CAUSAL EFFECT OF CREATIVE ACCOUNTING ON FINANCIAL REPORTING AND DECISION MAKING. (A Survey of Selected Financial Institutions in Nigeria)-email@example.com
By: Jackson Etibensi
A Concept Note Submitted to the University of Calabar, Graduate School as Prerequisite for Admission into MSc. Accounting, Faculty of Management Sciences. INTRODUCTION:
Financial Statements provides information that is used by interested parties (users) to assess and appraise the performance and financial Status of managers and the institutions respectively and also to make economic decisions. External auditors are engaged to ensure the reliability and trustworthiness of such Financial Statement so presented. STATEMENT OF PROBLEM: Managers may wish to use the flexibility within accounting to serve a range of managerial interest such as boost profit or increase assets, this may be done legally, but due to the too-frequent occurrence, users of these statements are shaken with disclosures by corporate management that certain irregularities have been discovered. This has altered their impression of firm’s business performance and even led to audit failure. Once managers step outside the rules and regularities that govern accounting, either due to the fact that they have gone through serious financial difficulties and is looking for any way to postpone collapse, it is in effect representing the negative impact of creative accounting. So this study would therefore be conducted to examine the causal effect of Creative Accounting on Financial Reporting. The forgoing is due to the fact that any alteration in the content or message presented in the Financial Statements (Creative Accounting) will violate and lead to the making of decisions that would affect the decision makers negatively and also lead to audit failure on the part of auditors, especially where a firm is facing a going concern. RELEVANCE OF STUDY
The study would help improve my knowledge of carrying out Financial analysis...
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Barnea, A. Chamberlain, S. L. and Marlinton, J. (1976). Managing Financial Reports of Commerical Banks: The Influence of creative accounting and earnings management. Journal of Accounting Research,33 (2) 231 – 261.
Wikipedia (2008). Creative Accounting, Wikipedia Foundation Inc. http:www.en.eikipedia.Org/wiki/ economic recession
Micheal John Jones. (2011) Creative Accounting, Fraud and International; Accounting Scandals, Hilleary and Publisher New York City.
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