The Impact of Governance Accounting Mechanisms on the Lemitation of Creative Accounting Practices, From Viewpoints of Public Industrial Shareholding Companies in Jordan and the External Auditors

Talal Souliman Jrairah, Suleiman Hussien Al-Beshtawi, Hamdan MohD Al –Hiyasat

Abstract


The study aimed to demonstrate the impact of the accounting mechanisms for governance to reduce the negative effects of the practices and methods of creative accounting in Public Industrial Shareholding Companies in Jordan. The questionnaire was prepared and distributed to the community and my sample study consisting of Public Industrial Shareholding Companies in Jordan and the External Auditors. Where the community (57) companies were selected sample of (50) companies of the first sample and distributed to members the sample (6) qustioneers on each company and the number (300) qustioneers of them recovered (290) qustioneers , found of them (282) qustioneers to identify valid for statistical analysis. The second community and sample (354) from an external auditors, targeted sample from (200) external auditors distributed the questionnaires, and of recovered them (154) questionnaires, found (144) questionnaires for identifying valid statistical analysis. The questionnaires analysis by statistical methods: cronbach alpha, Pearson correlation coefficient, spearman- brown formula, multiple and simple linear regression analysis, stepwise multiple regression analysis, measures of descriptive statistics frequencies, percentages and averages and standard deviations. The study concluded that the adoption of corporate governance accounting mechanisms will contribute significantly to the disclosure of creative accounting practices, which will positively reflect on the quality of financial reporting and the effectiveness of the monitoring process, and this is achieved provided to overcome some of the shortcomings outlined by the study of some of these mechanisms. It is the study's recommendations to strengthen the accounting mechanisms for the governance of companies urged to apply, because this proposed role in increasing transparency and disclosure, which helps minimize the creative accounting, in addition to the importance of coordination between the internal audit and the Board of Directors and the external audit for risk management and control them.

Keywords


Accounting Mechanisms of Governance (Accounting and Auditing Standards, Internal Audit, Audit Committees and External Audit), Creative Accounting Practices

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