(The impact of joint audits on reducing earnings management practices ( A case study of Al Rajhi Bank for the year 2025

Abstract

This study aimed to define the concept of joint auditing and earnings management practices, and to demonstrate the extent to which joint auditing can mitigate earnings management practices. The study's problem lies in the tendency of many company managements to embellish financial data in an effort to improve their financial position and achieve self-serving objectives. This occurs despite the diversity of accounting alternatives available for preparing financial statements, which negatively impacts the credibility of these statements. The study employed a descriptive, analytical, inferential, deductive, and historical methodology. Among the most important findings is that most countries worldwide regulate joint auditing according to regulations and laws, with the exception of France, India, and Singapore, which are the only countries that have issued specific standards for its application. Most countries apply the joint audit approach on a voluntary basis. Researchers agree that there are two main motivations for earnings management practices: the first relates to achieving self-serving benefits for management, and the second relates to influencing users of accounting information. The study recommended several measures, including activating joint auditing and enacting laws and regulations that enable its implementation; issuing legislation that obligates management to adhere to professional ethics and imposes deterrent penalties for earnings management practices; and strengthening audit committee mechanisms and corporate governance to enhance their effectiveness in internal and external oversight.