Easy Proposal Thesis Example | Topics and Well Written Essays - 500 words

Easy - Thesis Proposal ExampleInterviews and questionnaires will be used to fetch primary data, while financial statements will be used to obtain secondary data.The increased latch on of companies led to an increase in the number of legislation passed to protect businesses and the interests of sh arholders (AICPA 6). This has led to an increase in notional accounting, which is the manipulation of financial statements by accountants using their knowledge, in a way that is within the legal restrictions (Beidleman 655).Without rotary motion of auditors, and with accountants being under the command of managers, they can manipulate them to produce financial statements that do not exhibit the true and fair view of a firms financial performance (Hanno 135). There are various reasons advanced to explain why firms engage in creative accounting. These include a society trying to hide its poor performance in a particular year, or when it is avoiding takeovers (DeZoort, Hermanson and Hous ton 179).Accounting standards boast been revised to try curbing unethical issues in financial statement preparation and improving their integrity. However, managers and accountants fall in found ways of navigating this regulation remain within the confines of the law, and produce financial statement that do not reflect the actual position of a company. This has led to such companies experiencing financial strain and others collapsing.The spirit of this study is to find out the impacts that creative accounting has on a companys financial health. The study will give an insight on the consequences of creative accounting and the negative effects the institutionalize may have on a companys on-going and future performance.Various scholars have examine different aspects of creative accounting. According to Beasley, creative accounting is used to influence market expectations and increase consumers and investors potency in a firm (450).