The quality of financial reporting, accounting errors and fraud, and the sustainability of SMEs an empirical analysis of SMEs in Kinshasa, Democratic Republic of the Congo

Abstract

Small and medium-sized enterprises (SMEs) in the Democratic Republic of the Congo remain constantly exposed to accounting errors and fraud. If left undetected, these irregularities can undermine the reliability of financial information, lead to a biased representation of the entity’s financial position, encourage inappropriate decision-making and jeopardise their long-term viability.

The aim of this research is to empirically analyse the relationships between the quality of financial reporting, accounting errors and fraud, detection and prevention mechanisms, and the sustainability of SMEs in the context of the city of Kinshasa. To achieve this aim, a mixed-methods approach was adopted. The qualitative study was conducted with six chartered accountants, whilst the quantitative survey involved 113 respondents from the audited SMEs.

The results obtained demonstrate the existence of several accounting irregularities in SMEs. They also indicate that detection and prevention mechanisms do indeed contribute to improving the quality of financial reporting, which in turn has a significant positive effect on the sustainability of SMEs.

Keywords: financial reporting, quality of financial reporting, accounting errors, accounting fraud, detection and prevention mechanisms, sustainability of SMEs, Kinshasa.

Received Date: June 19, 2026

Accepted Date: July 10, 2026

Published Date: August 01, 2026

Available Online at: https://www.ijsrisjournal.com/index.php/ojsfiles/article/view/827