Presenting a Conceptual Model of Creative Accounting

Accounting scandals, Creative Accounting, and fraud are always there. Recently, large joint-stock companies have been caught in financial scandals that occurred due to Creative Accounting, and these scandals had a very deep impact on the financial institutions of that country and its consequences on the financial markets of other industrialized countries. In Creative Accounting, the reporter tries to present a false and desired image of the company by using the non-standards, tax laws, and financial regulations in the context of conducting a financial event, without violating accounting principles and standards. The purpose of the current article is to present a conceptual model to prevent Creative Accounting. The research method is qualitative. An inductive approach was used. The data was obtained from the data foundation method and interviews with experts. 15 interviews were conducted with the participants. Also, the theoretical sampling method has been used in the research. Data analysis was done in three stages open coding, central coding, and selective coding using MAXQDA software. Based on the six dimensions of the conceptual model categories (causal conditions, Central phenomenon, Contextual factors, Intervening factors, Strategies, and consequences), the final research model was obtained. The conceptual model of research in causal conditions includes fundamental, organizational, and specialized features. In the central phenomenon including commitment; Idealism; Contextual conditions: legal and environmental requirements; in the section on intervening conditions: managerial, structural, and supervisory features; in the strategy section: information management, compatibility, and legal reporting. In the end, it is expected that Creative Accounting will be prevented by implementing these strategies and emphasizing the economic and social consequences.