Abstract:
This study assesses the impact of audit practice on professional ethics. Audit practice in Nigeria, as in many other countries, is guided by professional ethical codes of conduct, in addition to statute. The Institute of Chartered Accountants of Nigeria regulates the professional conduct of its members in the performance of their auditing functions with a view to ensuring the highest possible professional practice comparable and acceptable internationally. The institute issues code of professional conduct for its members which outline the propriety of conducts in matters of professional practice. Such codes of conduct relate to the requirements on the part of members in matters of: independence; integrity; honesty; technical competence; compliance to technical standards; confidentiality and accountability. In the light of this, this study was undertaken with the main objective of examining the impact of audit practice on professional ethics in some listed firms in Nigeria. The study adopted exploratory assessment methods by reviewing research work done by other writers and authorities in related fields. To achieve these, a large volume of library and internet materials were deployed and subjected to a critical review. Based on the review, it was discovered that lack of professional ethics contributes to the ineffectiveness of quality duty disbursement as it relates to some listed firms in Nigeria which would have encouraged keeping of accurate records of accounts to aid a discouraged corrupt practice among staff. The study also revealed that “The Nigerian Companies and Allied Matters Act, 1990” (as amended) particularly Sections 358- 363 also made provisions that could enable an auditor to avoid relationships that result in undue pressure and conflict of interest so that his report can be taken as being of high quality thus an important factor contributing to the success of the audit, is the ability to be independent, to act as a watchdog’ and to conduct audits timorously. In view of these findings, the study recommends the adherence to the existing ethical code of conduct is considered an essential guide for every professional accountant and auditor in practice and also that there must be a total commitment to the rules of ethics and professional conduct by the auditors in order to positively impact on audit quality practice.
