Final answer:
Professional accountancy and regulatory bodies have implemented various efforts to address unethical practices in creative accounting techniques, such as the development of codes of ethics and the establishment of regulatory bodies. The Sarbanes-Oxley Act in the United States and the Financial Reporting Council in the UK are examples of measures taken to ensure integrity and transparency in financial reporting.
Step-by-step explanation:
In response to unethical practices related to the use of creative accounting techniques, professional accountancy and regulatory bodies have implemented various efforts. One notable effort is the development and implementation of codes of ethics by professional organizations and regulatory bodies in the accounting field. These codes outline the ethical obligations and standards that accountants must follow to ensure integrity and transparency in financial reporting.
For example, in the United States, the Sarbanes-Oxley Act was enacted in 2002 in response to major accounting scandals involving companies like Enron and WorldCom. This act imposes stricter regulations on public corporations, including requirements for independent auditing and enhanced financial disclosures.
Another effort is the establishment of regulatory bodies, such as the Financial Reporting Council (FRC) in the UK, which regulates auditors and sets auditing and ethical standards for accounting professionals. These bodies play a crucial role in monitoring and enforcing ethical practices in the accounting profession.