Browsing by Author "Mesfin Workie Tegegne"

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    The Role of Ethical Practices in Accounting in enhancing Public Trust and Economic Stability: evidence from Addis Ababa
    (A.A.U, 2025-06-30) Mesfin Workie Tegegne; Kelifa Srmolo (PhD)
    Accounting ethics consists of moral values and professional guidelines that shape accountants' responsibilities. It ensures honesty, transparency, and fairness in financial reporting and decision-making, it strengthens trust among businesses, investors, and the public. Maintaining ethical standards in accounting also enhances investor confidence and contributes to overall economic stability. This study aims to examine ethical practices in accounting and their role in enhancing public trust and assessing their broader role in economic stability. Using a descriptive research methodology, information was gathered from selected accounting and auditing firms’ through surveys and interviews. A survey was conducted among 124 accounting professionals who work in accounting auditing firms’ analysing how do accountants perceive the role of ethics in financial reporting, how unethical accounting practices erode public trust and destabilizes economies and the role of regulatory frameworks in promoting ethical behaviour among accounting professionals. Findings indicated that, lack of ethical training leading to ethical gaps in awareness and compliance, ethical financial reporting is a key factor in raising stakeholder trust and enhancing corporate reputation. The study also notes regulatory oversight plays a role in maintaining financial integrity but enforcement and effectiveness need improvement. Lack of public awareness and continuous ethical accountability efforts contribute to compliance challenges. Many accountants experience ethical conflicts due to pressure from management and clients further emphasizing the necessity of clear ethical frameworks and governance structure. In conclusion, this comprehensive analysis offers organizations with strong ethical policies empower professionals to maintain transparency and integrity. Training and awareness programmes are essential in preventing unethical practices and strengthening ethical financial reporting overall. Ultimately, this strengthens trust among stakeholders, regulators, and the public reinforcing the long-term credibility and sustainability of both the institution and the overall economy.