EXPLORING THE IMPACT OF ETHICAL PRACTICES ON FINANCIAL REPORTING QUALITY IN MAURITIUS

This study examines the link between accounting ethics and the quality of financial reporting, highlighting the urgency of addressing unethical behavior in the accounting profession. Using primary data from 245 accounting firms, the research analyzes the impact of five ethical attributes from the Code of Ethics: integrity, objectivity, professional competence, due care, confidentiality, and professional behavior on financial reporting quality. The findings reveal a causal relationship between ethics and reporting quality. Objectivity, professional competence and due care, and confidentiality all show a statistically significant positive relationship with reporting quality. Conversely, integrity and professional behavior exhibit a negative relationship with financial reporting quality, suggesting these attributes might detract from it. The specific sample of accounting firms limits the study, potentially affecting the generalizability of the results. Future research could expand the sample size and explore different geographical contexts. The study emphasizes the importance of professional development programs to enhance accountants’ knowledge and training and underscores the need for adherence to ethical standards to improve financial reporting. By fostering a culture of ethical behavior within the profession, the study contributes to the integrity of financial reporting, crucial for stakeholder trust and economic stability. This research provides valuable insights for practitioners and policymakers.