What is the purpose of creative accounting?

Creative accounting consists of accounting practices that follow required laws and regulations but capitalize on loopholes in accounting standards to falsely portray a better financial image of a company. Creative accounting techniques vary and evolve as regulations change to close the loopholes that allow them.

What is the role of an auditor in accounting?

An auditor is an independent professional who looks into an organization's financial statements and assesses whether they are a fair and detailed representation of the organization's financial position. Auditors also ensure that an organization is complying with applicable laws and regulations.

What is the role of the auditor in CG?

The auditor's role includes verification of financial statements, assessment of internal controls, ensuring compliance with rules and regulations, and advising on improvements.

How do you control creative accounting?

How can you avoid creative accounting? Companies should be consistent in applying accounting policies and methods. Companies should refrain from creating artificial financial transactions and overvaluing assets. Auditors of businesses should look in depth when carrying out their auditing procedures.

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