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The Role of Forensic Accounting in Reducing Earnings Management Practices

· Pages: 2774-2787· Vol. 6, No. 6, (2022)· Published: June 27, 2022
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Abstract

The importance of the research can be summarized through the contribution of forensic accounting in reducing earnings management practices through the use of forensic accounting techniques. Forensic accounting is an important issue in developing accounting and facing earnings management practices. The aim of the research is to determine the methods of forensic accounting that help reduce earnings management practices. And to identify the most important obstacles that limit the application of judicial accountability. The research reached conclusions that forensic accounting has an important role in revealing false financial statements related to taxable profits. Forensic accounting enhances the work of oversight institutions, particularly the Integrity Commission and external audit offices. Forensic accounting helps reduce creative accounting practices by identifying sources of misleading revenues, expenses and amounts disbursed through a post-audit that helps in revealing the real revenues and their timing. Forensic accounting limits creative accounting practices by recognizing true revenue. The absence of standards, legal legislation and approved guidelines regulating the work of a chartered accountant. The lack of interest in the forensic accountant on the part of universities in the educational curricula.

Keywords

forensic accountingearnings management.

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Author details
Professor Jalil Ibrahim Salih, Dr. Emad Abdel Sattar Al Mashkoor, Sherihan Kazem Shanishel Al Ramahi
Southern Technical University, Technical Institute of Basra, Iraq.
✉ Corresponding Author
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