The Role Of The Judicial Auditor To Reduce The Practices Of Creative Accounting On The Financial Statements In Kuwaiti Islamic Banks: دور المدقق القضائي في الحد من ممارسات المحاسبة الإبداعية بالقوائم المالية في المصارف الإسلامية الكويتية

Ahmed M Gh  Al-Shehri; Ahmad Sufian  Che Abdullah; Mohd Abd Wahab Fatoni  Mohd Balwi

Authors

Ahmed M Gh Al-Shehri PhD Student
Ahmad Sufian Che Abdullah Senior Lecturer
Mohd Abd Wahab Fatoni Mohd Balwi Senior Lecturer

Keywords:

Judicial, Auditor, Accounting, Financial, Banks

Abstract

The aim of this research is to identify the role of the judicial auditor to reduce creative accounting practices in financial statements in Kuwaiti Islamic Banks. The research is considered field research in which the researcher followed the descriptive and analytical method. The research community included all Kuwaiti Islamic Banks, while the sample consisted of (75) respondent from financial advisors, members of audit committees, internal auditors and financial managers working in these banks. The research concluded that there is a role for the judicial auditor in limiting creative accounting practices in the financial statements issued by Kuwaiti Islamic Banks. The responses of the study sample were high. It was found that the judicial auditor contributes to making the accounting information suitable for different parties and limits creative accounting practices. The research recommended the emphasis for Kuwaiti Islamic Banks to adhere to the requirements of practicing judicial auditing for their role in limiting creative accounting practices in the financial statements issued by them, through the application of policies and procedures for the independence of the judicial auditor to deal with legal issues.

ملخص البحث

هدف هذا البحث إلى التعرف على دور المدقق القضائي في الحد من ممارسات المحاسبة الإبداعية بالقوائم المالية في المصارف الإسلامية الكويتية، يعتبر البحث من الأبحاث الميدانية والتي اتبع فيها الباحث الأسلوب الوصفي التحليلي، شمل مجتمع البحث جميع المصارف الإسلامية الكويتية، أما العينة فتكونت من (75) مستجيب من المستشارين الماليين وأعضاء لجان التدقيق، ومدققي الحسابات الداخليين والمديرين الماليين العاملين في هذه البنوك. وتوصل البحث إلى انه يوجد دور للمدقق القضائي في الحد من ممارسات المحاسبة الإبداعية في القوائم المالية الصادرة عن المصارف الإسلامية الكويتية. وأن استجابات عينة الدراسة كانت مرتفعة، وقد تبين أن المدقق القضائي يسهم في جعل المعلومات المحاسبية ملاءمة للأطراف المختلفة ويحد من ممارسات المحاسبة الإبداعية. وأوصى البحث بالتأكيد على أهمية التزام المصارف الإسلامية الكويتية بمتطلبات ممارسة التدقيق القضائي لدورها في الحد من ممارسات المحاسبة الإبداعية في القوائم المالية الصادرة عنها، وذلك من خلال تطبيق السياسات والإجراءات الخاصة بعنصر استقلالية المدقق القضائي للتعامل مع القضايا القانونية.

Downloads

Download data is not yet available.

Author Biographies

Ahmed M Gh Al-Shehri, PhD Student

Department of Syariah and Management, University of Malaya.

Ahmad Sufian Che Abdullah, Senior Lecturer

Department of Syariah and Management, University of Malaya

Mohd Abd Wahab Fatoni Mohd Balwi, Senior Lecturer

Department of Syariah and Management, University of Malaya

References

Abu Nassar, Muhammad, Wa-Al-Khalayilah, Mahmood. 2017. Mabadi’ Al-Muhasabah: Al-Usul Al-‘Ilmiyyah Wa Al-‘Amaliyyah. ‘Amman: Dar Wa’il Lil-Nashr Wa Al-Tiba‘ah Wa Al-Tawzi‘.

Belkaoui A. R. 2019. Accounting Theory. London: Thomson Learning.

Bressler, Linda. 2010. The Role of Forensic Accountants In Fraud Investigations: Importance of Attorney and Judges Perceptions. Journal of Finance and Accountancy, 9(1): 1-9.

Gaetan, B., & Stolowy H. 2013. Accounts Manipulation: A Literature Review and Proposed Conceptual Framework. Review of Accounting and Finance, 3(1): 51-72.

