Abstract:
The main objective of the study was to evaluate the effects of accounting ethics on the
quality of financial reports of rural banks in Ghana - a case study of Nwabiagya Rural
Bank and Adansi Rural Bank Limited. The researcher used descriptive research
design for the study. Quantitative research approach was used. The population
includes branch managers, accountants, internal auditors and external auditors at
Nwabiagya Rural Bank and Adansi Rural Bank Limited. The purposive sampling
technique was used to select all the fifty (50) participants for the study. Questionnaire
was the main instrument used to gather primary data. The statistical package for
social scientist (SPSS version 20) was used to analyze the pre-coded questions. The
study results concluded that due to the diverse range of accounting services and
recent corporate collapses, attention has been drawn to ethical standards accepted
within the NRB and ARBL. Also, to combat the criticism and prevent fraudulent
accounting, the NRB and ARBL have developed regulations and remedies for
improved ethics among the accounting profession. The outcome of compliance with
IFRS on value relevance of accounting information ethics of the two rural banks led
to disclosures of forward- looking information in annual reports, and the use of fair
value as measurement basis. The high ethical standards promoted financial reporting
quality and improved adherence to high ethical standards that helps boost the integrity
of financial statements of the selected rural banks. The study recommends that the
accounting standards setting bodies in Ghana should support the effort to ensure
improved compliance with IFRS in the two selected rural banks as a matter of policy.
This should be done by organising compulsory regular training and re-training
programmes for management and staff of the two selected rural banks on importance
as well as need to observe all the mandatory disclosure requirements of IFRS.
Description:
A project report in the department of accounting studies education, Faculty of
Business Studies, submitted to the school of graduate studies, in partial fulfillment of
requirement for award of Master of Business Administration (Accounting) degree in
the University of Education, Winneba
JUNE, 2019