The Warning Signs in Financial Statements of Creative Accounting in Financial Statements of Companies Listed on The Stock Exchange of Thailand

Abstract

This academic article aimed to study the warning signs of creative accounting in financial statements of companies listed on the Stock Exchange of Thailand based on actual situations both domestically and internationally by using the considering guidelines for warning signs of creative accounting in financial statements from the concept of agent problem, fraud triangle theory, corporate governance, and financial statement analysis. The collected data was summarized to create the warning signs of creative accounting in financial statements namely financial ratios, asset or liability creative accounting, account recognition of income or expenses, cash flow from operating activities, transactions between related companies, transactions of management manipulation, the independence of the company's board of directors, motivation, opportunities, and the reasons for misconduct, independence of the auditor, and opinions on the auditor's report. The result can be beneficed for investors to be aware of investment information, financial status, the actual operating results of the companies, the effectiveness of the corporate governance principles, and the precautions in the auditor's auditing work.