Determine the Impact of the Related Party on the Financial Reporting Quality Using Factor Analysis - Case Study of Algerian Institutions -

摘要

This study analyses the relationship between the financial reporting and related party using factor analysis method. We find that accounting and auditing increase the quality of information and this contributes to protecting companies from fraud and manipulation. We argue that governance has a lower impact on the financial reporting in Algerian institutions. The survey conducted on a group of accountants and auditors confirm this argument. Overall, our results indicate that accounting and auditing can lead to better financial reporting via their impact on the quality of information.