Quality and reliable accounting information is the basis of rational business decision-making. However, various manipulations of the profit and loss statement and the balance sheet have resulted in a high level of distrust toward the financial reporting system. The Cash Flow Statement has been considered less susceptible to manipulation for many years and as such has been used as an indicator of profit quality. However, potential investors and other users of financial statements should be cautious as a number of different creative accounting methods and techniques have been developed in the Cash Flow Statement. Most manipulated with is the cash flow from business activities as the main indicator of the company's financial "health". The aim of this research is to present methods and techniques of creative accounting, especially in the Cash Flow Statement. The theoretical part of the paper delineates ways of presenting and compiling the Cash Flow Statement and emphasizes the importance of information obtained through the Cash Flow Statement. The very concept of creative accounting is defined and the methods and techniques of applying creative accounting are listed. Primary motives for the application of creative accounting in financial statements are also presented. Finally, early warning signs of fraud are introduced and some of the more well-known accounting scandals are discussed. The empirical part of the paper refers to concrete research regarding the application of creative accounting methods and techniques in the Cash Flow Statement. The survey questionnaire collected data about the attitudes of accountants concerning the Cash Flow Statement and the application of creative accounting in the Republic of Croatia. The provisions of IAS 7 have been shown to favor the application of creative accounting in the Cash Flow Statement. Mostly it is the cash flow from operating activities that is manipulated with as an important source of information about the company’s operations.