CREATIVE ACCOUNTING FROM THE PERSPECTIVE OF MANAGEMENT

Deliberate accounting changes are referred to as creative accounting, where management can be carried out at the same time as initiating changes, as well as a victim of their results. Creative errors and fraud in accounting have serious implications for the management of a company. It is shown that some managers and especially shareholders mistakenly and frequently cause unrealistic expectations of positive economic outcomes. It is necessary to investigate issues in terms of both accounting itself, as well as in terms of a complex context in concepts from various disciplines associated with management. This contribution is from the accounting point of view: a dual view; on the one hand the characteristics of trends in accounting (e.g. pentable, environmental accounting etc.) and then from the view of the evolution in the methods used to identify errors and fraud. As an illustration, the principle of the rapid test Q-DMFCA (Quick - Detection of Material Flow Cost Accounting or Quick- Detection Model of Fraud Creative Accounting) is given, which was created based on our own research [1; 2]. In addition, the contribution focuses on a comprehensive enumeration of those related scientific disciplines, which closely work together in implementing creative accounting in custody in the management of the enterprise. The result of the research confirms the hypothesis that it is necessary to simultaneously watch the development of accounting disciplines, which have their own life and can help monitor creative accounting (e.g. managerial, pental, behaviour and others) and of developing selected modern managerial disciplines or at least their selection. An overview of identification methods used in accounting fraud is made in this contribution. Methods of identifying fraud have been classified into groups according to the approach to resolving the issue. The Q-DMFCA model appears to be useful to the management of a company, for a simple orientation of controlling sales, materials and losses. Work is currently underway on a comprehensive connection between professional disciplines in relation to creative accounting. According to PRICEWATERHOUSE COOPERS [3] the majority of management (77 %) lose time and finances solving fraud. This contribution should bring further insight, in particular for management and internal control.