Impact Of Applying Governance On Reducing Creative Accounting Practice And Enhancing Published Accounting Information Quality

Abstract

The study aimed to clarify the role of governance on reducing creative accounting practices and enhancing the quality of published accounting information. The problem of the study was represented in improving organizations’ image among the stakeholders and external users of the accounting information through the so-called creative accounting methods. Three hypotheses were set, a questionnaire was designed and data was collected from respondents. The study concluded that there is a statistically significant role between applying the principles of governance and reducing the practices of creating accounting methods by a multi-correlation coefficient of (0.000), and also between applying the principles of governance and enhancing the quality of published accounting information by a multi-correlation coefficient of (0.003). The study recommended that governance should be applied through consideration of the rules and principles included within the primary accounting standards in order to achieve the quality of accounting information and an independent external auditor should be appointed to be responsible for checking final financial information with accordance to financial auditing standards.