SAFEGUARDING FINANCIAL INTEGRITY: THE ROLE OF AUDITORS IN MITIGATING THE CREATIVE ACCOUNTING PRACTICES
SAFEGUARDING FINANCIAL INTEGRITY: THE ROLE OF AUDITORS IN MITIGATING THE CREATIVE ACCOUNTING PRACTICES

Author(s): EUGENIA BOGOS (CALANCEA)
Subject(s): Business Economy / Management, Accounting - Business Administration
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: accounting; financial auditing; financial statements; creative accounting;
Summary/Abstract: This article explores the crucial role of financial auditors in curbing the prevalence of creative accounting practices. Creative accounting, characterized by the manipulation of financial statements to present a distorted view of an entity's financial performance, poses significant risks to financial integrity and investor confidence. Through a comprehensive analysis of existing literature and case studies, this study investigates the strategies that auditors can employ to limit the usage of creative accounting practices. It examines the importance of professional skepticism, ethical behavior, and adherence to auditing standards in detecting and deterring manipulative techniques. The article also explores the role of regulatory frameworks and audit quality in enhancing auditor independence and effectiveness. By providing insights into the challenges faced by auditors and offering practical recommendations, this research contributes to the ongoing dialogue on strengthening financial reporting integrity. It aims to assist auditors, regulators, and stakeholders in promoting transparency, accountability, and trust in financial statements. Ultimately, the findings of this study underline the vital role auditors play in preserving the reliability and credibility of financial information.

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