IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 12, Issue 1 (Jul. - Aug. 2013), PP 45-51 www.iosrjournals.org www.iosrjournals.org 45 | Page Impact of Accounting Ethics on the Practice of Accounting Profession In Nigeria. 1 Akadakpo, Bukola A. (Mrs), 2 Enofe, Augustine O. 1 Department of Accounting, Faculty of Management Sciences, University of Benin, Benin City. Nigeria. Abstract: This study is an empirical investigation of the impact of ethical values on the practice of accounting profession in Nigeria. To achieve the purpose of this study, research questions were raised, hypotheses were formulated, and a review of related literature was made. The main objective of this study is to examine if accounting ethics have much impact on the practice of accounting profession in Nigeria, the factors that make the accountants breach accounting rules and if ethical codes of conduct address all the issues that border on ethical practices. The study employed a synthesis of descriptive and survey research methods. The major instrument used for generating the primary data was the questionnaire, which was designed in five-response option of likert-scale. Two hundred and fifty (250) questionnaires were administered, two hundred and nineteen (219) questionnaires were completed and returned. The data generated for this study were analysed through mean scores while the stated hypotheses were statistically tested with z-test. Our findings revealed that there are other major influence which accountants believe have impact on their professional conducts like policies and rules of companies where accountants work, religion were found not to have major influence in the professional conduct of accountants. The legal system and societal value systems also inter-played in the accountants’ professional conduct. It was recommended among others that the accountant in practice needs to pay attention to good ethical conduct and there is the need to adhere strictly to the ethical code of conduct. Keywords: accounting profession, accounting ethics, ethical codes of conduct, Nigeria. I. Introduction There are a number of situations in which the guidelines or ethical codes appear not too relevant. In such situations, accountants attempt to resolve such issues by chosing from their actions. Many accountants are likely to resolve conflict of interest, situation that border on loss of revenue or job, personal interest and beliefs cultural background and double standards in the application of sanctions without reference to the expectations of the accountancy profession (Akadakpo and Izedonmi, 2013). The issue of what is wrong or right comes up on a daily basis and the practicing accountant, students of accounting, preparer of accounts, accountants planning to set up professional practice, as well as accountants not in practice have obligation to conduct themselves within the limits of good ethical standards. A well-run profession or business must have high and consistent standards of ethics in order to stand fast and to stand the test of time (Smith and Smith, 2003). Finance and accounting departments in industries are taking ethical considerations to be extremely important (Vickers, 2005 as cited in Mathenge, 2012). A tension often exists between a company's financial goals and strategies to improve profits, and ethical considerations with concerns for right-behavior. When the public loses confidence in the ability of the market to prevent corporate misbehavior, it often demands increased government regulation. For example, frequent cases of misconduct by corporate executives have led to the passage of various Acts in Nigeria, Such Acts include the Companies and Allied Matters Act, 2004 Cap C20, LFN, the Economic and Financial Crimes Commission (EFCC) Act, 2004, the Investment and Securities Act (ISA) 2007, the Independent Corrupt Practices and other Related Offences (ICPC) Act 2003, Banks and other Financial Institutions Decree 2004, the Nigerian Deposit Insurance Corporation Act 2006, Money Laundering Act, and many others. The ethical lapses among public accountants, these has necessitated a revision of the accounting professional standards (Rist, 2002). Interestingly, professional accountant working in accounting firms are faced with new challenges within the profession as a result of the debacles of large corporations (Swift, 2002). Organizational cultures and environment pose a good opportunity for accountants to exploit the loopholes in reporting and financial management. Though finance and accounting departments in most organisation are expected to foster the growth of ethical education and awareness but they are often faced with stiff resistance from the top level management (Fisher and Lovell, 2009). Ethical standards set by professional accounting bodies in Nigeria, ICAN and ANAN, can act to supercharge the engine of morality and good conducts in the discharge of auditing functions in Nigeria. Efforts are being made to introduce and enforce the practice of ethical standards by the regulatory bodies, however, strict adherence to the standards has been a problem (Gowthorpe and Amat, 2005).