The Role of Ethics in the Accounting Profession and Prevention of Accounting Scandals in Nigeria

Abstract

Ethics is a fundamental concept in the practice of any profession globally. No profession can be considered noble if its members are not guided by ethical principles and standards. This study adopts a historical approach to examine major accounting scandals that have undermined the integrity of the accounting profession worldwide, with particular focus on Nigeria, and explores the underlying causes of these scandals. Findings reveal that lack of ethics and conflicts of interest among professionals responsible for accurate financial reporting and auditing were key drivers of these crises. Such scandals have eroded public trust and confidence in the profession. The study concludes that for the accounting profession to regain its esteemed status among other noble professions, accountants and auditors must demonstrate strong ethical and moral responsibility in their conduct. Professional accounting bodies across continents and countries should implement robust ethical frameworks and enforce sanctions to regulate practitioners’ activities. Failure to do so risks diminishing the relevance of the profession in society. Consequently, the study recommends the creation of a centralized database for all practicing accountants in Nigeria, with strict sanctions against erring professionals to prevent re-engagement elsewhere. This measure will promote high ethical standards and accountability within the profession.

Keywords: Ethics, Accounting Profession.

DOI: 10.7176/RJFA/16-10-04

Publication date: December 30^th 2025