Search Results for accounting-information-quality
Abstract
Digital markets have undergone significant transformations, creating opportunities for growth but also presenting challenges related to the reliability of information and the emergence of "information manipulation" practices that negatively impact investors' decisions. This research aims to analyze the role of financial accounting in mitigating this phenomenon by highlighting the relationship between the quality of accounting information and the level of transparency in digital markets. The study adopted a descriptive-analytical approach to review previous literature, alongside a survey method through a questionnaire distributed to a sample of 112 individuals, including accountants, auditors, and investors. The research focused on specialized tools and techniques in digital financial accounting, such as the implementation of International Financial Reporting Standards (IFRS), which aim to standardize and regulate financial disclosure globally. The study also addressed electronic accounting information systems, relying on cloud-based software like QuickBooks and Xero, which help improve financial transparency and facilitate precise tracking of financial transactions. Additionally, the study emphasized the role of external independent auditing, which contributes to ensuring the credibility of financial data and reducing manipulation, as well as the importance of corporate governance through the application of strict rules to ensure transparent financial disclosure, thereby enhancing trust in digital markets. The results revealed a noticeable prevalence of information manipulation in digital markets, such as inflated indicators and exaggerated advertisements. The study also found a statistically significant inverse relationship between the quality of accounting information and information manipulation, where the application of international standards, electronic accounting systems, external auditing, and corporate governance significantly contribute to reducing manipulation and enhancing the reliability of information.
Abstract
This study aimed to examine the impact of internal auditing on the transparency of financial reports in companies listed on the Baghdad Stock Exchange. The study sought to identify the nature of the relationship between the effectiveness of internal auditing and financial reporting transparency, measure the effect of internal audit independence on the credibility of financial information, and determine its role in reducing accounting errors and financial manipulation. The study adopted a descriptive-analytical approach and used a questionnaire as the primary tool for data collection. The sample consisted of employees working in auditing, accounting, administrative departments, and other stakeholders concerned with financial reporting. A total of 259 valid questionnaires were collected and analysed. Appropriate statistical methods, including the Chi-Square test, were employed to evaluate the study hypotheses. The findings revealed a statistically significant relationship between internal auditing and the transparency of financial reports. The results also indicated that the independence of internal auditors, their direct reporting relationship with the board of directors, and their unrestricted access to financial records and information significantly enhance the credibility and transparency of financial reporting. Furthermore, the study confirmed that internal auditing plays a significant role in reducing accounting errors and financial manipulation, improving the quality of financial disclosure, and supporting management in making sound financial decisions. The study concluded that internal auditing is an effective control and managerial tool that contributes to strengthening transparency, accountability, and the quality of financial reporting in companies listed on the Baghdad Stock Exchange. The study recommends enhancing the independence of internal audit units, providing adequate support and resources, adhering to international professional standards, and continuously developing the competencies of internal auditors to increase confidence in financial reports and improve the investment environment.