Creative accounting is a growing concern in the UK, threatening the credibility of accounting and auditing auctions. The principle of truth and honesty, which suggests that companies must present a true and fair view of their operations, is now tolerated in favor of unethical practices. Although a variety of definitions of the term creative accounting have been suggested, in this essay I will use the definition suggested by Jones saying that creative accounting arises from the flexibility of accounting within the regulatory framework to manage measurement and reporting. presentation of accounts. so that they give primacy to the interests of preparers and not those of users (Jones, 2011, p.5). The purpose of this essay is to discuss the factors that influence creative accounting and those that constrain it. Finally and above all, what factors can help to constrain it, to regulate it, in order to avoid such actions. There are several reasons behind the creation of accounting that motivate managers to proceed with manipulation of numbers, the two most important are related to contracts and stakeholder performance. indicators. Most often, managers pursue financial engineering by manipulating specific ratios such as EPS and debt ratio. These ratios are regularly linked to restrictive covenants and remuneration systems, which have a direct influence on the behavior of managers because their personal interests are in conflict. Bonuses depend on meeting budgets and profit provisions, so managers manipulate financial results to achieve the desired outcome they need to get their bonuses. Continually, when there are restrictive covenants that restrict borrowing, this can lead to the setting of specific criteria such as the level of sales or the level of profits... middle of paper ...... ls. A company itself must pay attention to how a company is governed; shareholders must choose directors independent of the company to supervise the activities of the managers. Managers can easily be compromised when their personal interests are threatened. The most effective way for an investor to review a company's performance is through financial reporting, which should not provide false information or misleading results to shareholders. This is important because it will determine whether the investor will move forward with this transaction. In this range, auditors and analysts are responsible for publishing true and honest information about the company's financial condition. Leaders must develop an ethical philosophy in their company, showing what the pillars of the company are, where it stands and what its future goals are..