The Role of Audit Committees in Reducing Creative Accounting Practices

Abstract

The research aims to shed light on the role of audit committees in reducing creative accounting practices. To achieve this goal, the research relied on the descriptive analytical approach by referring to the literature and previous studies related to the research topic and designing a questionnaire that was distributed to a group of accounting experts from auditors, accountants and faculty members in the accounting department. These questionnaires were subjected to analysis using statistical analysis methods according to the statistical program (SPSS). The research reached several results, the most important of which is that there is a role for audit committees in reducing creative accounting practices. This is evident through their supervisory and oversight role and their responsibilities in reducing the risk of creative accounting practices and the activities they practice to perform their functions. The research concluded with several recommendations, the most important of which is the need to activate audit committees for their role in reducing manipulations and creative accounting practices, and to hold specialized training courses in the field of creative accounting for audit committees so that they become able to practice procedures and methods that limit the practice of creative accounting.