The role of the external auditor in reducing the effects of creative accounting on the credibility of financial information issued by Libyan companies

Abstract

The study aims to determine the role of Account auditors to control the procedure of a creative accounting and its effects on the reliability of accounting data . To achieve this objective, a questionnaire was designed, and distributed to the study population , which consist of accounting and auditing offices in the municipalities of Tripoli , Alkumes and Zliten. Sixty valid questionnaires out of the distributed 70 copies were returned, analysed using Spss. The study concludes that external auditors showed great commitment to apply the necessary procedures and tests to uncover the effects and means of creative accounting, the study also reveals that abiding auditing standards and principles of professional conduct helps external auditors , to some extent , reduce uncover the practices of creative accounting . Finally the study recommends raising awareness among accounting practicners and the practices of creative accounting in order to show its risks , which consequently leads to adequately controlling it.