UDC: 657.632 ; 658.14/.17(047.32)

DOI: 10.7595/management.fon.2012.0001

The topic of this research refers to creative accounting, the causes of its presence in modern market economy and possible instruments of fight against its further expansion. The problem of creative accounting is mostly dealt with by foreign authors, while a theoretic concept in the Republic of Serbia is still at its early stage. Therefore, in the first part of our paper we will present the reader a notion of creative accounting and the basic methods of its implementation in modern business practice. We will present the results of the research considering basic causes of, according to the opinion of interviewed persons, more and more frequent examples of illicit creative accounting in the composition of financial reports of economic entities in the Republicof Serbia. On the basis of current literature and research results, we will analyse whether auditing is one ofthe key instruments in fighting a wider implementation of illicit creative accounting. 

Key words: illegal creative accounting, management, auditing.

Goranka Knežević, Vule Mizdraković, Nada Arežina

Faculty of Business in Belgrade, „Singidunum“ University

Download article: Management as cause and instrument of creative accounting suppression