The Emergence of Creative Accounting in Insufficiently Regulated Business Systems

Creative Accounting is a concept whose increasing market fluctuations, uncertainties and pressures are coming to the forefront. The aim of this research is to prove that creative accounting, as a practice, most often occurs in those organizations that have not formulated and implemented internal procedures and controls in their organizational system or may not consistently apply them. Furthermore, strengthening corporate culture and constant work on the loyalty and ethical aspects of decision making of employees largely prevents the emergence of creative accounting in that organization. To find the evidence to support our research questions, a survey was conducted in the form of a questionnaire, while respondents were employees from the sectors of Accounting, Finance, Auditing, as well as graduate students in the fields of Accounting, Auditing and Management in major cities in the Republic of Serbia.