Purpose The purpose of this study is to examine the relation between related party transactions and both accrual and real earnings management practices in Jordanian industrial public-listed companies, taking into account the uniqueness of the Jordanian company ownership structure. Design/methodology/approach Data were collected from Jordanian industrial public-listed companies for the period 2011–2017. Accrual earnings management is measured by using the modified Jones model, whereas real earnings management and related party transactions are measured by using relevant proxies. A regression model is developed and used to assess the relation between related party transactions and earnings management, taking into account the effects of ownership concentration, family ownership and institutional ownership levels of the companies involved. Findings Accrual earnings management is negatively associated with related party transactions. Regarding the role of ownership structure, the presence of institutional investors is positively associated with using both related party transactions and real earnings management, whereas ownership concentration plays an efficient role to mitigate the use of both accrual earnings management and related party transactions. No statistically significant relations between real earnings management and related party transactions exist. Practical implications This study has direct practical implications for the Jordanian regulatory authorities to enact regulations to limit the misuse of related party transactions and earnings management transactions and ensure sufficient monitoring of these transactions because of their prevalence. Jordanian companies should also enhance their corporate governance systems to better approve and monitor such transactions, including enhancing the role of independent and non-controlling board members in this process. Originality/value Related party transactions are considered as a major concern of financial reporting quality in developed countries, and such transactions are found to be relatively more problematic in developing countries, where corporate governance is generally weak, and there is limited disclosure and transparency in financial reporting. From this perspective, this study is one of the very few studies in developing countries that explore the issue of related party transactions and their association with earnings management practices. Thus, the findings of this study can arguably be to some extent generalized to other developing country contexts, because of relatively similar business environment conditions, and therefore potentially fill a gap represented by the paucity of similar studies in developing countries.

The study aimed to exam the impact of using the analytical procedures on reducing the cost of a tax audit in the Jordanian Income and Sales Tax Department. To achieve the aim of the study, the analytical descriptive approach has been used and a questionnaire has been designed and given out to the study sample, which represented from the auditors of Directorate of senior taxpayers and directorates of medial taxpayers in the income tax department and sales who work in these directorates. The appropriate statistical methods have been used to find results. The findings showed that using the analytical procedures led to reducing the cost of a tax audit in all auditing stages. The stage, which has the most impact of using the analytical procedures on reducing the cost, is the final auditing stage followed by the planning stage and the implementation (fieldwork) stage. The study recommended the necessity of compulsion of the auditors in tax department to use the analytical procedures because it reduces the cost of tax auditing and the necessity of holding workshops and training programs to define the importance of analytical procedures in tax auditing.

After the collapse of the Islamic Caliphate in Istanbul and the loss of the First World War, Shari'a and Arabic as the law and language of the Muslim world were replaced with common laws and numerous European languages were introduced into the new Arab states. These events led to calls for reestablishing the shari’a for all aspects of life. Arab countries responded by constituting Islamic parties and institutions including Islamic banks. Islamic banks flourished quickly all over the world. Some consider this evidence of success. Most of the operations of Islamic banks (40%-80%) were in the area of Murabaha. Accounting and auditing standards were issued by the Organisation of Accounting and Auditing Standards for Islamic Financial Institutions in Bahrain (OAASIFI) in 1997 by translating the international standards so as to begin from where others reached. Many questions were raised about the lawfulness of Islamic banks operations, although there are shari’a control bodies in every bank, which make it necessary to investigate its activities. This is an analytical study of Islamic bank operations from a shari’a point view regarding Murabaha to the order of the purchaser concluding that it is far from shari’a’s principles and provisions.

This study examines the impact of political connections and government ownership on accrual and real earnings management. Based on a Jordanian sample of 310 firm-year observations, the study finds evidence that politically-connected firms exhibit a higher level of 1

This study examines the impact of political connections and government ownership on accrual and real earnings management. Based on a Jordanian sample of 310 firm-year observations, the study finds evidence that politically-connected firms exhibit a higher level of 1