The Effect of Auditors' Ethics on Their Detection of Creative Accounting Practices: A Field Study

Abstract

The current study objects for investigating the effect of audit ethics on auditors' ability to detect the practices of creative accounting. In specific, it investigates the effect of auditor's independency, integrity, objectivity, contingent fees, advertising rights, commission determination, organization form, and name on auditors' ability to detect the practices of creative accounting. A sample consisting of 150 auditors had been selected based on the simple random sampling method among the total population of practicing auditors in Jordan. Simple linear regression method was used in testing the first three hypotheses, based on t-vale and the coefficient of significance, while multiple linear-regression method was used in testing the last hypothesis, based on f-value, and the coefficient of significance. The study finds that all of the above mentioned ethical rules affect auditors' ability to detect the practices of creative accounting. [PUBLICATION ABSTRACT]