Any Justification for Creative Accounting: Where Are Fraud, Examiners?

26 Pages Posted: 16 Nov 2018

See all articles by Godwin Oyedokun

Godwin Oyedokun

OGE Professional Services Ltd; Nasarawa State University, Keffi

Date Written: October 16, 2018


The slippery slope is described as ‘playing the system’, ‘beating the system’, and fundamentally neglecting the laid down rules, regulation within the system for selfish reasons. This presentation revealed the justification, ethical or otherwise for creative accounting, aggressive earnings management and related concepts as it affects the professional judgement of fraud examiners. The role of fraud examiners is put to light in ensuring that the users of financial statements are not continued to be put in the dark with respect to the state of the concerned company. This presentation also explores both positive and negative side of Creative accounting and revealed the consequences of the same within the context of fraud examination and financial reporting structures. It is concluded that The use of aggressive accounting techniques may not necessarily be fraudulent. However, it may be the start of a slippery slope, where legitimate earnings management descends into earnings manipulation or fraudulent accounting. This presentation recommends that fraud examiners should take seriously the ACFE code of ethics in resolving the allegation of fraudulent activities as may also concern creative accounting by seeing the bigger picture.

Keywords: Aggressive accounting, Creative accounting, Earnings management, Fraud examination, Fraudulent financial statement

JEL Classification: M40, M41, M42

Suggested Citation

Oyedokun, Godwin, Any Justification for Creative Accounting: Where Are Fraud, Examiners? (October 16, 2018). Available at SSRN: or

Godwin Oyedokun (Contact Author)

OGE Professional Services Ltd ( email )

2nd Floor, Back Wing, 28, Adeyemi Street, Off LUT
Mushin, Lagos

Nasarawa State University, Keffi ( email )

Department of Accounting
Faculty of Administration
Keffi, Nasarawa 234
+23480833737184 (Phone)

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