CREATIVE ACCOUNTING AND FRAUD: A COMPARATIVE APPROACH
Autor (i): Ciocan, Claudia Cătălina
JEL: M21, M41, M42
Cuvinte cheie: creative accounting, financial fraud, financial statements, financial reporting financial scandals
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.
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.
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