Attestation Update – A&A for CPAs

Technical stuff for CPAs providing attestation services

That insightful flash of creative accounting? Maybe not a good thing.

with 2 comments

At the 2011 A&A conference, Suzan C. Dennis, CPA, had a great comment.  I’ll summarize and expand her idea:

If you have a flash of brilliant insight on a new and creative way to account for some issue, you may have a bad idea. 

Venture very far down this path of brand new alternative ways to deal with an issue that no one has ever thought of before and you can wind up in the land we call fraud.

The answer is not always yes, but here is the general question that we need to keep in mind:

  • Creative accounting = fraud?

Written by Jim Ulvog

November 10, 2011, 7:25 am at 7:25 am

Posted in Accounting, Fraud

2 Responses

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  1. […] we are working with constraints of tax reporting and GAAP, perhaps we ought not be too creative. That insightful flash of creative accounting? Maybe not a good thing. If you go too far off the edge of the accounting and tax map, there be […]

  2. […] we are working within constraints of tax reporting and GAAP, perhaps we should not be too creative. That insightful flash of creative accounting? Maybe not a good thing. If you go too far off the edge of the accounting and tax map, there be […]


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