The international Public sector Accounting Standards govern the accounting by public sector entities, except for government business enterprises. Heald [1] noted that international public sector accounting standards (IPSAS) is at present the focal point of the global revolution in government accounting in response to calls for greater government financial accountability and transparency. The Public sector comprises entities or organizations that implement public policy through the provision of services and the redistribution of income and wealth, with both activities supported mainly by compulsory tax or levies on other sectors. This comprises governments, and all publicly owned, controlled and or publicly funded agencies, enterprises, and other entities of government that deliver public goods or services [2].

Malombe opined that” donors may use the financial statements and a disclosure there is to take financial decisions on financing certain program and projects”. In the words of Gilvan Dantas, the accounting sub secretary, Ministry of Finance, Brazil “with the adoption of accrual accounting standards based on IPSAS, the country will be able to better project its cash flows, evaluate and compare itself with other countries; and lastly quoting Brian Quinn, the Director, World bank ” resarch has shown that more transparent countries have better credit ratings, better fiscal discipline, and lower borrowing costs”.

Meanwhile, the analysis study undertaken by the federal government of Nigeria in an attempt to benchmark government accounting in Nigeria with cash IPSASs" unveiled that the traditional cash basis of accounting was inadequate as it fails to take into cognizance accurate "costs, all assets and liabilities" made by the government [3]. Again, the cash accounting easily neglects "asset management, accumulating arrears, future liabilities" – pension etc; and contingent liabilities – guarantees; as no full disclosure is being made in this regard. Non-current asset, however, is not being "treated as capital expenditure items" instead, written off as revenue expenses in the years of purchase. The traditional cash basis of accounting also aids poor budget implementation and mismanagement of public funds as well as a lack of accountability and transparency [4]. 

Furthermore, the emerging need and use of information technology by both the public and private sectors have made the issue of the public sector accounting a pertinent part of accounting studies in the world. Speaking on the effect of level of corruption in Nigeria, Adegite [5] reported that corrupt tendencies pervaded the strata of the Nigerian society so much so that the youths, who are supposed to be the leaders of tomorrow, are neck-deep in examination malpractice, 419 and internet fraud. The need for improved and increased recognition, measurement, presentation and disclosure requirements in related to transactions and events in general purpose financial statements has led to the adoption of International Public Sector Accounting Standards (IPSAS), as traditional cash basis of accounting aids poor budget implementation and mismanagement [6].            

The study of IPSAS has been carried in foreign countries and some states in Nigeria but there is no studies of this nature in Enugu State hence the significance of this study. It was against the above backdrop that this study is considered very necessary in this state, considering the arguments that IPSAS could address financial accountability related challenges. This study examine the extent to which adoption of international public sector accounting standards assist in curbing corrupt practices among public officers in Enugu State.

Consequently, the null hypothesis will be formulated to guide the study: 

Ho₁

The adoption of international public sector Accounting Standards does not assist in curbing corrupt practices among public officers in Enugu State.

Review of Related Literature 

International Public Sector Accounting Standards (IPSAS): The development of the IPSAS has its origin in the accounting progression as a way to improve the transparency and accountability of governments and their agencies by improving and standardizing financial reporting. The IPSAS Board (IPSASB) is an independent standard-setting board supported by the International Federation of Accountants (IFAC) [7]. The IPSASB issues IPSAS, guidance, and other resources for use by the public sector around the world. The IPSASB (and its predecessor, the IFAC public sector committee) has been developing and issuing accounting standards for the public sector since 1997. As transactions are generally common across both the private and public sectors, there has been an attempt to have IPSAS converged with the equivalent International Financial Reporting Standards (IFRS). 

The IPSAS are also developed for financial reporting issues that are either not addressed by adopting IFRS or for which no IFRS has been developed. According to Achua of the IPSAS are based on an accrual basis which is in line with IFRS. The IPSASB started out with the conceptual framework of the International Accounting Standards Boards (IASB) and is in the process of developing its own conceptual framework to meet the financial reporting needs of entities in the public sector.

IPSAS Adoption And Corruption Reduction

Over the years, citizens of some developing countries have been blaming and accusing their leaders of mismanagement and diversion of public resources for their personal gains. While some members of the public describe the ugly menace as stealing, others term it corruption [8]. It was in this direction that Nweze [9] observed that adoption and proper implementation of IPSAS would create an avenue for the reduction in case of manipulation of financial resources in the public sector since one of the objectives of IPSASs is to engender transparency and accountability in the operation of public entities. It was also added that full and proper implementation of IPSAS pave way for Related Party Disclosure which by extension checks cases of corruption through effective, efficient, and transparent financial reporting in the public sector [10]. 

Because official corruption is a threat to government legitimacy and authority and reduces the amount of public money available to fund public services, adoption and implementation of IPSASs by the accounting profession are giant steps in the global fight against government corruption [11].

