This research explores the link between audit quality and the use of creative accounting within organizations. Creative accounting, which involves manipulating accounting rules and principles to distort financial reports, presents serious threats to stakeholders and undermines the credibility of financial disclosures. High-quality auditing is essential for identifying and addressing such practices, emphasizing the need to examine how audit quality influences creative accounting. Based on data collected from 131 audit firm responses in Bahrain, the study found a significant positive correlation between the two variables. These outcomes support both theoretical assumptions and previous empirical studies, underscoring the essential function of effective auditing in ensuring transparency and accuracy in financial reporting. Enhancing audit quality—through greater auditor independence, technical competence, and thorough audit practices—can help organizations limit creative accounting behavior and strengthen the dependability of their financial statements. The study concludes by recommending future research directions, such as including additional explanatory variables, exploring mediators and moderators, conducting longitudinal or international studies, using mixed-method approaches, and focusing on specific aspects of audit quality. These steps would deepen the understanding of the audit–creative accounting relationship and guide policy and practice improvements in this critical field.

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Empirical Evidence on the Relationship Between Audit Quality and Creative Accounting Preventing in Bahrain

  • Ahmad Yahia Mustafa Al Astal,
  • Raed Alnimer,
  • Bashar Yaser Almansour,
  • Laith Yousef Bani Hani,
  • Husni Hasan Husni Samara,
  • Adnan Jawabri

摘要

This research explores the link between audit quality and the use of creative accounting within organizations. Creative accounting, which involves manipulating accounting rules and principles to distort financial reports, presents serious threats to stakeholders and undermines the credibility of financial disclosures. High-quality auditing is essential for identifying and addressing such practices, emphasizing the need to examine how audit quality influences creative accounting. Based on data collected from 131 audit firm responses in Bahrain, the study found a significant positive correlation between the two variables. These outcomes support both theoretical assumptions and previous empirical studies, underscoring the essential function of effective auditing in ensuring transparency and accuracy in financial reporting. Enhancing audit quality—through greater auditor independence, technical competence, and thorough audit practices—can help organizations limit creative accounting behavior and strengthen the dependability of their financial statements. The study concludes by recommending future research directions, such as including additional explanatory variables, exploring mediators and moderators, conducting longitudinal or international studies, using mixed-method approaches, and focusing on specific aspects of audit quality. These steps would deepen the understanding of the audit–creative accounting relationship and guide policy and practice improvements in this critical field.