THE ROLE OF CORPORATE GOVERNANCE IN REDUCING THE NEGATIVE IMPACT OF CREATIVE ACCOUNTINGON THE RELIABILITY OF THE INTERIM FINANCIAL INFORMATION

Abstract

The importance of the study stems from the importance of the topic of governance Corporate and creative accounting and reliability of the interim financial information as one of the important and relatively recent topics., especially in relating of the companies’ administrations using creative accounting methods to show the result of the activity of those companies according to what they were looking forward to as short-term goals, even if it was on account of other departments, which led to the financial crisis as a result of the collapse the bankruptcy of some of the world's largest companies. So, this study dealt with the concept of creative accounting, The factors that contributed to its emergence, and motives, the most important methods used in the financial statements and the most important actions to detect accounting creativity and limiting it, as corporate governance came at the forefront of these measures, after the Iraqi reality has been highlighted. The study concluded a set of results, the most important on the existence of a role of corporate governance in limitation the negative affect of creative accounting on the reliability of the interim financial statements, Iraq has not yet committed to applying principles of governance corporate despite its role in limitation creative accounting practices.
The study came out with a set of recommendations, the most important of the recommendation to update and develop regulations and laws to keep step with the requirements of governance, a developed guide includes the most important principles that must be adhered to and stipulates penalties in case of violation. It also recommended conducting studies related to strengthening the ethical aspects of accountants and auditors to reduce the manipulation and practices of creative accounting and emphasizing on role of company’s boards of directors, also should consider when forming members of the audit committees, they have practical experience and technical qualifications in the field of accounting and auditing.