The Role Of External Auditor Commitment To The Audit Profession Ethics In Reducing Creative Accounting Practices

2020 ◽  
pp. 3
Author(s):  
Safia Ikhlef ◽  
Mohamed Torchi
Keyword(s):  
Creative Accounting ◽  
External Auditor ◽  
Profession Ethics

The Role of External Auditor Responsible in Examining and Assessing the Sustainability Dimensions of the Audited Companies

2021 ◽  
Vol 39 (11) ◽  
Author(s):  
Asaad Mohammed Ali Wahhab
Keyword(s):  
Statistical Analysis ◽  
Random Sample ◽  
Corporate Sustainability ◽  
Professional Responsibility ◽  
Global Reporting Initiative ◽  
External Auditors ◽  
The Future ◽  
Study Population ◽  
External Auditor

The study aims to identify the responsibility of the external auditor in examining and evaluating the dimensions of sustainability information from the perspective of the auditors who are working in Iraqi companies and auditing offices. To achieve this goal, a questionnaire was created and distributed to a random sample of the study population consisting of auditors working in Iraqi companies and auditing offices. 83 questionnaires were retrieved, and all were valid for statistical analysis, which indicates100% of the sample study. The results of the study show that there is awareness among the external auditors in Iraq about their responsibility to examine and evaluate information related to dimensions of economic, environmental and social and the governance rules for sustainability and their application of the standards on the global reporting initiative (GRI). Besides, the presence of high trend among the auditors causing them to be accountable to the society who are the stakeholders, causing problems that can hinder the performance of the auditors in fulfilling their professional responsibility. This study will highlight several pieces of evidence from the works of literature as references of information to the external auditor and the corporate sustainability in Iraq to the future empirical and theoretical researcher.

The Role of Accounting Mechanisms for Corporate Governance in Reducing Creative Accounting Practices in Telecommunications Sector Companies in Riyadh City: An Empirical Study: دور الآليات المحاسبية لحوكمة الشركات في الحد من ممارسات المحاسبة الإبداعية في شركات قطاع الاتصالات بمدينة الرياض: دراسة ميدانية

2020 ◽  
Vol 4 (15) ◽  
Author(s):  
Lamis Jameel Banasser, Maha Faisal Alsayegh
Keyword(s):  
Corporate Governance ◽  
Internal Control ◽  
Audit Committee ◽  
Internal Audit ◽  
Internal Auditors ◽  
External Auditors ◽  
Riyadh City ◽  
Creative Accounting ◽  
Telecommunications Sector

The study aimed to identify the role of accounting mechanisms for corporate governance in reducing creative accounting practices in telecommunications sector companies in Riyadh city. A descriptive analytical approach was followed to conduct the field study. Sample of the study consisted of members of the audit committee, internal auditors, accountants from the surveyed telecommunications’ sector companies, and the external auditors in the audit offices that specialized on auditing the examined sample of companies. Questionnaire was used as a data collection method. Results showed that activating the role of accounting mechanisms for corporate governance can greatly contribute in limiting creative accounting practices. As they are controlling mechanisms that capable of protecting companies, shareholders and stakeholders from any manipulation or misleading information in the financial statements. Further, internal audit plays a major role in limiting creative accounting practices by examining and evaluating the effectiveness of the internal control system. Furthermore, the independence and competence of the external auditor and his commitment to the rules of conduct and ethics of the profession contribute greatly in limiting creative accounting practices in the examined companies. The study recommended the necessity of holding specialized training courses for members of audit committees, internal auditors and external auditors on methods of detecting creative accounting practices to combat and reduce them.

scholarly journals DANA BANTUAN KEUANGAN PARTAI POLITIK DI SURAKARTA, SUDAHKAH TRANSPARAN DAN AKUNTABEL?

Wahana ◽  
2019 ◽  
Vol 22 (2) ◽  
pp. 157-168
Author(s):  
Titik Setyaningsih ◽  
Andi Asrihapsari ◽  
Doddy Setiawan
Keyword(s):  
Focus Group ◽  
Political Parties ◽  
Focus Group Discussion ◽  
Qualitative Method ◽  
Group Discussion ◽  
Financial Assistance ◽  
Financial Report ◽  
External Auditor ◽  
Transparency And Accountability

This study aims to explore transparency and accountability of political parties in Surakarta. This study uses a qualitative method. Data were gathered through focus group discussion. The findings show that political parties do not understand financial report of this entity’s financial assistance under PSAK 45 and they use simple bookkeeping. Political parties’s financial assistance is not audited by external auditor and there are some audit findings. The transparency principle is not achieved because financial report only for internal parties. This study raises one interesting result that political parties need the role of accountant to make their reports more accountable.

