• Neha Banshiwal
• Dr. Hemant Kaduniya

Creative accounting has become very interesting topic recently due to the increase of scandal that involves large companies worldwide like Satyam, Ricoh etc. Despite the wide spread of creative accounting practices, the academic studies are still few. The purpose of this study is to examine the effect of creative accounting practices on financial reporting system, techniques, reasons and the probable ways to preventing and curbing the creative accounting practices. In this study a questionnaire-based survey methodology was used. The sample constituted of respondents including 38 professional chartered accountants, and 27 Research scholars. The findings reveal that companies use the practices of creative accounting to reduce tax payments, to increase market value of shares and to establish the ground for loan accessibility companies. The results also indicate that by implementing forensic accounting techniques, external audits, strict accounting measures and establishing ethical atmosphere are the probable way to prevent creative accounting practices in corporate financial reporting system.

creative accounting, financial reporting, forensic & fraud detection accounting

"Creative Accounting : An Exhibition of Corporate Art", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.8, Issue 7, page no.a14-a19, July-2021, Available :http://www.jetir.org/papers/JETIR2107003.pdf

"Creative Accounting : An Exhibition of Corporate Art", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.8, Issue 7, page no. ppa14-a19, July-2021, Available at : http://www.jetir.org/papers/JETIR2107003.pdf