Avoiding creative accounting: corporate governance and leadership skills

• Main Authors: Hans-Christian Brauweiler, Aida Yerimpasheva, Zarema Balgabayeva
• Format: Article
• Language: English
• Published: Rada Naukowa SKwP 2019-10-01
• Series: Zeszyty Teoretyczne Rachunkowości
• Subjects: creative accounting; leadership skills; corporate governance; Sarbanes–Oxley (SOX) Act; manipulations with information
• Online Access: http://ztr.skwp.pl/gicid/01.3001.0013.4353

The subject of the research is the growing criticism of the phenomenon of creative accounting in modern economic systems. The main purpose of the article is to study the issues related to creative accounting and find out whether it is possible, through organizational culture and corporate governance principles, to influence accountants’ decisions regarding the use of creative accounting. The research methodology is based on theoretical and empirical research. The authors have tried to explain the phenomena of creative accounting and distinguish creative accounting from the anomalies of accounting fraud. The main result of the research is proof that it is possible and necessary to apply the leadership concept to reduce the negative consequences of creative accounting. The abuse of creative accounting methods should be eliminated by improving ethical norms. In turn, improving ethical standards is impossible without developing leadership skills among people who are professionally engaged in accounting.