FROM CREATIVE ACCOUNTING PRACTICES AND ENRON PHENOMENON
             TO THE CURRENT FINANCIAL CRISIS

                               Dana Simona Gherai, University of Oradea
                              Diana Elisabeta Balaciu, University of Oradea


ABSTRACT: The aim of this paper is to bring into attention the creative accounting phenomenon. Types
of creative accounting practices has been examined comparing scandals occurred in large companies
in the last two decades. In order to realize this scope we define the concept of creative accounting and
its various forms, and we try to figure the reasons why we came into a financial crisis again, even if the
history taught us that the risks are very large. We discuss the implication of creative accounting in the
current financial crisis because many financial enterprises have sought state support within a short
period of receiving unqualified audit opinion. The research method is a deductive one, fundamental
type that give us the necessary prerequisites for future research. We believe that creative accounting
practices will not disappear unless the causes which have given rise to them will disappear, too.
Therefore, although driven by the intention to limit creative accounting, the accounting normalisers
must take into account the circumstances that allow its expression under close supervision.

Key words: creative accounting, fraud, audit, financial statements.

JEL codes: M41, M42, M49