The Role of External Auditing in Limiting the Practice of Creative Accounting:An Analytical Study of the Opinions of a Sample of Academics and Professionals (Accountants and Auditors) at the University of Kirkuk
Keywords:
External Auditing, Creative Accounting, Financial StatementsAbstract
The study aims to examine the role of external auditing in limiting the practice of creative accounting in financial statements (income statement, balance sheet, cash flow statement, and statement of changes in equity) at the University of Kirkuk. The necessary data to achieve the research objectives were collected and analyzed through a questionnaire designed and distributed to the research sample, consisting of academics and professionals working at the university. The study employed a descriptive-analytical approach, and the data were processed using SPSS software. The research concluded several findings, the most significant of which is the presence of a statistically significant positive effect of external auditing in reducing the practice of creative accounting in financial statements. The study also found that creative accounting practices exist in financial statements at varying levels, with the highest occurrence in the income statement and the lowest in the cash flow statement. The researcher recommends enhancing the role of external auditing by applying international auditing standards and developing internal control systems to be more efficient and capable of detecting improper practices in the preparation of financial statements.