Empirical Studies 

Olola [12] examined the effect of International Public Sector Accounting Standards on financial accountability in the Nigerian public sector in Ondo State. The questionnaire was used to gather information from the selected respondents in the departments. The study employed Multiple Regression Analysis and Pearson’s Correlation Matrix to identify the effect of International Public Sector Accounting Standards on financial accountability in the Nigerian public sector. The study revealed that the International Public Sector Accounting Standards have a positive and significant effect on the efficient management of public funds in the Nigerian Public sector. Zhuquan and Javed [13] examined the extent of adoption of the International Public Sector Accounting Standards (IPSAS) in South Asia and the challenges that are decelerating this process. The study indicates that most of the South Asian nations have adopted the IPSASs though to different extents. Nepal, Bangladesh, Pakistan, and Sri Lanka have implemented the IPSAS but taking different approaches and directions, while India still uses the cash-based accounting system.      Akinleye and Alaran-Ajewole [14] determined the effect of International Public Sector Accounting Standards on information delivery in Nigeria. They employed a questionnaire to generate information from two hundred and sixty-six (266) respondents from the Federal Ministry of Finance, FCT-Abuja and Ekiti State Ministry of Economic Planning and Budget, Ado-Ekiti. The study employed Ordinary Least Square Regression to test the hypotheses and found that the adoption of International Public Sector Accounting Standards increased the quality of information delivery thus enhanced the level of accountability and transparency of Nigeria public sector. Kartiko, Rossieta et al. [15] examined the government accrual-based IPSAS implementation level measurements and to test the measures associated with central government fiscal transparency. Conducting panel data regression, they found that accrual level scores meet the requirements of the external validity test, as indicated by their positive association with the International Budget Initiative’s (IBP) fiscal transparency index. Okere, Eluyela et al. examined the relationship between International Public Sector Accounting Standard adoption and reliability, credibility and integrity of financial reporting in State Government Administration in Nigeria. The study used a questionnaire to collect data from 40 respondents from Ministry of Finance, Ministry of Economic Planning and Budget, Office of Local Government Auditors in Abeokuta, and Local Government Service Commission (LGSC) Abeokuta and analyzed with the Pearson moment correlation technique. The study shows that implementation of IPSAS will improve the reliability, credibility and integrity of financial reporting in State Government administration in Nigeria. Duenya, Upaa, and Tsegba [16] established the effect of adopting International Public Sector Accounting Standards on accountability in public sector financial reporting in Nigeria. They employed Chi-square and Kruskal Wallis H test, Mann- Whitney U test, and Cohen effect. The finding from the study revealed that significant differences existed between accounting personnel, academics, and auditor on the effect of International Public Sector Accounting Standards adoption on Nigeria’s public sector financial accountability. Abimbola, Kolawole and Olufunke [17] examined the impact of International Public Sector Accounting Standards on the financial accountability of selected local governments of Oyo State, Nigeria. Data was gathered with the use of five-point likert-scale questionnaires administered to sample of 105 Accountants and Internal Auditors in the selected local governments of Oyo State Nigeria. They analyzed the data with the use of descriptive statistics. The result of the chi-square indicated that showed that the adoption of International Public Sector Accounting Standards increases the level of accountability, transparency and reduces corruption in the selected local governments. Ademola, Adegoke, and Oyeleye [7] evaluated the impact of International Public Sector Accounting Standard (IPSAS) on the financial accountability of selected local governments of Oyo State, Nigeria. The hypotheses formulated were tested using chi-square analysis at 5% level of significance. The result of the study showed that adoption of IPSAS increases the level of accountability, transparency and reduces corruption in the selected local governments. Opaniyi [18] investigated the effect of adoption of International Public Sector Accounting Standards on quality of financial reports in meeting the criteria for decision usefulness in Kenya. The study found that that adoption of IPSAS is adjudged to have moderate effect on quality of financial reports in public sector in Kenya. Nkwagu, Uguru, and Nkwede [6] determined the implications of IPSASs on accountability of Nigeria public sector in the South Eastern states of Nigeria. The data was analyzed using descriptive statistics. Three hypotheses formulated were tested using one-way ANOVA model via Prism GraghPad at 5% level of significance. Findings unveil that IPSASs adoption enhances accountability in the Nigerian public sector as the standards pave way for improved management of public funds. Tanjeh [19] examined the factors influencing the acceptance of government accounting reforms in general and International Public Sector Accounting Standards in particular in Cameroon. The study was analysis using Ordinary Least Squares (OLS) and Ordered Logistics Estimation techniques. The study revealed that the determining factors of International Public Sector Accounting Standards acceptance in Cameroon. Salome [20] ascertained the effectiveness of the economic and financial crime commission (EFCC) in checkmating Public Sector Accountants operation in Nigeria. The study used questionnaire to gather data from 80 accountants in accountants from post-primary school Service Commission (PPSSC) and Local Government Service Commission in Anambra State. The study employed Mean score and t-test statistical tools to analyze the data collected. The study found that accountants are to enforce financial accountability. Johan, Christophe, Francsca, Matalici, and Philippe employed specific questionnaire construction to investigate to what extent International Public Sector Accounting Standard (IPSAS) accrual accounting is adopted in central/local government Worldwide in a sample of Countries. The study also investigated which factors affect the differing level of their adoption. Their study revealed that an important move to IPSAS accrual accounting generated caused a level of reluctance mainly in central governments Countries where business like accrual accounting has been developed. Ifezue conducted a study on the relationship between IPSAS and reliability, credibility and integrity of financial reporting in government. The researcher observed that implementation of IPSAS in Nigeria will improve the quality of accountability and financial reporting, facilitate efficient internal control and result-based financial management, and enhance service delivery more efficiently and effectively. Connolly and Hyndman assert that costs and benefits of adopting accrual accounting in Northern Ireland, a region of the UK, concluded that there was little evidence that accrual accounting information was extensively used in decision making within the Northern Ireland public sector. Many interviewees identified the problems of unnecessary complexity and incomprehensibility of the information undermining its potential use. They noted that there were serious deficiencies in the accounting skills available which contributed to a rushed, confusing and uneven implementation. 

