The effect of creative accounting on the reliability of financial reports

ABSTRACT_ The purpose of this research was to identify the most significant methods of manipulation used by management in financial statements, as well as the reasons and motivations for this manipulation, and to state the most important means that can be used to limit or minimize the effects of manipulation on financial statement beneficiaries. To accomplish this purpose, this paper created and delivered (68) questionnaires to the study's participants, who comprised auditors, accountants, and accountants from economic organizations. This paper used the Statistical Package for Social Sciences (SPSS) application to analyse the data. This research concluded that creative accounting impacts the reliability of financial statements and that its methods and intentions can be exposed by the auditor's dedication to professional ethics and professional competence in carrying out his responsibilities. It is also in charge of identifying the fraud and manipulations that management engages in. KEYWORDS: Creative accounting, financial statements, professional ethics, professional competence, fraudulent practices.