HUMANISE CORPORATE GOVERNORS – ERADICATING ACCOUNTING FRAUD BY AUGMENTING ETHICAL SENSITIVITY AND RELIGIOSITY IN ACCOUNTING EDUCATION

The purpose of this paper is to review behavioural accounting and the relationship between ethical sensitivity and religiosity to influence the behaviour of accountants when faced with ethical dilemmas. The research problem is that accounting fraud is on the rise and alternative measures must be looked into to restraint this issue. Rather than focusing only on greater transparency and more stringent control through improving and introducing new rules and regulations, ethical reasoning should also be addressed seriously, with emphasis on ethical sensitivity and religiosity to assist individuals to justify their actions. As a conceptual paper, the design of this study is an endeavour in-depth literature review of the supporting areas of concern in behavioural accounting to discuss the relationship between ethical sensitivity and religiosity. This study finds that accounting ethics education intervention at the tertiary level may possibly be the solution to eliminate or reduce accounting fraud by educating the future accounting practitioners so that they are prepared when faced by ethical dilemma and to be more exposed to ethical dilemma as part of the curriculum to tackle ethical issues appropriately. The implication of this study is that by establishing the link between ethical sensitivity and religiosity and applying effective accounting ethics teaching methods at tertiary level to inculcate ethical sensitivity via religiosity will solve unethical accounting practices. A collaboration between the institutes of higher learning and the Ministry of Education can devise a plan to induce the appreciation of relevant religious tenets related to ethical behaviour to be embedded with accounting ethics for accounting students.