Ethics in Accounting Practices Creative Accounting Practices and Their Impact on Financial Statement Transparency Enron Case Study Corporation

Anggi Mailani; Ani Septiani; Aprilia Eka Saputri; Indriyani Aprilia  Setiawan; Yernita Bago

doi:10.55927/metropolis.v1i2.252

Authors

Anggi Mailani Universitas Bina Sarana Informatika
Ani Septiani Universitas Bina Sarana Informatika
Aprilia Eka Saputri Universitas Bina Sarana Informatika
Indriyani Aprilia Setiawan Universitas Bina Sarana Informatika
Yernita Bago Universitas Bina Sarana Informatika

DOI:

https://doi.org/10.55927/metropolis.v1i2.252

Keywords:

Creative Accounting, Financial Statement Manipulation, Transparency, Accounting Ethics

Abstract

This study aims to examine creative accounting practices and their impact on financial statement manipulation. Creative accounting is something that is done in utilizing the flexibility of accounting standards to create financial statements that benefit certain parties without breaking the rules. Although not always illegal, this practice can disguise true financial information and mislead stakeholders. This study uses a qualitative approach and case analysis to identify the forms of creative accounting, the motivations for its application, and the implications for the transparency and credibility of financial statements. The results show that creative accounting is often used to manipulate financial statements, which can make investors, creditors and other parties make wrong decisions. Therefore, there needs to be stricter supervision, clear rules, and accountants who have high ethics so that creative accounting is not misused.The results show that creative accounting is often an entry point to financial statement manipulation which has a negative impact on decision making by investors, creditors, and regulators. Therefore, increased supervision, stricter regulations, and strong professional ethics of accountants are needed to minimize the risk of creative accounting abuse.

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