AL-Qadisiyah Journal For Administrative and Economic sciences

"The Role of External Auditing in Reducing Hidden Accounting Practices: The Mediating Role of Predictive Analytics Technology" (Field Study: Opinions of a Sample of Employees at the Federal Board of Supreme Audit

Authors

Mohammed Jumaah Kareem
Qasim Mohammed Abdullah Al-Baaj

University of Al-Qadisiyah

https://doi.org/10.33916/qjae.2025.04192207
Abstract
This research aims to clarify the role of external auditing in reducing hidden accounting practices by integrating predictive analytics techniques. It analyzes the effectiveness of external auditing in detecting and mitigating such practices within Iraqi institutions. The study adopts a descriptive (deductive) approach to define the nature of the variables and their relationships, alongside an applied (inductive) method to evaluate financial reports from commercial banks and Iraq Stock Exchange bulletins. Inferential statistical methods were used to test the hypotheses through SPSS (version 16) and AMOS software. Due to the specialized nature of the topic, a purposive sampling method was adopted. The research sample consisted of employees from the Federal Financial Supervision Bureau in Al-Muthanna and Al-Qadisiyyah governorates, representing part of Iraq’s federal oversight system. A total of 70 questionnaires were distributed across both governorates in 2025, targeting professionals directly involved in external auditing. The findings revealed a positive correlation between external auditing and hidden accounting practices, indicating auditors’ awareness and efforts to detect manipulation. The study recommends enhancing auditor independence and equipping them with advanced analytical tools to improve detection capabilities and ensure the integrity of financial statements

Keywords

External Auditing
Hidden Accounting Practices
Predictive Analytics
Crossmark
AL-Qadisiyah Journal For Administrative and Economic sciences
Volume 26, Issue 4
Winter 2026
Pages 192-207

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