Reative Accounting and Corporate Governance

Experience has shown that students have difficulties in writing out their bibliography. The following list (which is not exhaustive) is included as a guide. This form of referencing is not compulsory. Whatever system is used must, however, be used consistently. Appendix D provides information on the Harvard System of referencing.


Using any recent corporate scandal, prepare a report (of 2,000  2,500 words in length), in answer to the following:

1. What do you understand by  creative accounting ? Why was  creative accounting used in your selected company, and how was it used? (20 marks)

2. Discuss the role of auditors in corporate governance and the extent to which you believe they discharged their responsibility in the case you have selected. (25 marks)

3. Discuss the extent to which you agree (or disagree) with the suggestion that there is a thin line between creative accounting and fraud. (25 marks)

4. What impact (if any) does creative accounting have on corporate governance?
(30 marks)
One author
Parker, R.H. (1994) Understanding Company Financial Statements (4th ed.) (London: Penguin Books).
Watts, J. (1993) Accounting in the Business Environment (London: Pitman).

Two Authors
Nobes, C.W. and Parker, R.H. (1995) Comparative International Accounting (4th ed.) (London: Prentice-Hall International).
Glautier, M.W.E. and Underdown, B. Accounting Theory and Practice (4th ed.) (London: Pitman publishing).

Three or more authors
Arnold, J., Hope, T., Southworth, A. and Kirkman, L. (1994) Financial Accounting (2nd ed.) (London: Prentice Hall International).
Parker, R.H., Harcourt, G.C. and Whittington, G. (1986) (2nd.ed.) (eds.) Readings in the Concept and Measurement of Income (Oxford: Philip Allan).

Articles in Journals
Ansari, S.L. and Bell. J. (1991)  Symbolism, Collectivism and Rationality in Organisational Control , Accounting Auditing and Accountability, 4(2): 4-27.
Dezaley, Y. (1991)  Territorial Battles and Tribal Disputes Modern Law Review, 54 (6): 792-809.