Perceived Ethical Climate and Forensic Accounting Services: Evidence From the Nigerian Public Sector
Keywords:
Perceived ethical climate; forensic accounting services; fraud detection and prevention; Nigerian public sector
Abstract
It has been maintained that no matter the level of professional forensic accountants’ expertise, they would not achieve the goals of detecting and preventing fraud without the necessary supportive ethical climate. Therefore, this study investigated the effect of perceived ethical climate and the use of forensic accounting services for the detection and prevention of fraud in the Nigerian public sector. The study used data collected from the responses of 133 senior staff in the finance and accounts department of the six-area council in Abuja. The method of data analysis technique adopted for this study is multiple regression analysis with the aid of Statistical Package for Social Sciences (SPSS). The study found that perceived ethical climate (principle ethical climate and benevolence ethical climate) has a positive and significant effect on the application of forensic accounting services in the selected public sectors of Nigeria. The study concluded that one of the key elements influencing the use of forensic accounting services in the public sector is the perceived ethical climate. This study recommends that professional accountants should eschew the temptation to mislead and manipulate financial information, even while inaccuracies or differences of opinion regarding the applicability of forensic accounting services laws do exist.
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References
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Sabiu, M. S., Kura, K. M., Mei, T. S., Raihan Joarder, M. H., & Umrani, W. A. (2019). The mediating role of ethical climate in the relationship between performance appraisal and organizational performance. International Journal of Public Administration, 42(8), 642-653.
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Saygili, M., Özer, Ö., & Karakaya, P. Ö. (2020). Paternalistic leadership, ethical climate and performance in health staff. Hospital topics, 98(1), 26-35.
Sen, C., & Rathore, M. (2018). Relationship between perceived ethical climate and organizational commitment in it sector. International Journal of Education and Management Studies, 8(1), 11-15.
Shafer, W. E., Poon, M. C., & Tjosvold, D. (2013). An investigation of ethical climate in a Singaporean accounting firm. Accounting, Auditing & Accountability Journal, 26(2), 312-343.
Shah, S. I. U., & Abd Rahim, N. (2019). Effect of ethical climate on corporate financial performance in Pakistan: An application of confirmatory tetrad analysis (CTA-PLS) approach. Journal of Studies in Social Sciences and Humanities, 5(2), 53-67.
Straatmann, T., Kohnke, O., Hattrup, K., & Mueller, K. (2016). Assessing employees’ reactions to organizational change an integrative framework of change-specific and psychological factors. The Journal of Applied Behavioral Science, 52(3), 265–295.
Sule, S., Yusof, N. Z. M., & Bahador, K. M. K. (2019). Users’ perceptions on auditors’ responsibilities for fraud prevention, detection and audit expectation GAP in Nigeria. auditing, 5(2), 1-10.
Suleiman, N., & Ahmi, A. (2018). Mitigating corruption using forensic accounting services investigation techniques: the watchdog perspectives. Indian-Pacific Journal of Accounting and Finance, 2(1), 4-25.
Sulistyowati, L., & Supriyati, S. (2015). The effect of experience, competence, independence, and professionalism of auditors on fraud detection. The Indonesian Accounting Review, 5(1), 95-110.
Turpen, R. A., & Witmer, P. R. (1997). Ethics in the search for accounting employment: student and recruiter perceptions. Accounting Horizons, 11(2), 65-80.
Victor, B., & Cullen, J. B. (1988). The organizational bases of ethical work climates. Administrative science quarterly, 33(1), 101-125.
Winata, S., Kusnawan, A., & Simbolon, S. (2020, March). Individual ethical decision-making of accounting lecturers between idealism and relativism in Tangerang. In 1st International Multidisciplinary Conference on Education, Technology, and Engineering (IMCETE 2019) (pp. 229-231). Atlantis Press.
Yến, H. H. (2020). Perception on ethical climate and individual job performance of bank employees. Journal of Economic Development, 24(4), 85-98.
Ajzen, I. (1991). The theory of planned behavior. Organizational behavior and human decision processes, 50(2), 179-211.
Buchan, H. F. (2005). Ethical decision making in the public accounting profession: An extension of Ajzen’s theory of planned behavior. Journal of Business Ethics, 61(2), 165-181.
Cheng, Y. C., Hung, F. C., & Hsu, H. M. (2021). The relationship between academic dishonesty, ethical attitude and ethical climate: The evidence from Taiwan. Sustainability, 13(21), 11615.
Cullen, J. B., Parboteeah, K. P., & Victor, B. (2003). The effects of ethical climates on organizational commitment: A two-study analysis. Journal of Business Ethics, 46, 127–141.
Danilwan, Y., & Dirhamsyah, I. P. (2022). The impact of the human resource practices on the organizational performance: Does Ethical Climate Matter? Journal of Positive School Psychology, 6(3), 1-16.
Ezeanyim, E. E., & Ezeanolue, E. T. (2021). Business ethics and organizational performance in manufacturing firms in South-East, Nigeria. International Journal of Business & Law Research, 9(3), 1-14.
Ewa, U. E., Adesola, A. W., & Kankpang, K. (2019). Evaluating anti-graft agencies governance practices in Nigeria. International Business Research, 12(12), 1-50.
