COSMETIC ACCOUNTING: A REVIEW OF LITERATURE AND PERCEPTION OF ACCOUNTANTS’ IN NIGERIA
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Date
2011
Journal Title
Journal ISSN
Volume Title
Publisher
Department of Economics, University of Maiduguri, Nigeria
Abstract
A scrutiny of the international scene over the past ten years has revealed various cases of corporate failure, facilitated by fraudulent manipulation of accounts by managers and with the implication of accountants in some instances. This manipulation is often referred to as cosmetic accounting. These cases have necessitated the examination of the consequences of these fraudulent practices. The study obtained primary data from accountants in Nigeria. Findings from the study show that respondents are aware of cosmetic accounting and that it is unethical. The results also indicate that the investors suffer as a result of decisions made using a doctored financial statement. Evidence also exist that management and auditors of corporate enterprises have a role to play in ensuring high business and ethical standards in order to guide against cosmetic accounting.
Description
Keywords
Cosmetic accounting,, public confidence,, business failure,, Nigeria
Citation
Fagbemi, T.O. & Olaoye, J.A. (2011). Cosmetic Accounting: A review of Literature and Perception of Accountants in Nigeria. Journal of Arid Zone Economy, 12(2), 132 – 140. Published by Department of Economics, University of Maiduguri, Maiduguri.