Jamil, Rafiyy Nazar. 2012. Al-Itar Al-Mafahimiyy Li al-Muhasabah Al-Qada‘iyyah Wa Mutatallabat Tatbiqiha Fi Al-Bi’at Al-Maliyat Al-‘Iraqiyyah. Al-Mosul, Al-‘Iraq: Jami‘ah Al-Mosul, Risalah Majister, Kulliyyah Al-Idarah Wa Al-Iqtisad.

Khalifah, Muhammad. 2013. Itar Muqtarih Li Tafsir Suluk Al-Wahdat Al-Iqtisadiyah Fi Al-Ta’thir ‘Ala Al-Qawa’im Al-Maliyyah: Dirasah Maydaniyyah. Jami‘ah ‘Ayn Shams, Majallah Al-Fikr Al-Muhasabiyy, Kulliyyah Al-Tijarah, 1(2):123-130.

Khalil, Muhammad Ahmad Ibrahim. 2017. Tatwir Dawr Al-Muraja‘ah Al-Qada’iyyah Li-Muwajahah Al-Ghashsh Wa Al-Ihtiyal Wa Al-Fasad Al-Maliyy Bi Munazzamat Al-A‘mal Wa Tahqiq Misdaqiyat Al-Ma‘lumat Al-Muhasabiyyah Dirasah Ikhtibariyyah. Majallah Al-Muhasabah Wa Al-Muraja‘ah, 1(3):197-236.

Matarenh, Zeyad. 2015. Design Ethics of the Accounting Profession to Reduce the Effects of Creative Accounting on the Reliability of Financial Statements Issued by the Jordanian Public Shareholding Companies. Lebanon: Jinan University, PhD Theses.

Muhammad, Nawal ‘Aliyy Al-Imam. 2018. Dawr Al-Muraja‘ah Al-Qada’iyyah Fi Iktishaf Al-Ghish Bi-Manzimat Al-A‘mal: Dirasah Maydaniyyah ‘Ala Diwan Al-Maraji‘ Al-Qawmiyy Bi Wilayat Al-Khurtum. Al-Sudan: Jami‘ah Al-Nilayn, Risalah Majistir, Qism Al-Muhasabah.

Nkama, N. & Onoh, J. O. 2016. Forensic Accounting and Board Performance in the Nigerian Banking Industry. Journal of Accounting and Financial Management, 2(2): 29-41.

Parfet, W, 2015. Commentary: Accounting Subjectivity and Earnings Management: A Preparer Perspective. Accounting Horizons, 14(4): 481-488.

Phillips J., & Pincus M., & Rego S. 2013. Earning Management: New Evidence Based on Deferred Tax Expense. The Accounting Review, 78(2): 491-521.

Popoola, Oluwatoyin Muse Johnson, Ayoib Che Ahmad & Rose Shamsiah Samsudin. 2014. Forensic Accounting Knowledge and Mindset on Task Performance Fraud Risk Assessment. International Journal of Business and Management, 9(9): 119- 134.

Rodgers Paul. 2017. Financial Analysis. USA: Managerial Chartered Institute of Management Accountants.

Al-Sisiyy, Najwa. 2016. Dawr Al-Muhasabah Al-Qada’iyyah Fi Al-Hadd Min Zahirah Al-Ghashsh Fi Al-Qawa’im Al-Maliyyah. Al-Majallat Al-‘Ilmiyyah Li al-Iqtisad Wa Al-Tijarah, Al-‘Adad Al-Awwal, Safhah 33-88.

Stanbury, J., & Paley-Menzies, C. 2010. Forensic Futurama: Why Forensic Accounting Is Evolving. Retrieved from http://www.aicpa.org.

Al-Takritiyy, ‘Aliyy Fu’ad. 2019. Athar Al-Muhasabat Al-Ibda‘iyyah ‘Ala Al-Tahrib Al-Daribiyy Min Wijhah Nazar Al-Hay’at Al-‘Ammah Li al-Dara’ib. Al-Mafraq: Al-Urdun: Jami‘ah Ali Al-Bayt, Risalah Majistir, Qism Al-Muhasabah, Kulliyyat Al-Iqtisad Wa Al-‘Ulum Al-Idariyyah.