Impact of Corporate Governance on Accounting Standards’ Compliance in Nigerian Public Institutions

Abstract

Purpose: Compliance with International Public Sector Accounting standards have been proved to improve the quality of financial reporting in both private and public sector. This study is an attempt to answer the question whether corporate governance have any influence on compliance of public sector entities with accounting standards (IPSASs). Methodology: Descriptive research and survey method of data collection was employed to collect primary data from relevant respondents using questionnaire as an instrument. Four hundred (400) questionnaires were distributed to senior level officers in Finance and Accounts, Internal Audit, and Procurement departments of twenty seven (27) government institutions which were purposefully selected out of a total a total of one hundred and twenty (120) from the south west geo political zone of the country because of proximity. Fifteen (15) respondents were selected from each institution covered except in five which was limited to fourteen (14) due to number of senior level officers in the selected department.  Only 92.5% of the questionnaires distributed were returned as validly completed. Findings: Findings revealed that the level compliance with IPSASs is high at 67%, which has very positive significant effect on the quality of financial reporting. Recommendation: It was concluded that compliance with IPSASs improve quality of Financial reporting and thus recommended that to improve the quality of financial reporting, the quality of corporate governance should be improved upon since this have direct positive effect on the quality of financial reporting in the sector