The Impact of Accounting Failure on the Quality of Financial Statements Prepared by For-Profit Economic Units A Survey of the Opinions of a Sample of Accounting Academics in Public Universities, and Employees of Accounting and Auditing Offices in Dohuk Governorate

Abstract

    This research aims to demonstrate the impact of accounting failure on the quality of financial statements prepared by for-profit economic units through the opinions of a sample of accounting academics in public universities, and employees of accounting and auditing offices in Dohuk Governorate. The research problem enables us to explain the impact of accounting failure on the quality of financial statements. To achieve this purpose, the research problem was formulated from the following question: Does accounting failure have an impact on the quality of financial statements? Data collection was done by using a questionnaire distributed to a sample of 40 participants of which (32) were returned with the response rate of 80%. The analysis of the data was done by using descriptive statistics and correlation analysis, as well as simple linear regression techniques using the Statistical Analysis Program (SPSS).  The results of the research showed that there is a strong relationship between accounting failure and the quality of the financial statements with regard to the application of accounting standards, policies and rules, the qualitative characteristics of accounting information, the competencies of the accounting personnel, commitment to professional and ethical principles and other points indicated by the research. The results further showed that accounting failure has an impact on the quality of the financial statements of the for- profit economic units. The research came up with a number of recommendations, the most important of which are the necessity of full compliance with the accounting standards followed internationally or locally, the possibility of providing assistance to the economic units suffering from accounting failure by experienced and expert accountants, the need for the economic units to review and evaluate the accounting policies and rules applied by them, in addition to the importance of improving internal audit procedures and strengthening its role to ensure the effective evaluation of financial and accounting operations and the early detection  and treatment of errors by providing transparency in the financial statements.