Accounting professionalism and the quality of financial reporting in local governments.

Abstract

The study was set to establish the effect of accounting professionalism on the quality of financial reporting of Local Governments in Uganda with specific evidence from Luweero District Local Government. Its objectives included determining the influence of professional knowledge of accountants on the quality of financial reporting, establishing the influence of personal integrity of an accountant on the quality of financial reporting and evaluating the influence of professional independence of an accountant on the quality of financial reporting in Luweero District Local Government. The study used a cross sectional relational both analytical and descriptive as well as both analytical and descriptive design in which data was collected from 60 district local government employees using self-administered questionnaires and in-depth interviews. Documentary review was also undertaken to supplement. The major findings of the study that were comparable to the qualitative results revealed a statistically significant positive effect of professional knowledge (β= 0.434; t = 7.102; p value = 0.000), personal integrity (β = 0.372; t = 6.173; p value = 0.000) and professional independence (β = 0.426; t = 6.375, p-value = 0.000) on the quality of financial reporting in Luweero District Local Government and multivariate analysis level. The study based on the objectives and results concluded that professional knowledge, personal integrity and professional independence as dimensions of accounting professionalism were significant influential factors that determine the quality of financial reporting in local governments. This influence was such that improvements in professional knowledge, personal integrity alongside professional independence were followed by better financial reporting and vice versa. The study as per the results and conclusions recommended among others that for better quality in financial reporting, district local government leadership should initiate and facilitate knowledge enhancement programs for accountants in areas of how to detect fraud in accounting. It is also recommended that the government through its line ministry of local government designs and institutes mechanisms that promote ethics that encourage demonstration of restraint by the top administrative officers from influencing district accountants performing their duties.