The role of external auditing in reducing creative cost practical in agricultural businesses

Abstract

The collapse of the huge international companies around the
world increased the interest of provision of appropriate
mechanisms which reduce practices that lead to
manipulation in financial reports. Most of the research
report that these changes in financial statements which are
practiced by the administrations of these companies and
according to their desires, are behind their companies’
sudden collapses, and that is what called the creative cost
accounting. A quantitative research method used to measure
the current study, moreover, 94 auditors participated in this
study. The researcher employed a simple regression analysis
to measure the developed three research hypotheses. The
findings revealed that the highest value was found to be for
first research hypothesis which stated that (There is
statistically significant relationship between the general
standards of external auditing and creative cost accounting
practices in agricultural businesses), moreover the lowest
value was found to be for second research hypothesis which
stated that (There is statistically significant relationship
between the general standards of external auditing and
creative cost accounting practices in agricultural businesses)
as for third hypothesis was found to be moderate which
stated that (There is statistically significant relationship
between fieldwork standards for external auditing and
creative cost accounting practices in agricultural businesses).

However, the findings demonstrated that the
general standards of external auditing have the most
effective role in reducing creative cost accounting practices
in agricultural businesses.