Title: The ethicalness of earnings management in the Middle East: a survey of managers and auditors in Jordanian companies

Authors: Talal Al-Hayale, George Lan

Addresses: Odette School of Business, University of Windsor, Windsor, Ontario N9B 3P4, Canada. ' Odette School of Business, University of Windsor, Windsor, Ontario N9B 3P4, Canada

Abstract: This study compares the attitudes of managers with those of external auditors towards common practices and issues of earnings management in Jordan, a Middle Eastern country. A questionnaire survey partially based on the Bruns and Merchant (1989a) investigation of the morality of earnings management was used. Responses were received from 52 general and financial managers and 28 auditing firms. Mann-Whitney U tests showed that the external auditors significantly viewed earnings management practices to be less ethical than the managers did. No significant differences attributable to gender were found. Male and female managers and auditors had similar attitudes towards earnings management.

Keywords: auditors; earnings management; Jordan; managers; ethics; auditing.

DOI: 10.1504/IJAAPE.2005.009593

International Journal of Accounting, Auditing and Performance Evaluation, 2005 Vol.2 No.4, pp.399 - 413

Published online: 02 May 2006 *

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