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Financial Risk and Management Reviews

June 2020, Volume 6, 1, pp 22-39

The Relationship between Creative Accounting Risks and Auditing Risks from the Perspective of External Auditors in Saudi Arabia

Wejdan Hassan M. Ghamri

Wejdan Hassan M. Ghamri 1

  1. Lecturer in Accounting, College of Business, University of Jeddah, Saudi Arabia. 1

on Google Scholar
on PubMed

Pages: 22-39

DOI: 10.18488/journal.89.2020.61.22.39

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Article History:

Received: 14 February, 2020
Revised: 17 March, 2020
Accepted: 20 April, 2020
Published: 12 May, 2020


The present study aimed to identify the relationship between creative accounting risks and auditing risks from the perspective of external auditors in Saudi Arabia. The sample comprised licensed auditors who serve in Saudi statutory audit offices. The outcomes showed that external auditors were aware of creative accounting risks. In addition, their professional technical factors, such as professionalism, commitment to training programs and continuing education, mentorship, considering professional standards in auditing, good planning for external auditing, their supervision of auditing teamwork, and auditing fees, enormously helped identify creative auditing practices. There were no statistically significant differences in the external auditors' estimates of the effect of creative accounting risk on auditing risks according to the variables of (academic qualification, professional qualification, occupation, and experience). No statistically significant differences were found in the external auditors' estimates of the external auditor's responsibility to detect creative accounting practices according to these variables. The research recommends giving concern to the concept of creative accounting risks, and set the standards and procedures that the auditor must follow to address these practices because of their negative effects on the reliability of the financial statements.
Contribution/ Originality
This study was the first in Saudi Arabia to identify the external auditors' views on the impact of creative accounting risks on auditing. The findings will encourage statutory audit offices to consider detecting creative accounting practices, and thus confidence in financial reports is promoted.


Creative accounting, External auditors, Auditing risks, Saudi Arabia.


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This study received no specific financial support.

Competing Interests:

The author declares that there are no conflicts of interests regarding the publication of this paper.


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