The Role of Auditing in Detecting Practices of earnings Management and Reporting at Iraqi Stock Exchange

Previous studies in the field of profit management prove two main approaches for such a management. CEOsare able to manage benefits through accruals as well as actual activities manipulation (Hilly et al., 1999). Profit management literature mostly insist on profit management based on accruals....

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Main Authors: Salwan Oujah, Muhammad Reza Abbaszadeh
Format: Article
Language:Arabic
Published: University of Kufa, Faculty of Administration and Economics 2022-01-01
Series:مجلة الغري للعلوم الاقتصادية والادارية
Online Access:https://journal.uokufa.edu.iq/index.php/ghjec/article/view/3248
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author Salwan Oujah
Muhammad Reza Abbaszadeh
author_facet Salwan Oujah
Muhammad Reza Abbaszadeh
author_sort Salwan Oujah
collection DOAJ
description Previous studies in the field of profit management prove two main approaches for such a management. CEOsare able to manage benefits through accruals as well as actual activities manipulation (Hilly et al., 1999). Profit management literature mostly insist on profit management based on accruals. However, quantitative studies regarding actual profit management had been carried out. Actual profit management is accompanied by change in timing or the structure of actual activities. 310 Therefore, the researchers of actual profit management look for detecting abnormal levels of entity’s activities (Legni et al., 2009). CEOs take advantage of two management methods based on accruals and real profit management to manipulate benefit. In the first approach, management is done through manipulating accruals to accounting numbers in accordance with its required goals. In this method, the CEO manages the profit through accelerating income recognition as well as delay in recognition of expenses to present a better performance in the current period. However, the CEO turns to the actual profit management through adopting some operational decisions, i.e. manipulating real activities, reaches the required benefit. Studies such as Hilly and Wellen (1999), Fadenburgh and Tiroul (1995), Dichou and Skinner (2000) and Roichodury (2006) point to approaches such as sales through discount, changes in shipping table, reduction in discretionary spending, for instance expenses of research and development, as well as overproduction as management methods.
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series مجلة الغري للعلوم الاقتصادية والادارية
spelling doaj-art-4bdcafeff47a4ed5849a683d9d2703cb2025-08-20T01:53:29ZaraUniversity of Kufa, Faculty of Administration and Economicsمجلة الغري للعلوم الاقتصادية والادارية3006-19113006-192X2022-01-0116110.36325/ghjec.v16i1.3248The Role of Auditing in Detecting Practices of earnings Management and Reporting at Iraqi Stock ExchangeSalwan OujahMuhammad Reza AbbaszadehPrevious studies in the field of profit management prove two main approaches for such a management. CEOsare able to manage benefits through accruals as well as actual activities manipulation (Hilly et al., 1999). Profit management literature mostly insist on profit management based on accruals. However, quantitative studies regarding actual profit management had been carried out. Actual profit management is accompanied by change in timing or the structure of actual activities. 310 Therefore, the researchers of actual profit management look for detecting abnormal levels of entity’s activities (Legni et al., 2009). CEOs take advantage of two management methods based on accruals and real profit management to manipulate benefit. In the first approach, management is done through manipulating accruals to accounting numbers in accordance with its required goals. In this method, the CEO manages the profit through accelerating income recognition as well as delay in recognition of expenses to present a better performance in the current period. However, the CEO turns to the actual profit management through adopting some operational decisions, i.e. manipulating real activities, reaches the required benefit. Studies such as Hilly and Wellen (1999), Fadenburgh and Tiroul (1995), Dichou and Skinner (2000) and Roichodury (2006) point to approaches such as sales through discount, changes in shipping table, reduction in discretionary spending, for instance expenses of research and development, as well as overproduction as management methods.https://journal.uokufa.edu.iq/index.php/ghjec/article/view/3248
spellingShingle Salwan Oujah
Muhammad Reza Abbaszadeh
The Role of Auditing in Detecting Practices of earnings Management and Reporting at Iraqi Stock Exchange
مجلة الغري للعلوم الاقتصادية والادارية
title The Role of Auditing in Detecting Practices of earnings Management and Reporting at Iraqi Stock Exchange
title_full The Role of Auditing in Detecting Practices of earnings Management and Reporting at Iraqi Stock Exchange
title_fullStr The Role of Auditing in Detecting Practices of earnings Management and Reporting at Iraqi Stock Exchange
title_full_unstemmed The Role of Auditing in Detecting Practices of earnings Management and Reporting at Iraqi Stock Exchange
title_short The Role of Auditing in Detecting Practices of earnings Management and Reporting at Iraqi Stock Exchange
title_sort role of auditing in detecting practices of earnings management and reporting at iraqi stock exchange
url https://journal.uokufa.edu.iq/index.php/ghjec/article/view/3248
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