INVESTIGATION OF THE ORIENTATION IN ACCOUNTING ETHICAL PRACTICES IN GOVERNMENT MINISTRIES IN TANZANIA.

Unethical accounting practices have been teasing the United Republic of Tanzania for years; as such the Country has ever been experiencing difficulties in managing its public financial resources which could have been used to provide quality and adequate social services to majority of Tanzanians. Frequently, international and national reports have pointed out the existence of the problem in public entities. The major objective of this study was to investigate the orientation in accounting ethical practices in government ministries in Tanzania. Specifically, the study examined the influence of the perception of accountants on their role to the public on ethical practices, the influence the perception of accountants on their professional code of conduct on ethical practices, the influence of political pressure on accountants’ ethical practices and the influence the perception of accountants on their ethical orientation on accountants’ ethical practices. Methodologically, the study was qualitative influenced sequentially conducted to validate quantitative findings, and data were collected using in-depth interviews. The study involved a sample of 12 auditors purposively selected from the National Audit Office in Tanzania (NAOT) and the big four auditing firms. The data were analyzed qualitatively using content analysis approach whereby themes were coded and the results from the interview were recorded. The reliability of the study showed reproduction of the responses while the validity of the study was confirmed by facts whereby wide spread scandals of Richmond, BOT twin towers; EPA and Tegeta ESCROW Account were given as examples. The qualitative study was sequentially conducted to validate the empirical findings that were earlier obtained in quantitative study. The empirical findings from qualitative study, confirmed the quantitative results that the accountants’ role to the public and the accountants’ professional code of conduct do not influence ethical practices. They also confirmed that pressure from politicians and ethical orientation of individual accountants can influence the accountant’s ethical practices. However, the findings also indicated that unethical accounting practices may be caused by public services environment which allows the following vices: society evil expectation, political based appointments, confusing chain of command, corruption triangle, weak oversight bodies, weak internal controls, unpunished culprits and failure to uphold religious values; discriminative motivation, misbehaving leaders, poverty background and Selfishness. The study recommended the installation of better working environment in public entities which may, allow accountants to undergo post education professional orientation, curtail the political pressure and vices of the accounting ethics.