IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 9 NO. 10 2023
DOI: https://doi.org/10.56201/jafm.v9.no10.2023.pg158.184

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Conflicts of Interest in Accounting: Implications and Solutions

Akpan,James U., Oluwagbade, Oluyinka I., and Adewara, Yinka M

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Abstract

Conflicts of interest represent a pervasive challenge across industries, with particular prominence in accounting and finance. This study delves into the multifaceted landscape of conflicts of interest, exploring their definitions, types, implications, and strategies for mitigation. Drawing on a wide range of academic research, regulatory insights, and real-world case studies, this comprehensive examination seeks to shed light on the complexity and significance of conflicts of interest. The research uncovers that conflicts of interest can manifest in various forms, including self-interest conflicts, familiarity threats, and advocacy challenges. These conflicts extend beyond mere ethical dilemmas, as they can significantly impact the integrity of financial information, investor confidence, legal compliance, and the broader ethical reputation of professions. The study reveals that addressing conflicts of interest demands a multi-dimensional approach, involving ethical education, regulatory oversight, and the cultivation of ethical leadership and organizational culture. Furthermore, the research identifies emerging trends, including the influence of technological advancements, globalization, and shifting societal expectations. It underscores the need for proactive adaptation to these trends to ensure effective conflict management in the years ahead. In conclusion, conflicts of interest pose complex and evolving challenges that necessitate continuous attention and ethical diligence. By embracing strategies such as ethical education, enhanced oversight, technological integration, and ethical leadership, industries and professions can proactively address conflicts, uphold ethical standards, and preserve trust and integrity in their respective fields. This study provides valuable insights and recommendations for

keywords:

Conflicts of Interest, Accounting Ethics, Financial Reporting, Ethical Decision- Making, Regulatory Compliance, Risk Management, Professional Codes of Conduct

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References:

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Bangun, Y.K., & Asri, M. (2017). Auditor Ethical Decision Making. In Scientific Research
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Barnea, A., Ronen, J., & Sadan, S. (2010). An analysis of the Barings Bank failure. Critical
Perspectives on Accounting, 21(7), 549-565.

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