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Creative Accounting And Fraud: A Comparative Approach

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  • Ciocan, Claudia Catalina

    (Alexandru Ioan Cuza University of Iasi, Doctoral School of Economy and Business Administration,)

Abstract

The famous scandals of the past few years, the collapse of Enron, Parmalat, Xerox, WorldCom, have highlighted the creative manifestations of accountants. These manifestations, on the limit of legality, or, more severely, outside of it, have seriously affected the way in which, on a side, the profession and its accountability were to be seen in the future, and, on the other side, the activity of the companies. Even if it is considered that we have overcome the financial crisis, the business world is still a risky one, a real jungle where the strongest survives. In order to win in the „struggle for survival”, the accountants were and are still using in some cases creative or fraudulent techniques. The concepts to which these techniques refer (creative accounting or fraud) are often considered synonymous in practice. In this paper we aim to present the characteristics, and to identify both the common points and the differences between the two.

Suggested Citation

  • Ciocan, Claudia Catalina, 2018. "Creative Accounting And Fraud: A Comparative Approach," Management Strategies Journal, Constantin Brancoveanu University, vol. 42(4), pages 157-163.
    • Handle: RePEc:brc:journl:v:42:y:2018:i:4:p:157-163
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    References listed on IDEAS

    as
    1. Oriol Amat & Catherine Gowthorpe, 2004. "Creative accounting: Nature, incidence and ethical issues," Economics Working Papers 749, Department of Economics and Business, Universitat Pompeu Fabra.
    2. Atul Shah, 1998. "Exploring the influences and constraints on creative accounting in the United Kingdom," European Accounting Review, Taylor & Francis Journals, vol. 7(1), pages 83-104.
    3. Merchant, Kenneth A. & Rockness, Joanne, 1994. "The ethics of managing earnings: An empirical investigation," Journal of Accounting and Public Policy, Elsevier, vol. 13(1), pages 79-94.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    creative accounting; financial fraud; financial statements; financial reporting financial scandals;
    All these keywords.

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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