The Role of the Psychology of Lean Accounting Principles in Enhancing the Reliability of Financial Statements

Abstract

Omar Kaysar Abdulamir* and Jamel Chouaibi

There are many problems in operations that cannot be found in the financial statements, despite the significant improvement in cash flows. Because of these and other problems, traditional methods in management accounting systems have become useless. As the traditional accounting systems created many distortions in the reliability of the financial statements that could impede the progress in the business, which required the auditors to adopt the principles of lean accounting in order to enhance the reliability of the financial statements. The current research aims to demonstrate the effect of using lean accounting principles by the auditor in enhancing the reliability of the financial statements in the auditors' offices in Iraq. The researchers translated the goal of the research into a hypothetical model that includes the variables, dimensions and hypotheses of the research according to the analytical curriculum in the auditors' offices. Then several hypotheses were formulated and tested using the appropriate statistical methods and using the statistical package program (SPSS) and (Amos) to prove the validity of the research hypotheses related to the correlation and influence between the two research variables using the multiple regression coefficient and the correlation coefficient. Workers in auditors’ offices in Iraq represented the research community. The sample size was determined by (208) individuals. The research also reached a set of conclusions, the most important of which is the existence of a correlation between the principles of lean accounting and the reliability of the financial statements in the auditors' offices in Iraq. Based on the conclusions that the research included, the researcher presented some recommendations, the most important of which is giving more attention and focus by officials in the auditors' offices to the principles of lean accounting and its methods of application, as it is one of the contemporary accounting issues.