Assessing the impact of creative accounting on the duties of external auditors in Libya: An empirical investigation

Authors

  • Omar Aboalatati Miftah Libyan Authority for Scientific Research, Tripoli, POB: 80045, Libya
  • Yaseen Miftah Maeyouf Libyan Authority for Scientific Research, Tripoli, POB: 80045, Libya
  • Saida Slimani University of Constantine 2, Algeria

Keywords:

External Audit, External Auditor, Financial Statements, Creative Accounting

Abstract

Purpose: This study aims to explore the role of external auditors in mitigating creative accounting practices, which are often adopted by management to manipulate reported earnings. Importance/Value: The research highlights the importance of external audit functions in enhancing the reliability of financial reporting by reducing the scope for creative accounting, thereby fostering trust among financial statement users. Methodology/Approach: A quantitative approach was adopted. A total of 95 questionnaires were distributed to a purposive sample, out of which 92 were deemed valid for analysis. Data were analyzed using the Statistical Package for the Social Sciences (SPSS) and Microsoft Excel. Findings: The results reveal that external auditors play a significant role in limiting creative accounting practices by ensuring adherence to professional ethics and maintaining the required level of professional competence. Additionally, their presence enhances confidence in financial statements among users. Conclusion: The study concludes that external auditors are instrumental in curbing earnings manipulation practices, provided they uphold professional standards and exercise due diligence in fulfilling their responsibilities. Recommendations: The study recommends reinforcing the ethical and professional frameworks governing audit practices, enhancing auditor training programs, and promoting stricter oversight mechanisms to prevent creative accounting behaviors.

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Published

2025-05-06

How to Cite

Aboalatati Miftah, O., Miftah Maeyouf, Y., & Slimani, S. (2025). Assessing the impact of creative accounting on the duties of external auditors in Libya: An empirical investigation. International Journal of Economic Perspectives, 19(5), 1818–1833. Retrieved from https://ijeponline.org/index.php/journal/article/view/1003

Issue

Vol. 19 No. 5 (2025): Online First

Section

Peer Review Articles
Copyright & Licensing

Copyright (c) 2025 Saida Slimani; Omar Aboalatati Miftah, Yaseen Miftah Maeyouf

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