INFLUENCE OF ACCOUNTANTS’ INDEPENDENCE ON QUALITY OF FINANCIAL REPORTS IN COMMERCIAL BANKS IN SOUTH SUDAN: A DESCRIPTIVE CROSS SECTIONAL STUDY.

Abstract

Background

This study aims to determine the influence of accountants’ independence on quality of financial reports in commercial banks in South Sudan.

 Methodology

Descriptive survey design was utilized to conduct the study. The target population in this study was 190 accountants distributed over the head offices of 8 commercial banks that were domiciled in South Sudan. Stratified sampling was employed incorporating each segment of the population sample. The study targeted 129 respondents to participate in the study where questionnaires were used as data collection tools.

 Results

Respondents agreed that accountants participated in the development of the processes of the bank (mean = 3.99) and also agreed that accountants had unhindered access to all employees, units and departments in the bank (mean = 3.97).  More results indicated that respondents agreed that accountants report to the highest level within the banks (board or management committee) (mean = 3.91).

 Conclusion

The study concludes that independence of accountants had a positive and significant effect on quality of financial reports.  The accountants in the commercial banks participated in control and development processes in the banks, were provided required access to data and human resources, and reported to the highest level within the banks.  Markedly, they determined the scope of internal auditing, performing work, and communicating results.

 Recommendations

The commercial banks should continually develop their accounting staff both internally and sponsoring them for educational seminars or workshops. Risks in the banking sector are evolving and the accounting employees need to have high competence in detecting and preventing losses from fraud and other such risks.  Moreover, accounting staff should become continually developed in use of IT in accounting and auditing as most functions of the commercial banks are being carried out in an IT environment.