External Auditor's Procedures in Reducing Creative Accounting Practices - Exploratory Study

Abstract

The main purpose of the research is to identify the procedures used by the external auditor to detect or limit creative accounting practices in the financial statements. To achieve this objective, the descriptive analytical method was used by using the survey form to present the opinion of the research sample in the most important of these procedures. Accounting practices are based on the expertise and skills of accountants through the use of their knowledge of accounting rules and laws in order to manipulate the figures recorded in the financial statements, and the external auditor's understanding of the importance of the procedures used to audit the financial statements to reduce and limit the creative accounting practices. In light of the above, the research recommended the external auditor's commitment to professional care when auditing the accounts of economic units, and the interest in auditing all elements of the financial statements to identify the creative accounting practices that are likely to be applied in these lists, And the intensification of efforts by the professional bodies (the Board of Accounting and Auditing Standards, the Federal Audit Bureau, the Iraqi Accountants and Auditors Association) to establish controls to reduce creative accounting practices, and in line with the business environment and the imposition of financial and moral sanctions on the economic units that practice these methods.