Effects of Ethical Compliance on Professional Accountants in Selected County Governments of Kenya

Abstract

Kenya has experienced the failure of multiple business organizations which has been mainly attributed to puny ethical system of these organizations. In spite of the availability of strict laws, many of the business managers still find lee way to misappropriate the finances of the business firms hence leading to their failures or collapse. This study, seeks to provide information relevant for determinants of ethical compliance by accountants in county governments in Kenya. The study objectives were; to institute influence of inner controls on the ethical submission by accounts professional in selected county governments of Kenya, to define influence of payment of accountants on ethical submission by accounts professional in selected county governments of Kenya and to evaluate the influence of freedom of accountants on the ethical submission by professional accountants in selected Kenyan county governments. The study was anchored on descriptive design and from the population of 245 professional accountants a sample size of 151 accountants was drawn. Respondents were administered with questionnaires for quantitative data. Data was analyzed both descriptively (mean, frequencies and percentages) as well as regression analysis. The study found that independence of accountants, internal controls and remuneration for accountants significantly and positively influence on compliance with code of ethics among the accountants in county governments. The study recommends that the policy makers of professional bodies such as ICPAK and IFAC should come up with policies that manages the weaknesses ascribed to compliance with the code of ethics among the professional accountants working in county governments and monitor measures that guarantee application of the same. The county governments should design strict policies and guidelines that ensures that all professional accountants detest from being victims of noncompliance with the code of ethics. The county government stakeholders should ensure that internal controls, remuneration and independence of accountants are upheld, well-structured and institutionalized.