Threats to Professional Ethics: Among Selected Authorized Accountants and Auditors In Ethiopia
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Date
2016-02
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Addis Ababa University
Abstract
The objective of the research was to identify the threats that impede adherence to professional
ethics among selected Authorized Accountants and Authorized Auditors in Ethiopia. The pillars of
ethical values rest on integrity, objectivity, professional competence and due care, confidentiality
and professional behavior. Observance of these pillars of ethics was evaluated in light of threats
and safeguards. The research approach employed for the study was mixed research augmented
with simple statistical analysis. Respondent Authorized Accountants and Authorized Auditors were
selected using snowballing technique. The data collected from the subjects of the study was
validated by triangulation. Bankers and Tax Auditors were identified as principal users of the
financial reports and thus used to validate the data. Key informants interview with persons having
close ties with the profession was conducted to enrich the data. The findings indicate that there are
lapses in the observance of professional ethics. The lapses in upholding ethical values are traced
to intimidation, work environment, legislative environment, integrity, familiarity, professional
competence and due care and self-interest. The recently promulgated legal provision for the
adoption of IFRS as accounting standard in Ethiopia is a milestone in the traverses of the
profession filling the gaps in the legal and professional environment. On the bright side, there are
high hopes and expectations from the newly established Accounting and Audit Board of Ethiopia
towards regulating and monitoring the profession. The migration to the new reporting and
regulatory system requires a concerted effort from the professionals. Rules by themselves are not
ends but means towards the desired goal. Principles rather than rules would make a difference
towards ethical professionals.
Key words: professional ethics, threats, to professional ethics, safeguards to professional ethics
Ethiopia
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Keywords
professional ethics; threats; to professional ethics; safeguards to professional ethics; Ethiopia