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From Creative Accounting Practices And Enron Phenomenon To The Current Financial Crisis


  • Dana Simona Gherai

    (University of Oradea)

  • Diana Elisabeta Balaciu

    (University of Oradea)


The aim of this paper is to bring into attention the creative accounting phenomenon. Typesof creative accounting practices has been examined comparing scandals occurred in large companiesin the last two decades. In order to realize this scope we define the concept of creative accounting andits various forms, and we try to figure the reasons why we came into a financial crisis again, even if thehistory taught us that the risks are very large. We discuss the implication of creative accounting in thecurrent financial crisis because many financial enterprises have sought state support within a shortperiod of receiving unqualified audit opinion. The research method is a deductive one, fundamentaltype that give us the necessary prerequisites for future research. We believe that creative accountingpractices will not disappear unless the causes which have given rise to them will disappear, too.Therefore, although driven by the intention to limit creative accounting, the accounting normalisersmust take into account the circumstances that allow its expression under close supervision.

Suggested Citation

  • Dana Simona Gherai & Diana Elisabeta Balaciu, 2011. "From Creative Accounting Practices And Enron Phenomenon To The Current Financial Crisis," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(13), pages 1-3.
  • Handle: RePEc:alu:journl:v:1:y:2011:i:13:p:3

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    References listed on IDEAS

    1. Higson, Chris, 2001. "Intangibles: Management, Measurement, and Reporting: by Baruch Lev, Washington, DC, Brookings Institution Press, 2001, pp. viii+216," The International Journal of Accounting, Elsevier, vol. 36(4), pages 501-503, 012.
    2. Sikka, Prem, 2009. "Financial crisis and the silence of the auditors," Accounting, Organizations and Society, Elsevier, vol. 34(6-7), pages 868-873, August.
    3. repec:eee:crpeac:v:19:y:2008:i:2:p:222-254 is not listed on IDEAS
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    Cited by:

    1. repec:eco:journ1:2017-02-39 is not listed on IDEAS
    2. Ndebugri, Haruna & Tweneboah Senzu, Emmanuel, 2017. "Analyzing the critical effects of creative accounting practices in the corporate sector of Ghana," MPRA Paper 81113, University Library of Munich, Germany, revised 04 Sep 2017.
    3. Fizza Tassadaq & Qaisar Ali Malik, 2015. "Creative Accounting and Financial Reporting: Model Development and Empirical Testing," International Journal of Economics and Financial Issues, Econjournals, vol. 5(2), pages 544-551.

    More about this item


    creative accounting; fraud; audit; financial statements.;

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other


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