Abstract:

Although institutions are assumed to play a role in the quality of accounting practice, their impact is not well understood in the context of Nigeria. Drawing on the perception of users and compliers of accounting information, this study empirically investigates the impact of state institutions on the quality of accounting practice in Nigeria. Using multiple regression analysis, the results of this questionnaire-based study, show that there is a fairly significant impact of state institutions  on the quality of accounting practice in Nigeria. Though joint significance was observed, however, the level of impact differs among the institutions which implies that institutional  regulations are not enough to ensure that the quality of accounting practice is high in Nigeria. These findings provide support for the need to streamline, strengthen and harmonize existing regulatory arrangements and codify them as separate law in order to enhance their effectiveness in regulating accounting practice. Thus, inconsistencies in the provisions of the institutions and differences in assessment of the quality of accounting practice by the relevant bodies would be minimised and monitoring and enforcement of regulations enhanced.