The Impact of Effective Internal Control System in Preventing Management Practices of Earnings


Abstract in English

This search aims to identify management practices of earnings and to indicate whether internal control system effectively contributes to the reduction of such practices, to achieve the goal the researcher follows inductive and deductive approaches and 160 copies of a questionnaire were distributed to two samples of professionals and academics. Using statistical tools and techniques analysis (arithmetic mean and standard deviation and T-test) and statistical package (SPSS) we found out that there was a coefficient relationship between dependent variable – internal control system – and independent variable - management practices of earnings. The more efficient the internal control system is the more limited is earnings management.

References used

(Martin J. Coe, (2005), Fu Lfilling the Requirements of Section 404, Journal of Accounting, (http:// www.aicpa.org/ puds/ jafa/ mar 2005/ coe.htm
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Sanjaya P.S.; Young L., (2012), Voluntary Disclosure and Earnings Management at Bank Companies Listed in Indonesia Stock Exchange, China-USA Business Review, Vol.11, No.3, P.P. 368-374

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