scholarly journals The role of the external auditor in corporate governance: The case of companies listed in the NYSE Euronext Lisbon

2019 ◽  
Vol 8 (4) ◽  
pp. 38-51 ◽  
Author(s):  
José Manuel Bernardo Vaz Ferreira
Keyword(s):  
Corporate Governance ◽  
Multiple Regression ◽  
Direct Relationship ◽  
Logistic Models ◽  
Agency Problems ◽  
Securities Market ◽  
External Auditors ◽  
External Auditor ◽  
Economic Crimes

This study investigates the effects of the presence of the external auditor on corporate governance in Portugal, in the way listed companies are managed, based on the verification of compliance with the corporate governance regulations of the Securities Market Commission, as well as the transparency of information and the reduction of agency problems, fraud and economic crimes. By comparing government reports of companies listed on NYSE Euronext Lisbon, during several periods and with surveys conducted in the 1st half of 2013 in Portugal to the external auditors responsible for the majority of the legal certification of accounts of companies during 2007 to 2011, a significant direct relationship in the fulfillment of the recommendations of corporate governance and its verification by the external auditor is concluded. Based on multiple regression and multinomial logistic models, it is concluded that a greater involvement of the ROC in complying with corporate governance recommendations, allows for greater transparency of information and a reduction of agency problems, fraud and economic crimes

Role of Accounting and Audit in the Recent Financial Crisis

2013 ◽  
pp. 91-98
Author(s):  
Alev Dilek Aydin
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Fair Value ◽  
Financial Reports ◽  
Historical Cost ◽  
The Public ◽  
Creative Accounting ◽  
Recent Financial Crisis ◽  
Audit Reports

This study aims to assess the role of accounting and auditing in the recent financial crisis. After each crisis, there have been serious discussions concerning the reasons behind those crises. However, no consensus has yet been achieved until now. In this context, the analysis of the relationships among financial crisis, accounting, and auditing is of utmost importance in better evaluating the structural reasons behind the crisis. There are several points that this chapter aims to analyze to indicate the contributions of accounting and auditing to the recent global financial crisis. These points are: impacts of disregarding the main principles of accounting, the wide use of fair value accounting over cost-based accounting, incorrect and misleading financial and audit reports, applications of creative accounting, and lack of transparency and weaknesses of the auditing process. The debates generally concentrate on the use of fair value (mark-to-market) accounting in the financial reports as opposed to the historical cost method. It should be emphasized that accounting is very important as a key mechanism of market economies, because of its crucial role in the functioning of the markets in accordance with the public interest. The chapter concludes with several suggestions by taking the fact into consideration that accounting and auditing systems should be revised for the better protection of interests of the third parties such as investors, potential investors, and the state.

Fintech in financial reporting and audit for fraud prevention and safeguarding equity investments

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Paulina Roszkowska
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Financial Statement ◽  
Financial Fraud ◽  
Financial Statement Fraud ◽  
Content Type ◽  
Financial Scandals ◽  
External Auditor ◽  
Equity Investments

Purpose The purpose of this paper is to explore the audit-related causes of financial scandals and advice on how emerging technologies can provide solutions thereto. Specifically, this study seeks to look at the facilitators of financial statement fraud and explain specific fintech advancements that contribute to financial information reliability for equity investments. Design/methodology/approach The study uses the case studies of Enron and Arthur Andersen to document the evidence of audit-related issues in historical financial scandals. Then, a comprehensive and interdisciplinary literature review at the intersection of business, accounting and engineering, provides a foundation to propose technology advancements that can solve identified problems in accounting and auditing. Findings The findings show that blockchain, internet of things, smart contracts and artificial intelligence solutions have different functionality and can effectively solve various financial reporting and audit-related problems. Jointly, they have a strong potential to enhance the reliability of the information in financial statements and generally change how companies operate. Practical implications The proposed and explained technology advancements should be of interest to all publicly listed companies and investors, as they can help safeguard equity investments, thus build investors’ trust towards the company. Social implications Aside from implications for capital markets participants, the study findings can materially benefit various stakeholder groups, the broader company environment and the economy. Originality/value This is the first paper that seeks solutions to financial fraud and audit-related financial scandals in technology and not in implementing yet another regulation. Given the recent technology advancements, the study findings provide insights into how the role of an external auditor might evolve in the future.

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