Examining Financial Performance Moderating Factor in The Relationship Between New Generation Auditing and Creative Accounting

Abdelmoneim, Zakia

doi:10.21608/sjsc.2024.268681.1421

Examining Financial Performance Moderating Factor in The Relationship Between New Generation Auditing and Creative Accounting

نوع المستند : المقالة الأصلية

المؤلف

zakia Abdelmoneim

October university for modern sciences and arts MSA جامعة اكتوبر للعلوم الحديثة والاداب

10.21608/sjsc.2024.268681.1421

المستخلص

Currently, audit firms are searching digitalized tools to refine their internal procedures. Along with digital era, undesirable practices such as creative accounting has emerged from the market pressure to meet the shareholders expectations. This study aims at studying the impact of new generation auditing on creative accounting practices taking the effect of the moderator factor of firm financial performance. The new generation auditing is measured by audit digitalization and audit quality. Creative accounting is measured by non-discretionary accruals. The sample consists of 40 listed non-financial listed companies in the Egyptian stock market. The time pe-riod includes 4 years from 2018 to 2021. The results find that digital auditing increase the crea-tive accounting practices although it is supposed to provide more accurate and reliable infor-mation through improving financial reporting quality. These results indicate that digital audit-ing is not fully applied in the Egyptian companies by the big four firms and accordingly results could not find any relationship between audit quality and creative accounting. Results find firm performance has no moderating effect; therefore, there is a direct relationship between creative accounting and new generation audit. It is recommended for the audit firms to fully adapt new generation auditing in the Egyptian market.

الكلمات الرئيسية