Farouk, S., & Jabeen, F. (2018). Ethical climate, corporate social responsibility and organizational performance: Evidence from the UAE public sector. Social Responsibility Journal, 14(4), 737-752
Ismail, S., & Yuhanis, N. (2018). Determinants of ethical work behaviour of Malaysian public sector auditors. Asia-Pacific Journal of Business Administration, 10(1), 21-34
Jimmieson, N. L., Peach, M., & White, K. M. (2008). Utilizing the theory of planned behavior to inform change management: An investigation of employee intentions to support organizational change. The Journal of Applied Behavioral Science, 44(2), 237–262.
Kranacher, M. J., & Riley, R. (2019). Forensic accounting services and fraud examination. John Wiley & Sons.
Lannai, D., & Muslim, M. (2021). Causality of fraud detection. Jurnal Akuntansi, 25(1), 19-33.
Lawal, S., Kurawa, J. M., Hamid, K. T., & Umar, U. H. (2021). Do behavioral, educational, and legal factors determine the applicability of forensic accounting services in the public sector? Journal of Research in Emerging Markets, 3(2), 27-43.
Oni, S (2022, April 28). Shareholders and issues of corporate frauds. The Guardian. Retrieved from https://guardian.ng/opinion/shareholders-and-issues-of-corporate-frauds/
Othman, R., Aris, N. A., Mardziyah, A., Zainan, N., & Amin, N. M. (2015). Fraud detection and prevention methods in the Malaysian public sector: Accountants’ and internal auditors’ perceptions. Procedia Economics and Finance, 28, 59-67.
Ramdhan, R. M., Kisahwan, D., Winarno, A., & Hermana, D. (2021). Ethical climate as foundation for internal corporate social responsibility and employee performance in Indonesian context during COVID-19 pandemic. Jurnal Manajemen dan Pemasaran Jasa, 14(2), 213-230.
Rogošić, A., & Perica, I. (2022). Affective professional commitment and accounting ethics principles: examining the mediating role of the code of ethics. Economic Research-Ekonomska Istraživanja, 1-19.
Sabiu, M. S., Kura, K. M., Mei, T. S., Raihan Joarder, M. H., & Umrani, W. A. (2019). The mediating role of ethical climate in the relationship between performance appraisal and organizational performance. International Journal of Public Administration, 42(8), 642-653.
Samimi, S., Badavar N.Y., & Mottaghi, A. A. (2022). The convergence of the expectations between auditors and the users of financial statements: A multidimensional grounded theory and structural equation modelling. Iranian Journal of Accounting, Auditing and Finance, 6(3), 29-54.
Saygili, M., Özer, Ö., & Karakaya, P. Ö. (2020). Paternalistic leadership, ethical climate and performance in health staff. Hospital topics, 98(1), 26-35.
Sen, C., & Rathore, M. (2018). Relationship between perceived ethical climate and organizational commitment in it sector. International Journal of Education and Management Studies, 8(1), 11-15.
Shafer, W. E., Poon, M. C., & Tjosvold, D. (2013). An investigation of ethical climate in a Singaporean accounting firm. Accounting, Auditing & Accountability Journal, 26(2), 312-343.
Shah, S. I. U., & Abd Rahim, N. (2019). Effect of ethical climate on corporate financial performance in Pakistan: An application of confirmatory tetrad analysis (CTA-PLS) approach. Journal of Studies in Social Sciences and Humanities, 5(2), 53-67.
Straatmann, T., Kohnke, O., Hattrup, K., & Mueller, K. (2016). Assessing employees’ reactions to organizational change an integrative framework of change-specific and psychological factors. The Journal of Applied Behavioral Science, 52(3), 265–295.
Sule, S., Yusof, N. Z. M., & Bahador, K. M. K. (2019). Users’ perceptions on auditors’ responsibilities for fraud prevention, detection and audit expectation GAP in Nigeria. auditing, 5(2), 1-10.
Suleiman, N., & Ahmi, A. (2018). Mitigating corruption using forensic accounting services investigation techniques: the watchdog perspectives. Indian-Pacific Journal of Accounting and Finance, 2(1), 4-25.
Sulistyowati, L., & Supriyati, S. (2015). The effect of experience, competence, independence, and professionalism of auditors on fraud detection. The Indonesian Accounting Review, 5(1), 95-110.
Turpen, R. A., & Witmer, P. R. (1997). Ethics in the search for accounting employment: student and recruiter perceptions. Accounting Horizons, 11(2), 65-80.
Victor, B., & Cullen, J. B. (1988). The organizational bases of ethical work climates. Administrative science quarterly, 33(1), 101-125.
Winata, S., Kusnawan, A., & Simbolon, S. (2020, March). Individual ethical decision-making of accounting lecturers between idealism and relativism in Tangerang. In 1st International Multidisciplinary Conference on Education, Technology, and Engineering (IMCETE 2019) (pp. 229-231). Atlantis Press.
Yến, H. H. (2020). Perception on ethical climate and individual job performance of bank employees. Journal of Economic Development, 24(4), 85-98.
Published
2023-02-08
How to Cite
Nnedu Stanley Chinonso, & Aggreh Meshack. (2023). Perceived Ethical Climate and Forensic Accounting Services: Evidence From the Nigerian Public Sector. Britain International of Humanities and Social Sciences (BIoHS) Journal, 5(1), 23-31. https://doi.org/10.33258/biohs.v5i1.841
Section
Articles
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