The Impact of Manipulating Management Accounting Tools on The ‏Strategic Capability of The Organizations of Iraq

Abstract

In the current context of a competitive and sometimes aggressive environment, companies increasingly need professionally trained human resources, material and financial resources, as well as advanced technological resources that allow them to better position themselves on the market, to be sustainable and to ensure a real picture of its performance in order to beat the competition and penetrate other market segments. In this context, the management of any company must update its strategies, operating methods, be able to anticipate, act and mitigate the consequences of practicing creative accounting. The purpose of this article is to present the impact of creative accounting on management accounting, as well as the perception of Iraqi professionals and students/masters on delineating the permissive side from the fraudulent side of creative accounting in view of the efforts that Iraqi regulatory bodies are making to alignment with international practice. The existence of high corruption, the need to adopt accounting based on commitments instead of cash accounting, the lack of transparency of accounting, the improvement of the budget law, the reform of the financial system, are just a few factors that reveal the existence of a fine line between the permissive side and the fraudulent side of accounting creative with an impact on managerial accounting.