• Uchehara Chris Chigo Ph.D, DBA, FCNA, FFIA, FCIA, FCMA, ACPA, ACTI, Department of Accounting and Finance Crawford University, Ogun state, Nigeria
  • Ogbonna Precious Ijeoma,, MCIA, CPA, CIFC, ACMSP, Financial, Tax, forensic& Investigative Audit and management Consultants, EZYCHIGO Worldwide consulting company Limited, Ogun State, Nigeria



Professional Accounting Practices, Private Sector, Financial Failures In Recent Times, v, Accountants, Auditors, Banking Crisis, Professional Misconduct

Abstract [English]

This paper seeks to examine the challenges of professional accounting practices in Nigeria private sector with respect to financial failures in recent times. Survey technique was used and a total sample of one hundred and twenty questionnaires were sampled, purposive sampling technique was used to select one hundred and twenty (120) auditors, accountants, financial managers/directors and other management staff forms the bulk of the entire respondents. Descriptive statistical techniques such as frequency distribution and percentages response analysis were used to analyze data.  Results however, revealed that majority are of the opinion that there is yet a level of quality in the financial reports as pertaining to the private sector. It also indicates that the business environment does not permit accountants independence overall. It therefore established the fact that the private sector has not been up to the task of meeting the user’s expectation in their financial reports. It thus implies that accountants are party to inadequacies of financial statements in the private sector. It thus implies that professional accounting practices are yet relevant in the financial reports of the private sector. It thus implies that professional accounting practices are identified with certain deficiency that affects disclosure in corporate organizations. This confirmed the depth of corruption and inefficiency in fund management of the private sector. This indicates that the reason for the shortfall in financial reporting is non conformity with professional accounting practices. This indicates that the accountants also contribute to the increasing financial failures of the private sector. This implies that the business environment of the private sector have an influence on the accountants. This confirms the extent at which these qualities reflect in private sector financial reporting. Based on these findings, it was recommended that emphasis on conformity with professional accounting practices. Also, to combat unethical practices by accountants and professional firms, there is a need to educate company executives, policy-makers and the public about the human costs of anti-social and unprofessional practices, as they deprive ordinary Nigerian citizens of their human and social rights and the accounting profession in Nigeria must therefore continue to monitor development in the external and internal reporting environments through its audit, investigations and forensic accounting faculty and respond adequately.


Download data is not yet available.


Adeyemi S. B. (2004) ‘Minimisation of Financial crime: The Role of the Accountant’, Student Accountant Journal, 1: 7-13.

Adeyeye GB, Adeyemi SB, Otusanya OJ (2010). Ethical challenges of practicing accountants in Nigeria. Nigerian J. Manage. Stud., 10(2): (290-326).

Agbetunde, L. A. (2010). Principles & practice of personal income tax, 2nd ed. Ogun: Feetal Consulting Publishers, Ogun State, Nigeria.

Akindele, S. T. (2005) ‘A Critical Analysis of Corruption and its Problems in Nigeria’, Anthropologist, 7 (1): 7-18. DOI:

Albrecht WS, Sack RJ (2000). Accounting Education: Charting the course through a perilous future, Acc. Edu. Series No. 16, American Acc. Ass., Sarasota, FL.

Amundsen, I. (2006) ‘Political Corruption’, U4 Issue 6, CMI, Chr. Michels Institute.

Bakare, A.S. (2011). The impact of interest rates policy on the performances of manufacturing sub-sector in Nigeria. Prime Journal of Business Administration and Management 1(8).

Baker, R. W. (2005) Capitalism’s Achilles Hell: Dirty Money and How to Renew the Free Market System, New Jersey: John Wiley & Sons.

Bakre OM (2007). The unethical practices of accountants and auditors and the compromising stance of professional bodies in the corporate world: evidence from Nigeria. Accting. Forum, 31: 277-303.

Bakre, O. M. (2006) ‘Tax Avoidance, Capital Flight and Poverty in Nigeria: The Unpatriotic Collaboration of the Elite, the Multinational Corporations and the Accountants: Some Evidence’, Being Paper Presented at the 2006 University of Essex Tax Workshop, Essex Business School, University of Essex, UK, July.

