Creative Accounting: Motives, Techniques and Preventive Measures

*Adamu Umar
** Prof. Kabiru Isa Dandago
***Khadija Salihu Abubakar
**Postgraduate Student, Department of Accounting, Bayero University Kano Tel.: 08036030987.
**Department of Accounting, Bayero University Kano. Tel: 08023360386 E-mail:
***Department of Accounting, Al-Qalam University Katsina. Tel.: 07032202224. E-mail:

Creative accounting has been globally acclaimed to be a veritable tool in the hand of managers
for manipulation of accounting information. This paper examines the concept of creative
accounting, its various techniques and possible preventive measures. Several literatures have been
reviewed and acknowledge on the concept of creative accounting. The study utilizes Library
research design. Literatures reveal that creative accounting has no generally accepted definition.
However, there is consensus as regards to the relationship between creative accounting and fraud.
The study discovers that personal interest, market expectations and special circumstances are the
motivating factors of creative accounting. It further reveals that extra ordinary items, off-balance
sheet financing and flexibility of accounting standards are the major techniques used for creative
accounting. The study concludes that creative accounting causes serious challenges to the
accounting profession. The study recommends that good governance mechanisms should be
observed on the basis of compliance with accounting standards, corporate governance codes and
ethical codes of the accounting profession.
Keywords: Accounting, Creative, Ethics, Fraud, Governance, Manipulations,

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