Home Part 4 THE IMPACT OF CREATIVE ACCOUNTING ON FINANCIAL AUDIT

 

Associate professor RADU VASILE POP Ph.D

”Vasile Goldiș” Western University of Arad

Abstract

The information supplied by the financial statements based on creative accounting presents a large number of characteristics: the usefulness of information in the decision making process, the relevance (pertinence), reliability (objectivity or credibility), opportunity (meeting deadlines), predictive value, retrospective value, verifiability, neutrality, fidelity, prudence, continuity, importance, balance between cost and benefits, complete character (completeness), the absence of misleading elements, intelligibility, comparability.

Detecting creative accounting influences on financial statements is the role of the financial auditor who can correct these deviations.

Keywords: creative accounting, accounting norms, annual financial situations, reality, financial audit

JEL Classification: M41

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