Fighting The Enemy Of Fair View Principle – Getting To Know Creative Accounting

Abstract

In this paper, we aim to discuss the role of creative accounting as a technique of accounts manipulation in contrast with the fundamental principle of accounting – fair view presentation, and the ethics of the accounting profession. In order to do so, we review the opinions of various authors on the subject while contrasting both fraud and professional ethics with creative accounting, and explaining the inverse causal relationship that arises between creative accounting and fair view principle. Fur-ther on, we determine what the role of auditors and corporate governance is in winning the fight over this kind of accounting practices. The study of previous literature is meant to be the basis for some possible comprehensive solutions we put forward that, from the point of view of accounts manipula-tion, would help achieve the transparency and trustworthiness that financial reporting deserves. When we propose these solutions, our main focus is on Romania. However, by extension, they could be ap-plied anywhere else.