CREATIVE ACCOUNTING AS AN ACCOUNTING MANIPULATION METHOD

Ali Altınbay and Osman Unal
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Ali Altınbay: DUMLUPINAR UNIVERSITY

Ekonomi Maliye Isletme Dergisi, 2022, vol. 5, issue 1, 217-232

Abstract: Financial irregularities in the world have shaken the trust in business management, which is responsible for preparing financial statements, and in the independent auditors who audit them. The main reason for these irregularities is the accounting manipulations that the company managements deliberately made in line with their own interests. There is no consensus on whether creative accounting, which is one of the accounting manipulation methods, is legal. However, the fact that the creative accounting methods used in the Enron scandal were brought to the extreme made these methods illegal. In the study, the Enron scandal was examined as a case study within the scope of financial irregularities. The reason for this is that the Enron scandal is an important event for the accounting, auditing and business world and a lesson to be learned. The things that make this event important; the amounts of the irregularities committed, the parties to the scandal and its consequences. At the end of the study, necessary suggestions were made to minimize accounting manipulations within the framework of financial losses and legal processes caused by Enron.

Keywords: Accounting Manipulation; Creative Accounting; Fraud; Enron (search for similar items in EconPapers)
JEL-codes: M40 M41 M42 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:gnx:emid43:2022-5-1-1124764

DOI: 10.46737/emid.1124764

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