Bakre, O. M. (2007) ‘Money Laundering and Trans-Organised Crime in Nigeria: Collaboration of Local and Foreign Capitalist Elites’, School of Accounting, Finance and Management Working Paper 07/03, University of Essex, UK.Accountancy Business and the Public Interest 2011

Bakre, O. M. (2007) ‘The Unethical Practices of Accountants and Auditors and the Compromising Stance of Professional Bodies in the Corporate World Evidence from Corporate Nigeria’, Accounting Forum, 31(3): 277-303. DOI:

Bakre, O. M. (2008a) ‘Looting by the Ruling Elite, Multinational Corporations and the Accountants: The Genesis of Indebtedness, Poverty and Underdevelopment in Nigeria’, paper presented at the 2008 University of Essex Tax Workshop, Essex Business School, University of Essex, UK, July.

Bakre, O. M. (2008b) ‘International Financial Corporation’s Neo-Liberal Privatisation Policy meets Privatisation drive of the new Post Military Nigerian Neo Colonial Capitalist Elites’, paper presented at the Centre for Global Accountability, Essex Business School, University of Essex, UK.

Bekele, E rk. W Zeleke, (2008). ‘Factors that Affect the Long-term Survival of Micro, Small and Medium Enterprises in Ethiopia,’ South African Journal of Economics, 76 (3), 1-33. DOI:

Chevrier, E. (2004) ‘The French Government’s Will to fight Organised Crime and Clean Up the Legal Professions: The Awkward Compromise between Professional Secrecy and Mandatory Reporting’, Crime, Law and Social Change, 42 (2-3): 189-200. DOI:

Christensen, J. (2006) ‘Follow the Money: How Tax Havens Facilitate Dirty Money Flows and Distort Global Markets’, Tax Justice Network, September, 2006.

Elliott, K. A. (1997) ‘Corruption as an International Policy Problem: Overview and Recommendations’, in Kimberly Ann Elliott (ed) Corruption and Global Economy, Institute for International Economics, pp. 175-233.

Essia, U. (2005). Stimulating private sector development in Nigeria: The CISP approach.Union Digest 9 1&2.

Fawehinmi, G. (2004) ‘Probing Corruption in Nigeria’, Nigeria World, Online. Available at: (accessed 22 December 2007).Accountancy Business and the Public Interest 2011

González de Aragόn, A. (2004) ‘The Benefits of INTOSAI to Supreme Audit Institutions’, INTOSAI: 50 Years (1953-2003) – A Special Publication of the International Organisation of Supreme Audit Institutions’, 122-130 Online. Available at: 23 July 2008).

Grey, C. (1998) ‘On Being a Professional in a ‘Big Six’ Firm’, Accounting, Organisation and Society, 23 (5/6): 569-587. DOI:

Gruner, J. (1999) ‘Is it the Professional Duty of An Accountant to Expose Corruption’, The Nigerian Accountant, 32 (2): 37-38.

Gunz, H. P. and Gunz, S. P. (2006) ‘Professional Ethics in Formal Organisations’, in Royston Greenwood and Roy Suddaby (eds) Professional Service Firm: Research in the Sociology of Organisations, 24: 257-281. DOI:

Hanlon, G. (1994) The Commercialisation of Accountancy: Flexible Accumulation and the Transformation of Service Class, New York: St Martin’s Press.

Hanlon, G. (1996) ‘’Casino Capitalism’ and the Rise of the ‘Commercialised’ Services Class – An Examination of Accountants’, Critical Perspectives on Accounting, 7 (3): 339-363.

Hoa, Y. and Johnston, M. (2002) ‘Corruption and the Future of Economic Reform in China’, in Arnold, J. Heidenheimer and Michael Johnston (eds) Political Corruption: Concept and Contexts, New Jersey: Transaction Publisher, New Brunswick.

Ikubaje, J. (2005) ‘Nigeria: Anti-Corruption Initiatives and the Constitution. AfricaFiles, 2 (2). Online. Available at, (accessed 15 July 2008).

International Monetary Fund (2001) ‘Financial System Abuse, Financial Crime and Money Laundering’, Background Paper, Washington, DC: International Monetary Fund Online. Available at: (accessed 10 July 2008). DOI:

Iyoha, F. O. and Oyerinde, D. (2010) ‘Accounting Infrastructure and Accountability in the Management of Public Expenditure in Developing Countries: A Focus on Nigeria’, Critical Perspectives on Accounting, 21 (5): 361-373.Accountancy Business and the Public Interest 2011

Kaufmann, D. and Dininio, P. (2006) ‘Corruption: A Key Challenge for Development’, in R. Stapenhurst, N. Johnston and R. Pelizzo (eds) The Role of the Parliament in Curbing Corruption, World Bank Publication: 13-25.

