Creative Accounting in the Public Sector: Detecting, Cleaning Up and Renewing Financial Governance — Analysis from a Moroccan Case Study

Abstract

Creative accounting in the public sector represents a hidden threat to financial transparency and budgetary sustainability. This article explores the mechanisms, motivations, and impacts of creative accounting practices within public entities through a dual theoretical and empirical approach. First, a critical literature review conceptualizes the various forms of accounting manipulation and highlights their detrimental effects on governance. Second, a practical case study, based on an audit mission conducted by the author within a Moroccan public organization, illustrates the anomalies identified and the corrective actions implemented. The analysis shows that creative practices, often driven by political or institutional pressures, undermine the quality of financial reporting and weaken democratic accountability. In response, the article proposes a set of remediation strategies, combining technical corrections, strengthened internal controls, the promotion of an ethical culture, and the modernization of financial information systems. This research emphasizes the need for a robust regulatory framework in public accounting to restore citizen trust and ensure responsible and sustainable financial governance.