Investigating Effects of Accounting Ethics on Quality of Financial Reporting of an Organization: Case of Selected Commercial Banks in South Sudan

Abstract

Abstract The purpose of this study was to investigate the effects of accounting ethics with regards to its financial reporting quality in South Sudan. Specifically, the study examined the influence of accountants’ competence, accountants’ independence, accountants’ objectivity and accountants’ integrity on quality of financial reports amongst South Sudanese commercial banks. Descriptive survey design was utilised to conduct the study. The target population in this study was 190 accountants distributed over the head offices of 8 commercial banks that were domiciled in South Sudan. Stratified sampling was employed incorporating each segment of the population sample. The study targeted 129 respondents to participate in the study where questionnaires were used as data collection tools. Study results established that competence of accountants (β = 0.456; p < 0.05), independence of accountants (β = 0.213; p < 0.05), objectivity of accountants (β = 0.253; p < 0.05) and integrity of accountants (β = 0.244; p < 0.05) all had positive and significant effect on financial reporting quality. The study recommends that management of the commercial banks should professionalize their accounting departments and enhance competence by ensuring that hiring is on merit and have on the job training opportunities. Moreover, the commercial banks should continually develop their accounting staff both internally and sponsoring them for educational seminars or workshops. Lastly, accountants should be given the authority and support required to enable them add value to the organisation by provide organisation wide risk management.