This study accounts for creative accounting as one of the challenges that has significantly undermined the credibility of financial reports and, by extension, lowered trust in the financial markets. An attempt is made to analyze their motivations, various forms, and roles that artificial intelligence (AI) could play in mitigating creative accounting and enhancing financial integrity. In addition, it outlines how modern technologies such as machine learning and big data analytics can help financial manipulation be detected and quality assurance done on financial reports. Creative accounting was found to be employed by several managerial teams under varying motivations aimed at achieving short-term gains which are potentially misleading to investors and stakeholders hence a negative impact on the stability of the financial markets. Several techniques used here were caught, like playing with the timing of revenue recognition, unwarranted profit inflation, and hiding debts—habits that make it tough to spot creative accounting using usual auditing ways. The research revealed that artificial intelligence, by virtue of its capacity to analyze extensive volumes of both financial and non-financial data, is proficient in identifying irregular patterns that may signify financial manipulation, thus promoting enhanced transparency and accuracy within financial reporting. Furthermore, the findings indicated that organizations that integrate artificial intelligence technologies into their accounting frameworks attain superior compliance with international financial standards and experience heightened confidence from investors. In view of these conclusions, the study advocates for an increased implementation of AI and machine learning within accounting systems to mitigate the potential for creative accounting practices. It also recommends the fortification of accounting laws and regulations to curtail financial manipulation and ensure compliance with ethical standards.