THE PERCEPTION OF ACCOUNTING EDUCATORS AND PRACTITIONERS TOWARDS THE PRACTICES OF CREATIVE ACCOUNTING

Abstract

The study examined perception of Accounting Educators and Practitioners towards the practices of creative accounting. The study adopted descriptive research of a survey type. The population of the study comprises 187 Accounting Educators (academic staff) and practitioners at Afe Babalola University, Ado Ekiti and Federal Polytechnic, Ado Ekiti. The sample of the study was 60 respondents selected using a purposive random sampling technique. Questionnaire was the instrument used for data collection. Face validity of the instrument was ensured by the experts in the Department of Accounting. The reliability of the instrument was determined through a pilot-test conducted on the instrument. The reliability coefficient of 0.85 was obtained using the Cronbach alpha coefficient. The research questions were answered using mean scores and standard deviation and ANOVA test was used to test the hypotheses formulated at 0.05 level of significance. The study revealed that practices of creative accounting affect all the characteristics of accounting information as well as users' investment decisions and the integrity of the practitioners. In conclusion, accounting educators and practitioners indicated that creative accounting negatively affect the accounting information and the profession. Therefore, the study recommended that accounting bodies should take strict measures to curb creative accounting practices among accounting practitioners, to restore integrity and users' confidence in accounting information. Also, a monitoring group should be in place to check the draft of accounting information prepared by any organization this would be required to prepare a financial statement before being finally published for public consumption. KEYWORDS: Accounting Operation, Accounting, Auditing, Investment Decision, Financial Reporting