Effect of the professional accountants' ethical requirements on marketing by professional accounting firms in Tanzania

This study was conducted due to an apparent conflict between marketing needs by accounting practitioners and the restrictive provisions in the ethical code for Professional Accountants, issued by the International Federation of Accountants (IFAC) and for Tanzania the National Board of Accountants and Auditors (NBAA), to explore the effect that such provisions have on the way accounting practitioners market their services. Research hypotheses were developed from literature. Data were analysed quantitatively using the Statistical Package for Social Sciences (SPSS). Hypotheses were tested using the Chi-Square test, with other findings being tabulated in frequencies. Discussions with practicing accountants provided a qualitative input to the findings. It was found that firms perceive that the ethical requirements inhibit their marketing efforts, and that firm size, and presence/ absence of international affiliation in a firm are significantly related to the perception on whether the ethics inhibit marketing efforts and difficulty in making new clients, while the firm age and the proportion of the consulting business are not significantly related to such perceptions. However, the study found that firms perceive that the p vision is relevant, this being so regardless of the firm size. It is recommended that firms make use of the permissible marketing approaches, Regulators allowing but moderating advertising, and making an effective quality review of professional accounting services; 8id clients adhering to contemporary procurement regulations When procuring professional accounting services, such as competitive tendering.