Klitgaard, R. (2000) ‘Subverting Corruption’, Finance and Development, June, Online. Available at: (accessed 8 September 2008).

Lankhorst, F. and Nelen, H. (2004) ‘Professional Services and Organised Crime in the Netherlands’, Crime, Law and Social Change, 42: 163-188. DOI:

Leicht, K. T. and Fennell M. L. (1997) ‘The Changing Organisation Context of Professional Work’, Annual Review of Sociology, 23: 215-231. DOI:

Leicht, K. T. and Fennell M. L. (2001) Professional Work, A Sociological Approach, Oxford: Blackwell Publisher, UK.

Mauro, P. (1995) ‘Corruption and Growth’, Quarterly Journal of Economics, 110(3): 681-712. DOI:

Middleton, D. J. and Levi, M. (2004) ‘The Role of Solicitors in Facilitating ‘Organised Crime’: Situational Crime Opportunities and their Regulations’, Crime, Law and Social Change, 42 (2-3): 123-161. DOI:

Mishra, A., Wilson, C., & Williams, R. (2009). Factors affecting financial performance of new and beginning farmers. Agricultural Finance Review, 69(2), 160-179. DOI:

Mitchell, A. and Sikka, P. (2004) ‘Accountability of the Accountancy Bodies: The Peculiarities of a British Accountancy Body’, British Accounting Review, 36 (4):395-414. DOI:

Mitchell, A. and Sikka, P. (2005) ‘Taming the Corporations’, A monograph by Association for Accountancy and Business Affairs, Basildon, UK.Accountancy Business and the Public Interest 2011

Mitchell, A., Sikka, P. and Willmott, H. (1998) ‘Sweeping It Under the Carpet: The Role of Accountancy Firms In Money Laundering’, Accounting, Organisation and Society, 23 (5/6): 589-607.

Mitchell, et al (1998) ‘Sweeping it Under the Carpet: The Role of Accountancy Firms in Money Laundering’ Accounting Organisations and Society, 23 (5/6):589-607. DOI:

Mitchell, et al (2001) ‘Policing Knowledge by Invoking the Law: Critical Accounting and the Politics of Dissemination’, Critical Perspectives on Accounting, 12(5): 527-555. DOI:

Mitchell, et al., (2002) ‘No Accounting for Tax Havens’, A Monograph by Association for Accounting Business Affairs, Basildon, UK.

Morris, T. and Empson, L. (1998) ‘Organisation and Expertise: An Exploration of Knowledge-Based and Management Accounting and Consulting Firms’, Accounting, Organisations and Society, 23 (5/6): 609-624. DOI:

Neu, D., Friesen, C. and Everett, J. (2003) ‘The Changing Internal Market for Ethical Discourses in the Canadian CA Profession’, Accounting, Auditing and Accountability, (16 (1): 70-103. DOI:

Neutze, J. and Karatnycky, A. (2007) ‘Corruption, Democracy and Investment in Ukraine’, The Atlantic Council of the United States Policy Paper, Washington, DC.

Obayelu, A. E. (2007) ‘Effects of Corruption and Economic Reforms on Economic Growth and Development: Lessons from Nigeria’, paper prepared and submitted for 2007 African Economic Conference.

Okike, E. (1994) ‘Curious Auditing Regulations in Nigeria: A Case Study of Cultural/Political Influence on Auditing Practice’, The International Journal of Accounting, 2: 139-166.Accountancy Business and the Public Interest 2011

Okike, E. (2004) ‘Management of Crisis: The Response of the Auditing Profession in Nigeria to Challenge to its Legitimacy’, Accounting, Auditing and Accountability Journal, 17 (5): 705-730. DOI:

Osaghae, E. E. (1998) Crippled Giant; Nigeria since Independence, Indiana University Press.

Otusanya, O. J. (2010) An Investigation of Tax Evasion, Tax Avoidance and Corruption in Nigeria, Unpublished Doctoral Thesis, University of Essex, United Kingdom.

Otusanya, O. J. and Lauwo, S. (2010) ‘The Role of Auditors in Nigerian Banking Crisis’, Accountancy, Business and the Public Interest, 10: 159-204.

Oxfam (2000) ‘Tax Heaven: Releasing the Hidden Billions for Poverty Eradication’, Oxfam GB Policy Paper, Online, wedo/issues/debt-aid/tax-heaven.htm (accessed 25 November 2005).

Pak, S. J. (2006) ‘Estimates of Capital Movements from African Countries to the U.S. through Trade Mispricing’, a paper presented at the Workshop on Tax, Poverty and Finance for Development, Essex Business School, University of Essex, July.

