Archive of Journal - Financing
Financing – scientific magazine for economy
ISSUE 2020, No. 4, Article 2, Year of publication: 11, December, 2020
Sinisa Rajković, MSc*
*Association of Accountants and Auditors of Republic of Srpska
Based on the conducted qualitative empirical research, the paper analyzes the representation (presence) of creative accounting in the financial statements of companies in the Republic of Srpska on a sample of 603 respondents. The empirical research was conducted in the period December 2018 – January 2019 in 11 cities in Republic of Srpska. For the purposes of the research, a survey questionnaire with Likert-type scale was used as an instrument for measuring the attitudes and opinions of respondents (accountants and auditors). The aim of the research was to examine the opinions of respondents about: the representation (presence) of creative accounting in the financial statements of companies in Republic of Srpska, the impact of creative accounting on the quality of financial reporting and how to mitigate that impact, the most common motives, goals and procedures.The obtained research results indicate that the accounting profession is under strong pressure from management structures, which is why accountants face serious ethical challenges. Creative accounting is present in the financial statements of companies in Republic of Srpska and has a negative impact on the quality of financial reporting. The research showed that the most common motive for the use of creative accounting is tax evasion, and that the most commonly used creative procedure is incorrect assessment of the value of property and equipment. The obtained findings indicate the need to raise the level of quality control of the work of both the accounting and auditing professions.
Keywords: creative accounting, goals and motives of creative accounting, creative accounting procedures, quality of financial reporting
DOI: DOI: 10.7251/FIN2004021R