Propensity to use global solutions of creative and aggressive accounting - in the light of accountants’ opinions

Aleksandra Szewieczek,Patrycja Ostrowska,T Kliestik

doi:10.1051/shsconf/202112903030

Aleksandra Szewieczek, Patrycja Ostrowska + Show 1 more

Open Access

https://doi.org/10.1051/shsconf/202112903030

Copy DOI

Abstract

Research background: The processes of globalization contributed to the unification of accounting principles through their standardization and harmonization. However, there is rapid and frequent permeation of innovative and complex transactions and as a result, the area and scale of implementation of creative and aggressive accounting practices are increasing. There is also a new issue of forensic audit, whose task is to prevent economic crime by mainly detecting financial crime and fraud. A research field that requires deepening is the analysis of the perception, understanding, and propensity of accountants to adopt creative and aggressive accounting solutions and their attitude toward forensic audit. Purpose of the article: The main purpose is to analyze the degree of knowledge and adoption of internationally known creative and aggressive accounting solutions and to investigate the propensity of people involved in accounting to commit fraud. Methods: The article employed survey methods and techniques (within an accounting students’ group and among accounting professionals) as well as literature analysis, synthesis, and inference. Findings & Value added: The results indicate that the degree of knowledge of creative accounting is the highest among the issues considered. The most important factors influencing the propensity to commit fraud are pressures caused by third parties (in particular superiors), financial benefits, and the fear of losing a job. Knowledge of the issues of forensic audit is low. It is necessary to conduct promotional activities to increase awareness of the issues studied and to shape appropriate ethical attitudes among accounting professionals.

Highlights

Over time and the development of both the domestic and international economy, financial reporting has become one of the most evolving areas of accounting
In terms of knowledge whatever the concepts of aggressive and creative accounting can be equated, the answer was mostly negative (69.5% of the respondents). 24.4% did not know the answer to this question, and 6.1% stated that these concepts are equated with each other
When examining the issues of general knowledge of creative and aggressive accounting in the accounting environment, it can be concluded that its level is high, the creative accounting is better recognized

Summary

Introduction

Over time and the development of both the domestic and international economy, financial reporting has become one of the most evolving areas of accounting. According to the International Financial Reporting Standards (Commission regulation, 2008), the primary purpose of financial statements is to provide useful and reliable information about the entity to internal and external recipients Accounting trends such as creative and aggressive accounting have evolved along with the development of accounting. Creative accounting is defined as the activities of persons responsible for the preparation of financial statements, consisting in presenting the economic situation in such a way as not to present the actual financial situation of the entity but using loopholes in the law regarding procedures, rules, and standards to transform data until the desired result is achieved. This requires creative and resourceful actions from people who prepare financial statements (Stępień, 2014)

Objectives

Methods

Results

Conclusion