Creative Accounting Practices – Does that impact Accounting Ethics?

Abstract

Creative accounting commonly pertains to a systematic procedure of misrepresenting the accurate profits of the company. In the current era we come cross so many scams and scandals and that is strongly because of the application of creative accounting practices. There are few ways under creative accounting practices which will deviate the true spirit of accounting ethics.

Objectives: The present study finds the awareness levels of students, auditors, Managers and other employees on creative accounting practices. It also focuses on finding out the major reasons for the company to adapt such kind of euphemism.

Research Methodology: A structured questionnaire was designed and was sent to 250 respondents. But the responses were drawn from 212 respondents only. The data was analysed using descriptive and inferential statistics.  The study also tests the “significance impact of creative accounting practices upon accounting ethics” through Chi – Square Test (Goodness of Fit). It was evident that hardly few people are aware of this notion and there is a significant effect of such practices upon accounting ethics.