54
magazine
ALRAQABA
Articles
Sources:
− IFAC. «Framework for Audit Quality.»
. N.p., n.d.
Web. July 2017. <
.
− Piot, Charles, and Rémi Janin. «Audit Quality and Earnings Management
in France.» SSRN Electronic Journal
− Naser, K. and M. Pendlebury: 1992, ‘A Note on the use of Creative
−
-
Quality-Outline.pdfAccounting’, British Accounting Review 24, p 4 .
information and passion for knowledge as ac-
counting is a science that addresses different
and many changes on a daily basis. The audi-
tor shall have enough knowledge relating to
the mentioned information to perform the as-
signed missions in a correct manner. Fight-
ing and restricting innovative accounting is not
easy and yet complex, nevertheless it is pos-
sible for the auditor to strive and educate him-
self, and use the available methods to conduct
the required reviews so that he can detect and
try to restrict those practices.
Researches have categorized auditors into
two types: high quality auditors and low qual-
ity auditors, they have assured that auditors
of high quality are much more capable of de-
tecting cases of accounting fraud and ma-
nipulation. Moreover, such auditors have the
audacity and ability to detect such cases in
the audit report. The aforementioned clearly
explains the failure of the institutions lacking
high-quality auditors, and more likely leads to
their blind exposure to innovative accounting.
Innovative accounting emerged in conse-
quences of the financial crises and difficulties
faced by the companies, which have led to
cases of manipulation by the professional ac-
countants. As well as to the exposure to sub-
stantial pressure from the top management
regarding the enhancement of the financial
data through the inflation of the profits, and the
improvement of the institution`s financial posi-
tion. The accountant exercising the innovative
accounting is a highly professional accoun-
tant, equipped with knowledge, abilities and
familiarity with the accounting rules and pro-
visions. Such features are utilized in consid-
eration of the financial statements figures and
achievement of institutional and personal ob-
jectives. Therefore, higher – qualified auditors
shall work against such professional accoun-
tants in order to provide the required reason-
able assurance that financial reports are free
of manipulation and any possible deviations.
Nonetheless, innovative accounting threatens
the audit profession, as the market requires
high-qualified auditors in order to maintain the
auditors’ reputation and detect fraud and ma-
nipulations before they occur. Consequently,
institutions strives to train their auditors and
make sure they apply for the professional
tests to obtain the professional certifications
with the aim of increasing their knowledge of
the accounting laws and provisions, as well as
to enhance their performance in detecting the
various methods of innovative accounting
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