Creative Accounting between Uninspired Name, Reglementation and Fraud

Author:Univ. Prof. Emil HOROMNEA, Ph. D.; Ana - Maria PAŞCU , Ph. D. Student; Alina - Mariana ISTRATE, Ph. D. Student

JEL:M41, M42

DOI:

Keywords:creative accounting, engineered accounting, fraud, audit, financial scandals

Abstract:
Normalization, harmonization, convergence and internationalization processes put a great mark on accounting as a language of communication in the business world. Reflecting economic transactions often behaves with more options. Obtaining the accurate image legitimized the intervention of professional judgment. Choosing a norm or an option means, naturally, the abandonment of other norm, having consequences on the financial statements, on the financial position and on the performance of enterprise. The negative dimension of our profession that we uninspiredly use to call „creative accounting”, enters in the scene.\r\nThe biggest financial scandals have in their substance the „tandem” fraud - creative accounting. The present study tries to highlight, by comparison, the links between the two interfaces, including reasons and factors that underline accounting fraud and engineering. The certification of accounting information by audit identifies the risks of fraud, increasing the credibility of business.\r\n\r\n

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