Abstract

This study investigates the effects of unethical accounting practices on the quality of financial reporting in Cameroon, with a specific focus on NFC Bank Buea. Unethical accounting practices include activities such as financial misreporting, fraudulent accounting entries, and manipulation of financial statements. These practices undermine the reliability and accuracy of financial reports, which can lead to significant consequences for stakeholders, including investors, regulators, and the general public.

The research employs a mixed-method approach, combining quantitative data from financial reports with qualitative insights from interviews with key stakeholders at NFC Bank Buea. The study assesses the extent of unethical practices and their impact on financial reporting quality. Quality is evaluated based on criteria such as accuracy, transparency, and compliance with accounting standards.

Findings reveal that unethical accounting practices adversely affect the quality of financial reporting at NFC Bank Buea. Specifically, these practices lead to distorted financial statements, which misrepresent the bank’s financial health and performance. This misrepresentation can result in misguided investment decisions, regulatory penalties, and loss of stakeholder trust. The study identifies common unethical practices, including earnings manipulation, improper revenue recognition, and concealment of liabilities.

The analysis highlights that the presence of unethical accounting practices significantly reduces the reliability and transparency of financial reports. Consequently, this undermines the bank’s credibility and can lead to regulatory scrutiny and legal repercussions. The study suggests that strengthening internal controls, implementing rigorous auditing procedures, and fostering a culture of ethical behavior are critical to improving financial reporting quality.

To mitigate the effects of unethical accounting practices, the study recommends that NFC Bank Buea and similar institutions adopt comprehensive ethics training programs for employees, enforce stricter compliance with accounting standards, and establish transparent reporting mechanisms. Additionally, ongoing monitoring and enforcement of ethical standards can help ensure the accuracy and integrity of financial reporting.

Keywords: Unethical accounting practices, Financial reporting quality, NFC Bank Buea, Financial misreporting, Fraudulent accounting, Accounting standards, Internal controls, Ethical behavior.