Accounting Theory and Relation of People’s Behaviors †Free Samples

Question: Discuss about the Accounting Theory and Relation of Peoples Behaviors. Answer: Introduction The papers principal object is the examination of the validity and existence of the positive research comparison together with positiveaccounting to conclude on the relation of peoples behaviors and alsoaccounting settings. The papers targets are into drawing a meaningful conclusion while undertaking testing by using statistics and hypothesis tools. Critics are targeting the understanding of deficiencies and areas needing improvement on the research of models and also techniques. (Dunmore, 2009). The principal reason behind this argumentation is discussed with various results of coefficients and regressions. Its worthy to test whether positiveaccounting is accomplishing its goals and objectives or not while its been used widely these days (Lapsley, 2012). The matters that are being discussed here are samples from good papers, prospects of potential and positive accounting as discussed in the kuhnian crisis and revolution. Summarizing the justification of real reasons behind the reaso n why positive accounting research hasnt been able to accomplish its total potential which is been justified by critics. Summary of the Article Human being have different perception as per different scenario, they are logical. Hence, human beings never react the same way in two same situations; human beings react based on the circumstances and situations. Various situation leads to a different course of action. The difference in the matter and the factors lead us to various responses to the scenarios. Shortly, its more related to the type of situation. Different religious beliefs are examined and various scientific researches have been undertaken which results that the whole world is rational. All acts dont matter if theyre right or wrong is based on specific actions (Hopwood, 2007). The main object of this paper is the argument of human behavior and inquiries on scientific research. This paper will offer suggestions which could be of help in achieving the increased effectiveness of the positive research. There are many different research models based on positive research assuming human beings act rationally but never in the same cases or situations. The fundamental concept is applicable in almost all cases at the end the results suffer significant variations. The mistakes that happen are traced by the auditors. Management continues making faulty decisions that puts the entire flow at risk. Its very imperative and designated to happening cause therere some maters being considered from different perspectives and hence, also being pointed out by auditors leading to errors caused by management. Through different methods been applied understanding reactions coming from auditors basing themselves on human behaviors still are true reasons behind the above which hasnt been ascertained to these days. However, selecting samples picking them up for hypothesis is very important. These samples are in need on being corrected otherwise every research may not appear in correct directions (Tinker et. al, 1982). The highest important objective must be put to test and compared to different theories than to test just one theory under different conditions. The differentiation between two or various techniques is very important because they lead to better responses and any decision can be made regarding the selection. This paper is focusing in a more specific theoretical models needed. This is due to the fact that researchs need to be accurate because all decisions depend on them. Hence, in the view of different circumstances, its very essential that models development should get done attributing the benefits of researchs and the influence on the management (Christenson, 1983). The concepts of measurement are not well defined. As results coming from the testing if this is not done as required. Hence, it suggests the estimation of parameters. When the parameters are put to definition in a successful manner, it will provide strong support to all the decision making process. One disciplined and better defined activity of researching can be induced only if new concepts on measurement would be suggested. Thus, accurate concepts on measurement along with very limited research will be helping on the achievement of the objectives (Antle et. al, 2006). Research Question Examination of the effect of positiveaccounting research is the search question this article is focusing on and also targets the existence identifying logical or previously defined notions basing themselves in which all accountants and auditors make decisions very accordingly. One hypothesis test is conducted and samples are taken to the audits fees charging on the size of the audit firm and its challenges. These tests are being conducted to exanimate the basis of these audit fees, the use of regression techniques and also strategy used by all auditors in presentation of reports prepared by them and only them (Frankel et. al, 2002). The hypothesis is also based on quantities research, further beyond, only qualitative research tests whether auditors follow theatrical frameworks or also the validation of these frameworks and its relevance based on the report published. Results coming from it automatically are proof of both hypothesis and testing cannot be fooled ever and will not be ap plied practically. Hypothesis targets proves null hypotheses are wrong although results are based on samples. The big picture cannot be red mentioned through this process. This proves testings based on hypothesis are the providers of weak evidence. Thus it results in creating a doubt on the established facts. All the facts and measures cannot be depended as it is based on weak evidences. The facts can never be considered as accurate because of the sampling and the method. Although we are unaware of the facts as to which one is correct and which one is not. Hence, the hypothesis does not play an important role in the positive accounting research thereby stressing on the fact that the research does not provide a huge support to the positive accounting system. It seems to be identified wether positive accounting research is able to meet its targets or not. Wouldnt be wrong if we said that it would be very surprising to see theories succeding based on qualitative and quantitative research models (Dunmore, 