The study of IPSAS has been carried in foreign countries and some states in Nigeria but there is no studies of this nature in Enugu State hence the significance of this study. It was against the above backdrop that this study is considered very necessary in this state, considering the arguments that IPSAS could address financial accountability related challenges.

Research Design

This study adopted survey research design. Survey design involves the use of the sample to obtain the opinion of a large number of people. It is a research design that studies the information gathered from a fraction or percentage of the population. 

Population and Sample Size of the Study

The population of the study consists of all the staff of Enugu State ministries of finance, Enugu. The element of 

Table 1: Applying The Mean Score for Testing the Hypothesis Extracted from 

Source: Field Survey, 2020

Table 2: Paired Samples Statistics

Table 3: Paired Samples Test

the population comprises all the 127 staff the ministry. A sample size of 96 was obtained from a population of 127 staff of ministry of finance, Enugu using Taro Yamane’s formula. 

Source of Data Collection

To obtain reliable information that will help the researcher to ensure the effectiveness of the study in question, data was collected from the primary source through questionnaire. The questionnaire was design in a structured form and made up of general questions of research questions to be answered hypothetically and was restricted with the responses made of strongly agree (SA) agree (A) undecided (U) strongly disagree (SD) and disagreed (D). 

Method of Data Analysis

Data collected for the study were analyzed by the researcher using frequency counts, mean score and standard deviation. The hypothesis was tested using t-test statistical tool with aid of SPSS version 20.0 at 5% level of significance. 

Decision Rule

Using SPSS, 5% is considered a normal significance level. The accept reject criterion was based on the computed t-value. If the calculated t-value is equal or greater than table t-value, we reject Null and accept the alternate hypothesis.

Hypothesis One 

Ho1: The adoptions of International public sector Accounting Standards do not reduce corruption among public officers in the ministry.

Decision

From the above table, the mean of y is 3.7350 as against x which is 3.00. In this case, the mean of y is higher than that of x (the mean score). Looking at the mean score table 4.3.3, the mean scores of y are not by chance hence scored above the bench mark and indicate a positive response. Based on this, the study rejects null hypothesis and accept the alternative hypothesis which state that the adoption of International public sector Accounting Standards reduced corruption among public officers in the ministry.

The study revealed that the adoption of International public sector accounting standards adoption leads to accountability; enhance transparency and reduce corruption among public officers in the ministry.The result is in line Olola [12] on Ondo state local government revealed that International Public Sector Accounting Standards has positive and significant effect on the efficient management of public funds in the Nigerian Public sector. Akinleye and Alaran-Ajewole [14] study in Ekiti State found that that adoption of International Public Sector Accounting Standards increased the quality of information delivery thus enhanced level of accountability and transparency of Nigeria public sector. Okere, Eluyela, Bassey and Ajetunmobi [21] indicated that implementation of IPSAS will improve the reliability, credibility and integrity of financial reporting in State Government administration in Nigeria. Balogun carried a study in Ekiti and found that adoption of International Public Sector Accounting Standards is expected to increase the level of accountability and transparency in public sector of Nigeria. 

This study shows that while few countries were yet to adopt IPSASs, many countries that have adopted had started witnessing improvement and reduced the corruption of financial statements. The study revealed that the adoption of International public sector accounting standards adoption reduces corruption among public officers in the ministry.

However, the challenges that are associated with the adoption of the standards have been observed to include, lack of requisite financial resources, lack of required qualified accounting personnel, resistance of some stakeholders to the adoption, inadequate infrastructural facilities, inadequate capacity to carry the new system, and unsteady political will for alteration of country’s constitution to accommodate the new accounting standards. 

The finding of this study implies that IPSAS would ensure credibility and integrity, which were key to international best practices in financial reporting. This will ensure that financial statements are comparable across jurisdictions, and enable stakeholders to assess how well their resources have been utilized.

Based on the result of the study, the researcher recommended that the Nigerian government should provide the requirements for full implementation and sustenance of IPSASs in the public sector if it is sincere and serious about tackling corruption in the country.

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