Assessment of Accounting Spheres as Viewed by Accountants of Czech Enterprises
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The aim of the paper is to analyse financial statement components that are often affected by so-called “creative accounting”. Like other areas of human activity, accounting is prone to errors. Financial statements are relevant to users only to the extent that the information presented in the statements is correct and error-free. Accounting differentiates between unintentional errors, caused by mistakes, and errors which are intentional and purposely distort financial statements. Objectively surveying errors and creative accounting has been demanding and problematic in the past. Therefore, we evaluate this issue from the subjective viewpoint of accountants themselves.
Representatives of 282 Czech firms were asked to evaluate financial statement components and related accounting treatments according to their complexity, risk of unintentional errors and potential for intentional errors or distortions. In-person interviews were conducted by students with the accountant or chief accountant...
This paper was supported by Project IGA/FaME/2016/008: The Impact of Accounting Information Quality on Business.