erent kinds of ethical. Accountant may failure as the accountant because of his personal character, like he intend to steal company asset; Accountant may confront ethical issue by conflict of personal values and organizational goals, he should not take company information to generate his own wealth; Accountant always face such situation that the organization goals can not consist with social values. The famous Enron-Andersen case is an example. Anderson compromise its ethics standard to meet the requirement of Enron and generated manipulated financial report. When the whole thing was discovered, both Enron and Adersen disintegrated.
             In the reality, accountants have flexibility to choose the particular option or accounting methods. All these flexibility increase the chance as creative accounting. Just recently, Moco, the third biggest pharmacy in the world, was acknowledged that it made a false revenue of USD12.4billion, which equaled 10% of its total operating result in the past 3 years. Actually, Medco, the sub-company of Moco, recorded the medicine fund of patient as its revenue, but actually, this fund has nothing to do with the sales revenue. This misleading financial report distort the real operating result, thus cause the economic loss of report users.
             Creative accounting can be defined as ¡°a process whereby accountants use their knowledge of accounting rules to manipulate the figures reported in the accounts of a business¡±(Catherine & John, 1998 P24). During the process of generating fi
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