Palan, R. (2003) The Offshore World: Sovereign Markets, Virtual Places and Nomad Millionaires, London: Cornell University Press.

Palan, R., Richard, M. and Chavagneux, C. (2010) Tax Havens: How Globalisation Really Works, London: Cornell University Press

Peel, M. (2006) ‘Nigeria-Related Financial Crime and its Link with Britain: An African Programme Report’, The Royal Institute of International Affairs, Online. Available at: (accessed 10 July 2008).

Pope, J. (2006) ‘Parliament and Anti-Corruption Legislation’, in R. Stapenhurst, N. Johnston and R. Pelizzo (eds) The Role of the Parliament in Curbing Corruption, World Bank Publication.

Saks, M. (1985) ‘Professions and the Public Interest: The Response of the Medical Profession to Acupuncture in Nineteenth and Twentieth Century Britain’, PhD Thesis: London School of Economics, University of London.

Schneider, F. and Enste, D. H., (2000) ‘Shadow Economies, Size, Causes and Consequences’, Journal of Economic Literature, 37: 77-114. DOI:

Sikka, P. (2001) ‘Regulation of Accounting and Power of Capital: Some Observations’, Critical Perspectives on Accounting, 12: 199-211. DOI:

Sikka, P. (2003) ‘The Role of Offshore Financial Centres in Globalization’, Accounting Forum, 27(4): 365-399. DOI:

Sikka, P. (2005) ‘Corporate Tax Avoidance and Global Economic Development’, A Seminar Paper presented at the International Trade and Law Institute, Online. Available at: (accessed 11 October 2006).

Sikka, P. (2008a) ‘Enterprise Culture and Accountancy Firms: The New Master of Universe’, Accounting, Auditing and Accountability Journal, 21(2): 268-295. DOI:

Sikka, P. (2008b) ‘Globalization and Its Discontents: Accounting Firms Buy Limited Liability Partnership Legislation in Jersey’, Accounting, Auditing and Accountability Journal, 21 (3): 398-426. DOI:

Sikka, P. (2009) ‘Commentary on Roy Suddaby, Yves Gendron and Helen Lam; The Organisational Context of Professionalism in Accounting’, Accounting, Organisation and Society, 34(3-4): 428-432. DOI:

Sikka, P. and Hampton, M. (2005) ‘Tax Avoidance and Global Development: An Introduction’, Accounting Forum, 29 (3): 245-248. DOI:

Sikka, P. and Willmott, H. (1995) ‘Illuminating the State-Profession Relationship: Accountants Acting as Department of Trade and Industry Investigators’, Critical Perspectives on Accounting, 6 (4): 341-369.Accountancy Business and the Public Interest 2011

Sikka, P. and Willmott, H. (1995) ‘The Power of Independence: Defending and Extending the Jurisdiction of Accounting in the UK, Accounting Organisation and Society, 20 (6): 547-581. DOI:

Sikka, P. And Willmott, H. (2010) ‘The Dark Side of Transfer Pricing its Role in Tax Avoidance and Wealth Retentiveness’, Critical Perspectives on Accounting, 21 (4): 342-356. DOI:

Spronken, T. (2001) Verdenking (diss. Universiteit Maastricht) Deventer: Gouda Quint.

Suddaby, R., Cooper, D. J. and Greenwood, R. (2007) ‘Transnational Regulation of Professional Services: Governance Dynamics of Field Level Organisational Change’, Accounting, Organisations and Society, 32: 333-362. DOI:

Suddaby, R., Gendron, Y. and Lam, H. (2009) ‘The Organisational Context of Professionalism in Accounting’, Accounting, Organisations and Society, 34(3-4): 409-427. DOI:

Tanzi, V. (2000) ‘Globalization, Technology Development, and the Work of Fiscal Termites’, IMF Working Paper 00/181 (Washington: International Monetary Fund. Tax Justice Network (2005) ‘Tax us if you can’, A TJN Briefing Paper, September, 2005.

The Guardian Newspaper – Several editions.

The News Newspaper – Several editions.

The Punch Newspaper – Several editions.

The Sun Newspaper – Several editions.

United Nations Office on Drugs and Crime (2005) ‘Economic and Financial crimes: Challenges to Sustainable Development’, The Eleventh United Nations Congress on Crime Prevention and Criminal Justice, Bangkok, Thailand, April, Online. Available at: 82108_E_5_pr_SFS.pdf (accessed 14 July 2008).




How to Cite