ETHICAL PRACTICES ANDFINANCIAL REPORTING QUALITY OF SELECTED DEPOSIT MONEY BANKS IN LAGOS STATE, NIGERIA

Abstract

The absence of accounting ethics has resulted in a drop in the quality of financial reporting, which is critical for investors and management. Accountants' code of ethics, which encompasses honesty, impartiality, competence, secrecy, and professional behavior, helps to reduce the probability of misleading financial reporting.

This study uses a descriptive survey research approach to assess the impact of ethical practices on the financial reporting quality of selected deposit money banks in Lagos state, Nigeria. The population consists of employees of five listed deposit money banks in Nigeria.

The result indicates that integrity, competence, objectivity, professional behavior and professional independence positively affect relevance. The result indicates that integrity, competence, objectivity, professional behavior and professional independence does not positively affect faithful representation. The result of the hypothesis one concluded that ethical practices have a significant effect on relevance. Hypothesis two concluded that ethical practices does not have a significant effect on faithful representation. Based on the findings, a few recommendations are offered on ethical practices and financial reporting quality;

Measure should be made by management to ensure that ethical practices are followed in order to improve the performance of their organizations and to increase performance levels, the management team for deposit money banks should concentrate more attention on ensuring that the structure for ethical practices as it relates to financial reporting possess the required qualities.