Abstract:
Introduction of accounting fundamental principles which are Integrity, Objectivity, Confidentiality, Professional behavior and Professional Competence and due care was based on ensuring that professional accountants behave ethically in performing their work. As for accounting profession, accountants in Tanzania are supposed to observe all those fundamental principles. The purpose of this study was to determine the level of compliance with fundamental principles by professional accountants in public institutions.
The study which employed Case study design was conducted at Tanzanian National Audit Office. The method used for data collection was interview and the data were analyzed by using thematic analysis method.
The findings revealed that Professional Accountants of public institution comply with fundamental principles at moderate level and they were found to have high level of awareness on the fundamental principles. The study revealed that confidentiality, professional competence and professional behaviors are the most complied fundamental principles compared to integrity and objectivity principle. Findings also revealed that conflict of interest, management pressure or poor leadership, lack of competence, ineffective internal control, and poor professional body support were the main factors affecting compliance with fundamental principles in public sector. Self-interest, intimidation and familiarity threats have largely affected compliance. The study concludes that the professional accountants’ compliance with the fundamental principles have been moderate in the country as a result of different structural and institutions causes.
Based on the findings, the study recommends that the NBAA must have strong enforcement on the compliance with fundamental principles. Professional accountant must avoid self-interest and fear instead they should strongly abide with and be committed to ethical principles. The professional accountants also must attend more ethical trainings and professional courses. Further extensive empirical study should be conducted on the compliance with fundamental principles for professional accountants in whole public institutions in Tanzania.
