Professional accountancy and ethics failure

Abstract

Ethical failures within the professional accountancy field constitute the core focus of this study, delving into the nuanced dynamics surrounding these lapses. As the bedrock of financial integrity and transparency, the accounting profession grapples with significant challenges related to ethical conduct. This study aims to rigorously examine the causes, consequences, and preventative measures associated with ethical failures in professional accountancy. The research objectives are multifaceted, seeking to identify the root causes of ethical failures and propose viable solutions. Additionally, the study explores the far-reaching impact of these failures on economic development and scrutinizes the pivotal role of ethical behavior in rebuilding public trust, fostering financial transparency, and ensuring accountability within the accounting profession. Adopting a cross-sectional research design with a sample size of 203 determined by the Yamane formula, the study utilizes random sampling techniques to collect data from accounting professionals in the sectors of public accounting, corporate accounting, and government accounting in Gomoa West. This diverse sample ensures a comprehensive exploration of ethical failures within different realms of the accounting profession. The collected data underwent meticulous coding and was analyzed using quantitative methods, specifically through the application of Descriptive Statistics. This approach facilitated a comprehensive examination of the dataset, providing key insights into the characteristics and patterns present in the data.The theoretical framework underpinning the research work draws on Deontological Ethics (Duty-Based Ethics) Theory, Consequentialism (Outcome-Based Ethics) Theory, and Virtue Ethics Theory. These ethical theories provide a robust foundation for understanding, analyzing, and evaluating the ethical dimensions of professional conduct within the accounting field. The findings of the study revealed that Pressure to Meet Financial Targets, Inadequate Regulatory Oversight, Conflicts of Interest, Complexity of Financial Transactions and Incentives for Unethical Behavior are the causes of ethical failures in the field of accountancy. Also from the findings, ethical failures consequences are Damage to Reputation, Legal Consequences, Loss of Client Trust, Financial Losses, Regulatory Sanctions, Career Implications, Financial Penalties and Reduced Employee trust. And strategies such as Enhanced Regulatory Oversight, Establishment of an Ethics Committee, Whistleblower Protection Mechanisms, Transparent Reporting Practices and Professional Development Programs are identified as effective measures to prevent ethical behavior failures in the profession of accountancy. In light of this, there is a need for stakeholders to establish partnership programs aimed at strengthening regulatory frameworks, ensuring effective oversight, and promoting adherence to ethical standards. NGOs, professional associations, and educational institutions should also collaborate to strengthen ethical training in accountancy, integrating it comprehensively into curricula and fostering a culture of openness. Governments also, in conjunction with professional entities, should enhance oversight mechanisms, introduce whistleblower protection measures, and encourage the establishment of internal ethics committees within accounting firms to proactively address and rectify ethical concerns.