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Effect of Accounting Education on Students’ Knowledge of Financial Due Diligence in Nigerian Universities

Abstract

Accounting education plays an important role in developing students’ knowledge and skills for examining, interpreting, and evaluating financial information. Financial due diligence involves the systematic examination of financial records and information to assess the financial condition, performance, risks, and reliability of an organization before important business decisions are made. However, accounting students may have limited knowledge of financial due diligence procedures when their learning focuses mainly on conventional accounting tasks. This study therefore examines the effect of Accounting Education on students’ knowledge of financial due diligence in Nigerian universities. Accounting education provides students with knowledge of financial accounting, auditing, financial reporting, taxation, management accounting, and accounting information systems. Through theoretical instruction and practical learning activities, students develop skills in examining financial records, identifying inconsistencies, analyzing financial statements, evaluating transactions, and interpreting accounting information. These areas of accounting education provide a foundation for understanding the procedures involved in financial due diligence, including the examination of financial statements, verification of financial records, assessment of liabilities, and evaluation of financial performance. Students’ knowledge of financial due diligence refers to their ability to identify, explain, and apply basic procedures used to examine financial information before business decisions or transactions are undertaken. This includes understanding how to review financial statements, verify accounting records, examine assets and liabilities, assess financial obligations, identify unusual financial information, and evaluate the reliability of financial data. Adequate knowledge of financial due diligence can help accounting students understand how accountants and other financial professionals investigate financial information and identify potential financial risks. Accounting education may therefore influence students’ ability to understand and apply financial due diligence principles. The study will adopt a descriptive survey research design. The population will comprise accounting education students in selected Nigerian universities, from which an appropriate sample will be selected using a suitable sampling technique. Data will be collected using a structured questionnaire designed to measure students’ exposure to accounting education and their knowledge of financial due diligence. The instrument will be subjected to appropriate validity and reliability procedures before administration. Data collected will be analyzed using descriptive statistics and inferential statistical techniques appropriate for determining the effect of accounting education on students’ knowledge of financial due diligence. The study is expected to establish that accounting education has a positive effect on students’ knowledge of financial due diligence. Students who receive adequate theoretical and practical accounting instruction are expected to demonstrate stronger understanding of the procedures used to examine financial records, verify financial information, identify inconsistencies, and assess financial risks. The study may also establish that practical exposure to auditing exercises, financial statement analysis, and accounting investigation activities strengthens students’ understanding of financial due diligence. The findings are expected to have important implications for teaching and learning in accounting education. Accounting educators may need to incorporate financial due diligence concepts into relevant accounting, auditing, and financial reporting courses. Practical exercises involving the examination of financial statements, verification of accounting records, identification of unusual transactions, and assessment of financial obligations can help students develop a clearer understanding of due diligence procedures. Such activities can strengthen students’ analytical abilities and improve the practical relevance of accounting education. The study will be significant to accounting education students, accounting educators, university administrators, curriculum planners, professional accounting bodies, employers, and organizations involved in business transactions. Students may benefit from improved knowledge of financial investigation and evaluation procedures relevant to professional accounting practice. Educators and curriculum planners may use the findings to strengthen practical components of accounting and auditing education, while employers and professional bodies may benefit from graduates who possess better preparation for financial review and assessment responsibilities. The study recommends that Nigerian universities incorporate practical financial due diligence activities into accounting education programmes. Accounting educators should expose students to realistic financial records, financial statement review exercises, audit-based cases, transaction verification activities, and financial risk assessment tasks. Students should also be encouraged to develop the ability to critically examine financial information before drawing conclusions. The study concludes that relevant and practically oriented accounting education can enhance students’ knowledge of financial due diligence and better prepare them for professional responsibilities involving financial examination, evaluation, and decision support.

Keywords: Accounting Education, Financial Due Diligence, Accounting Students, Financial Analysis, Financial Reporting, Auditing, Financial Records, Financial Information, Financial Risk Assessment, Accounting Investigation, Financial Statement Review, Transaction Verification, Accounting Knowledge, Practical Accounting, Professional Competence