ILLICIT FINANCIAL FLOW IN AN ILLICITS ENVIRONMENT: ETHICAL DILEMMA ISSUE FOR PUBLIC ACCOUNTANTS IN NIGERIA

Monica Gajere, Yohanna G. Jugu, Martins O. Kutus

Abstract


Illicit financial flows (IFFs) are increasingly recognised as one of the greatest contemporary global challenges. Current developments in the global environment have made the challenge posed by IFFs to be a very serious ethical issue. The supports that African countries are supposed to receive from external partners in the form of official development assistance, are
stagnating or even cancelled due to these domestic fiscal challenges. On the basis of this perceived problem, the study was set out to examine the relationship between illicit financial flows and the accounting profession, with the former serving as the independent variable and the latter as the dependent variable. The proxies for the independent variable being taxes, illegal activities and funds transfer, while the proxies for the dependent variable being ethical dilemma and ethical values in that order. To address these issues, the study adopted a qualitative and quantitative research design. Primary data were collected from 278 public practice accountants in Nigeria. These were statistically and parametrically analysed and used for testing the three formulated hypotheses. Major tools used for this purpose include, Correlation Analysis, Regression Analysis and the Analysis of Variance (ANOVA). The outcomes show that illicit financial flows Tax-related components Proceeds from illegal activities and the methods of transferring illicit funds, have significant relationship with ethical dilemmas and values in the accounting profession in Nigeria. On the basis of these, we recommended that licensed and practicing accounting firms, should endeavor to remain resolute in their quest to adhere strictly to the ethics of their profession, and government on the other hand should do everything possible to stamp out corruption in the country.

Keywords


Illicit Financial Flow, Accounting Profession and Ethical Dilemma

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International Journal of Management Science Research ISSN ISSN 2536 – 605X(Print)

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