Ethics in accounting: A dire necessity for practicing accountants in Bangladesh

Abstract

The study aims to critically examine the determinants of accounting ethics by practicing accountants as well as professional accountants working in Bangladesh. In addition, the study identifies the major factors affecting the ethical behavior of accountants. Using a 5-point Likert scale, the study collects primary data from a total sample of 110 respondents consisting both academicians and practitioners. The results revealed that there is a significant variation in the opinions regarding ethics between accounting academicians and practitioners. The majorities of the academicians have a high positive attitude toward professional ethics and perceive the afraid of creator, responsibility, accountability, objectivity, integrity, confidentiality and patience as the important determinants of accounting ethics. On the other hand, the practitioners view accountability, responsibility, transparency brotherhood, truthfulness, mutual trust, objectivity and integrity as the crucial determinants of ethics. However, both groups emphasized an ethical code of conduct, individual factors, moral development, personal value, environmental influence, peer influences, life experiences, and situational factors for accounting ethics. The findings of the study provide valuable insights to academicians, accounting practitioners, and policymakers in improving the code of professional ethics in Bangladesh. IIUC Studies Vol.18, December 2021: 47-64

Factors Affecting Accounting Student Perceptions of the Public Accounting Profession in Bangladesh

“…CPAs are the utmost leaders in business when it comes to maintaining the standard of financial reporting and giving the general public access to trustworthy financial data (Gabbin, 2019;Suryani et al, 2018). It is the most demandable profession in the contemporary job market in any emerging market economy such as Bangladesh (Ahmad, 2021;Elshandidy et al, 2021). The government of Bangladesh plans to establish 100 special economic zones by 2025 and a wide range of industries will be established there by local and foreign investors, which will result in a significant increase in the demand for chartered accountants in this country (Mahmud et al, 2020).…”

“…The government of Bangladesh plans to establish 100 special economic zones by 2025 and a wide range of industries will be established there by local and foreign investors, which will result in a significant increase in the demand for chartered accountants in this country (Mahmud et al, 2020). According to the demands of the economy, Bangladesh needs at least 12,000 chartered accountants to bring about excellent governance in trade, commerce, and industry, but the nation has only 2,000 chartered accountants (Ahmad, 2021). To manage, stabilize and hold a company's finances accountable, accounting is a fundamental component of the business (Tasnim Rahman & Mahmud, 2022).…”

“…Each academic year almost 1,50,000 students are enrolled in business studies at public universities of Bangladesh who learned at least one accounting course in their undergraduate and graduate programs. The number of articled students in the ICAB and ICMAB as of June 30, 2020, is 3993 and 8724 respectively (Ahmad, 2021). Compared to the demand for accountants in the country and other South Asian nations, Bangladesh has a relatively small number of registered professional accountants and articled students.…”

“…This is necessary to draw in global institutional investors and boost local investors' confidence who tend to value reliable financial reporting and sound corporate governance, to close this enormous funding gap (Karlsson & Neola, 2022;Mahmud et al, 2021).). Critical obstacles also include the waste of resources, corruption, lower productivity, and ineffectiveness in assuring value for money (Ahmad, 2021). It is interesting to note that professional accountants may play a crucial role in addressing all of these issues and may help a country like Bangladesh achieve sustained economic growth if the right policies are put in place (Akrout & Ayadi 2022;Bouilheras et al, 2021).…”

“…Compare to its population, economic growth, and business students, there have a few numbers of chartered accountants in Bangladesh (Ahmad, 2021). It also does not have enough competent accountants and financial professionals.…”