Abstract
Research background:Creative accounting is a set of skills that allow people to produce an artistic, scientific or other creative activity that creates new, unusual and acceptable ideas, which are transformed into financial statements, which then form a positive view of the company’s economic activities.Purpose of the article:Creative accounting is a problem all over the world, as it adversely affects the financial statements in each country. The article describes models that help reveal the creativity of accountants and financiers. Procedures for identifying possible accounting delays are based on analytical models. In particular, it is complex statistical methods or data collection techniques that identify hidden, unusual patterns that indicate fraud. These analytical models are therefore used to detect various errors and fraud in accounting.Methods:Analytical models will be available to identify different methods of accounting abuse. Interest is placed on the analytical models of Beneish model and the Modified Jones model. The main objective of using these models is to reveal creative accounting in sector A - Agriculture, forestry and fishing. Fraud is investigated using sophisticated analytical methods that reveal improved data.Findings & Value added:Creative accounting in the conditions of the Slovak Republic but also globally is still not possible completely to reveal. The value added of this article can be mentioned as the benefit for potential business partners as well as investors interested in the analysed sector and the other hand for the other for the state administration.
Highlights
Economic crime in the world, and in Slovakia, has taken on enormous proportions over the years
Over the years, when business owners began to use different types of financing for their activities, whether from their own resources or from others, accountants had to cope with the influx of new and new funds into the company, which did not always correspond to the situation the company spent on its business
As not all of the money came from the owners, business owners were forced to turn to the accountants again and suggest that they monitor indicators that could indicate various favourable as well as unfavourable business directions
Summary
Economic crime in the world, and in Slovakia, has taken on enormous proportions over the years. As not all of the money came from the owners, business owners were forced to turn to the accountants again and suggest that they monitor indicators that could indicate various favourable as well as unfavourable business directions. These indicators were able to reveal various ailments that arose from the company's management and show the owners where their weaknesses are and where, on the contrary, they significantly outperform others, as without benchmarking there would be no competition in the world and consumers would not receive high quality products, low prices at optimal costs. Wokukwu argues that transparency in the financial reporting system is of utmost importance because individuals, potential investors, creditors and regulators have to make investment decisions based on corporate financial reports [1]
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