International Journal of Entrepreneurship (Print ISSN: 1099-9264; Online ISSN: 1939-4675)


The Moderating Effect of the Audit Committees Role in the Relationship between Corporate Governance and Limiting of Practices Creative Accounting, A Field Study on the Jordanian Industrial Companies

Author(s): Walid Omar Owais

 Creative accounting is one of the biggest challenges facing the ethical framework of accounting, because of the accounting information that lacks the elements of control and transparency, and therefore the search for reliable and appropriate information for decision-making has become a real challenge that can be addressed through of corporate governance and audit committees. The main objective of the research is identifying the influence of corporate governance in limiting the practices of creative accounting by the existence of audit committees as a Moderating variable, a field study was conducted on the Jordanian industrial companies that are listed on the Stock Exchange of Amman, Jordan. To achieve the objectives of the study, the researcher developed a questionnaire and distributed among the study population consisting of financial managers and accountants using systematic random sampling. Data were collected and analyzed by relying on the Statistical Package for Social Sciences (SPSS) software. The study found that Corporate Governance in effects the Limiting of Practices Creative Accounting. And audit committees moderates the relationship that exists between Corporate Governance and Limiting of Practices Creative Accounting. In light of the results, hopefully In Companies should be motivated to put in place an effective corporate governance mechanism they will curtail creative accounting practices. In particular, the independence of the audit committee should be sacrosanct and compelled among the listed companies in Jordan.

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