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You normally used the '–ing' form of a participial adjective to describe a certain event that is the cause or reason of the feeling or reaction: an interesting research/account, for example. On the other hand, you use the ‘-ed’ form to describe the person with the feeling or reaction: I’minterested in the research, for example.
“The children gave a confusing account of what had happened.” is a better way to write it.
This sentence 'The children gave a confused account of what had happened.' comes from OXFORD ADVANCED LEARNER'S DICTIONARY. That's why I feel puzzled. It says: confusing:difficult to understand, not clear
The instructions on the box are confusing.
a very confusing experience
confused 2: not clear or easy to understand
Thechildren gave a confused account of what had happened.
You see, the two explanations are much the same so that I feel confused!
I just searched on the reference.com web, and got 98 results of 'a confusing account' and 296 results of 'a confused account'.
Confusing would be for an event that makes you feel certain way.
A good example of this would be: what an interesting game. The game
would be the event and saying it is interesting would be the
feeling, which proves the game being interesting is an event that makes
you feel a certain way; therefore, confusing has to be used with an event.
Yes, I could see the confusion. Here’re are few more confusing (*confused) examples from some of the dictionaries:
A confused set of instructions. (I like to see ‘confusing’ here.)
A confused mass of papers.
The instructions are terribly confusing.
Sent confusing signals to Iraq.
I agree with saintlatino’s use of the ‘-ing’ form of the adjective in his examples: An interesting (*interested) game, a confusing (*confused) event.
I could cite more examples:
An encouraging (*encouraged) experience.
A frightening (*frightened) account.
A frightened (or frightening) individual who gave the confusing (*confused) account. (There’s difference in meaning.)
Somehow I think there might be a difference in meaning (or none at all) between confusing account and confused account if both were equally acceptable.
a confused account, a confusing account 
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