visibility and appeal of the entity to different audiences. A typical component of such visibility, in contemporary times, is the transparency and quality of the accounting practices which would resonate in the integrity of the Financial Statements. Financial statement fraud has become prevalent since about three decades ago. The goals and inclination for such untoward practices are legion. It is made feasible in an atmosphere replete with unethical business practices. Several entities, the perpetrators and their auditors have gown down, some to extinction. This study examined the role of Business Ethics and Forensic Accounting Techniques in promoting Financial Statements Integrity among public and private companies in Nigeria. Four Hypotheses were formulated, tested and analyzed using Multiple Regression Analysis. It was established that Business Ethics Ideals (BEI) and Forensic Accounting Techniques (FATs) of Document Examination and Review (DER) and Computer Assisted Review (CAR) have a significantly positive influence on Financial Statements Integrity. The study underlined the relevance of sound Business Ethics and application of Forensic Accounting Techniques in promoting and sustaining a culture of Financial Statements Integrity. The study recommended that Business ethics and Forensic Accounting Techniques should be embraced, embedded and deployed by organisations to promote financial statement integrity. Furthermore, entities should rejig their human capital hiring processes to emphasize engagement of persons with high ethical inclinations coupled with knowledge of forensic accounting.

Keywords: Business Ethics, Forensic Accounting, Financial Statement, Integrity

DOI: 10.7176/RJFA/14-20-04

Publication date: December 31^st 2023