The Challenges of Providing Quality Financial Reporting in a Fraudulent and Corrupt Environment
AYODEJI LASUNKANMI ADENIYI
Yaba College of Technology
Department of Accountancy. Yaba-Lagos, Nigeria.
E-mail: aayoadeniyi@gmail.com
Abstract
The study investigates the challenges of providing quality financial reporting in a fraudulent and corrupt environment through assessment of integrity and credibility of the financial statements as well as disclosure of accounting information. Presence of fraud and its effects on the performance of business organizations are equally appraised. The paper explores challenges of providing quality financial reporting in Nigeria from the perspective of company accountants using structured questionnaire. The sample was randomly drawn from the population of 68 company accountants from bank, insurance, manufacturing and construction industries in Lagos, the analysis of variance (ANOVA) statistical method at 95% confidence level was employed to analyze the data collected. The study indicates that disclosure of accounting information does not preclude existence of fraud from the financial statements. Whereas fraud adversely affects the quality of financial reporting, and consequently makes prospective stakeholders not to accept or buy shares of the reporting company. However, the integrity and credibility of the financial statements preparers enhance on the quality of financial reporting. Thus, it is recommended that in addition to making adequate disclosures of accounting information, integrity and credibility of the financial statements preparers must be insisted upon in order to have a quality financial reporting so as to prevent financial bankruptcy in an average company in Nigeria.
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