2009). Theoretical Framework Accounting entities behaviors and auditors are never a match. It results to different behavioral paths which are being under observation in research and hypothesis conduction. Even though accountancy profession is governed by a big set of rules which is required to be well follow by all accountants and all accountants need to be depending on these set of rules in the accounting standards as issue by ministry of corporate affair and the chartered accountants institute still going through the research from these standards which can never suffer avoiding (Watts Supreme, 1986). The principal reason behind all research is deviation from all given rules set provided. Rigid rules cant be overlapped however, situations leading to deviations from rules are there, and results might not be obtained. All research is interdependent. To make tests of the positive accounting effectiveness the methods we must use are hypothesis and statistics.it cant also be avoided or mistaken, as therere flaws in relation to statistical methods which returns are due to conditions behind all hypothesis as null hypothesis, and also its occurrence probability (Ahmadi, 2011). This has already been mentioned earlier saying hypothesis results are depending on samples chosen to conducting hypothesis. Therefore, there are well-known facts of sampling plays the main role in every hypothesis. Samples chosen may not be right and hence wouldnt necessarily reflect the big and true picture of all total population. Samples may also get selected according to defined sets of parameters, however that particular sample may not have any relation to the while population sets and thereby comment on the whole population, by the help of samples this is not a rational judgment (Hopwood, 2007). Theres other loophole in association to the test of hypothesis being under conduction for researchs given. The second drawback will be that one alternative hypothesis is being put under consideration to compare and if it results to be weak then the results will not be effective as it might be proof of consistence with all different theories (Kaplan, 2011). At times, happens that each system is weak and not able to the generation of results in that case, the objective might fail and be unable to provide the accurate results. The Significance and Limitations of the Article The description with details of all testing and hypothesis methods above show us the clear picture where there are a lot of limitations to all those methods. To overcome these limitations an approach which is more advanced and practical will have to be applied and adopted thoroughly (Broadbent, 2010). This means a lot of research is required in the field and then a decision is needed to be undertaken. The author has very well identified the limitations of the testing methods as the critic of the concept is very well presented by the findings of the various authors. The author has concluded using theoretical assumption from the research being conducted based on the statistical methods that positive accounting research is not being able to achieve its aims and objectives. It is also being proved that the human beings act rationally hence the accountants and the auditors also give their reactions based on the facts and circumstances (Francis, 2006). Hence it also helps us in giving a better understanding of the fact that the methodologies used for testing are not useful in providing any meaningful solutions which could help in the contribution to the positive accounting research. Therefore, the development of a model that is more integrated is the need of the hour. It will help in providing stability to the research and lead to a better course of activity (Ashton et. al, 2004). However, it is really important to note that the author helped in discussing, identifying and providing the solutions that would help in a successful research program rather than only focusing on the limitations of the testing done on the basis of the hypothesis of the positive research program (Deegan, 2009). The methods suggested are analytical models, focus on measurement, replication, and using qualitative samples rather than the quantity. It also helps in understanding and knowing how a theoretically strong framework can be made and implemented to achieve its results. Therefore, the article stresses on ideas regarding the development of a framework that will be result oriented and will help the profession in the long run. Moreover, it is really urgent to have a strong model in practice so that the accounting profession is benefitted through it. The discussion clearly states that there are deficiencies in the system and it needs to be removed by brining a strong model into practi ce otherwise the very objective of research will prove to be of no avail. Conclusions The paper helps us in gaining an understanding that though positive accounting research has its limitations still it can be published though it deviates from its objective. Though it is diverting from the actual standard it also helps us to identify that a further research may occur which would definitely help in improving the quality of the positive accounting research and which would be beneficial to the profession of accounting and auditing both. There are various theories that are not challenged as because it is being assumed that these theories are applicable though they have never been experienced by anyone till date in the practical world of today. However, it is nowhere to conclude on the point that though there are deficiencies that exist in the social system but still the scope of further research in order to improve the accounting and auditing profession cannot be made limited. And there will always be a hope for the much better social system which would be in the pace wit h the growing knowledge and technology. This needs to be taken into consideration and a new model should be framed that will help in a better course of activity. References Ahmadi MR 2011, Comparative analysis of grammatical approach and positive approach in the process of theorizing about knowledge accounting, Journal of Financial Accounting, vol. 1, no. 1, pp. 71-88. Antle, R, Gordon, E, Narayanamoorthy, G Zhou, L 2006, The joint de-termination of audit fees, non-audit fees, and abnormal accruals, Review of Quantitative Finance Accounting vol. 27, no. 3, pp. 235-266. 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