The Impact of the Accounting Information System in Reducing the Negative Practices of Creative Accounting

Abstract

Accounting information systems play a fundamental role in reducing the negative practices of creative accounting by ensuring transparency and accuracy in financial reporting and minimizing opportunities for manipulating figures. Through process automation, the application of accounting standards, and precise financial performance monitoring, these systems help create an accurate and secure accounting environment that contributes to improved decision-making and the avoidance of unethical practices. While creative accounting may offer short-term solutions in some cases, it can carry significant risks in the long term. It is crucial for companies to adhere to strict accounting standards to ensure trust in financial reports while maintaining a transparent and credible accounting environment. Therefore, this study aimed to explore the impact of the accounting information system in reducing the negative practices of creative accounting in industrial companies listed on the Amman Stock Exchange, totaling (33) companies. The study found a negative impact (for human resources and material resources) and a positive impact (for laws and regulations) in reducing the negative practices of creative accounting in industrial companies listed on the Amman Stock Exchange. Based on the study's results, several recommendations were provided, the most important of which are increasing investment in human resources and enhancing compliance with laws and regulations related to accounting, financial reporting, and transparency in companies.