Positive accounting research is that part of the broader intellectual project of scientific research that aims to understand and explain the cause and effect interconnections in the world. Moreover, it positive accounting research is a properly established social system that is not properly framed for contributing to the significant research project, then its exact purpose can be different. Therefore, the use of positive accounting research is an argumentative topic and this paper aims to highlight the human characteristics through the utilization of various methods related to hypothesis and statistics (Deegan, 2011). Furthermore, various insufficiencies in the statistical methods are also intended to be stressed by this paper. Besides, various alternative measures are also depicted through the paper that can assist in pointing out the complications in the current measures, thereby resulting in creating a stronger positive accounting research as a whole.
This paper intends to take into account different traits of a human being in order to make an efficient evaluation of the same. Besides, such human traits behave differently in different circumstances, and thus several other aspects are intended to be focused on this paper, as it plays an important part in affecting the reason making ability. Further, both human acts and practices are subject to change by such aspects that depicts a changed human behavior in different scenarios (Maines & Wahlen, 2006). Thus, an individual is influenced by a sagacious point of view and this is the major reason of positive accounting research because the reaction of an individual relies on the scenario.
The prime cause of difficulty in the determination of human’s rigorous objective can be attributed to the fact that everything is controlled by a system. In other words, since accounting and other activities tend to be more technical in the situation, a sharp decline in human beings’ interactive activities can be witnessed. In addition, since system plays a major role in most of the cases and human behavior is subject to change by several aspects, the behavior of human has become difficult to be adjudged (Fogarty & Markarian, 2007). Besides, this assumption altogether plays a key role in disentitling the theory of positive accounting research in order to make an efficient contribution towards the society.
The ultimate focus of this paper is to offer an enhanced suggestion in relation to the theory of positive accounting research. Moreover, because both outcomes and anticipations are significant, this paper attempts to maximize the efficiency of the research by exploring the activities of positive accounting research in a more effective way so that appropriate suggestions can be offered. Research models like hypothesis and statistical measures have been taken into account in order to assess the scenarios wherein an auditor reacts, and that is associated with the previously mentioned assumption of sagaciousness (Francis, 2006).
In relation to the hypothesis research model, the outcome concords with the selected samples, thereby creating a situation, wherein the objectives become difficult to be procured. Therefore, with the effective assistance of this paper, it can be highlighted that the role played by two variables is not sufficient in order to determine the relationship and that it demands more. Moreover, instead of evaluation, a theory in relation to the hypothesis research model, the most significant necessity must be to assess different theories that can compete with each other. Another reason why assessment of different theories is entirely relevant is that it can play a prime role in determining the status by highlighting the present practices (Clikeman, 2002). Therefore, on a whole, this paper attempts to present a more efficient model that can be specified on a higher level and is stricter in nature.
In addition to the above requirements, the methods must also be powerful so that the examination can be sagacious in nature. Furthermore, it must not incorporate any kind of biases or errors so that the desired level of outcome can be easily attained. Besides, if the model is not powerful, the examination cannot be free from such errors or biases. Tie-ups of dependable nature must also be prepared together with different proxies so that a more powerful linear relationship can be highlighted, thereby facilitating in the ascertainment of effective measurement strategies (Ittner et. al, 2003). This, in turn, sheds light on the fact that the research paper solely does not intend to focus on the hypothesis concept, and instead, it plays a role in establishing an enhanced situation for the forecast of parameters. On a whole, it is necessary to develop new concepts that can assure an effective research activity.
The research question relates to the evaluation of positive accounting research and if any strategy or suggestion is prevalent in order to allow an auditor and accountant to function. However, it comprises of many disadvantages. In relation to hypothesis model, its examination is completed by considering samples of the chargeable fees of audit in opposition to the firm size and audit complexity (Hay et. al, 2006). This is a major type of quantitative research that assists in examining the method by which changeability of audit fees has been done so that effective use of techniques can be facilitated. Besides, this model is prevalent so that the type I error can be tracked.
On a whole, it must be noted that the critical assessment of hypothesis model cannot be perfect. This is because the hypothesis model intends to illustrate that the null hypothesis is imperfect as the outcomes are interconnected to the sample (Dunmore, 2009). Therefore, it can be concluded that the examination of the hypothesis cannot offer an effective proof, especially in the scenario of examining an alternative hypothesis model. Hence, in relation to the theory of positive accounting research, such hypothesis value is not a big issue. Nonetheless, the literature review assists in seeking whether the research is capable of procuring the various aims and targets.
In relation to the audit and accounting practices, there are various statutory or regulatory compliances called the accounting standards, which must be taken due care of. Moreover, in order to establish a stagnant framework of operations, it is vital to comply with such requirements and take steps to ensure that no important materials are disregarded (Humphrey, 2008).
However, in reality, there are various auditors or accountants who fail to comply with such rules and regulations, thereby generating several complications for the future. Nevertheless, this paper attempts to take into account such requirements so that the reasons for differences can be determined. Several factors can assist in determining these differences. For instance, human factors play a role in offering the independence and rigorousness of thought of every performing individual (Dunmore, 2009). Moreover, this can result in biases and errors that can ultimately result in changing the desired course of operation.
Furthermore, for the basis of this article, such previously mentioned behaviors are very relevant. Moreover, in order to avoid influencing the framework, investigation, and examination of such human tendencies and behavior can be done. For this paper, the hypothesis model has been selected and a sample size has been considered with a presumption that it can highlight the population (Tinker & Neimark, 1982). However, in order to make this strategy work efficiently, every possibility must be considered so that the misrepresentation incorporated in the outcomes can be ruled out. This can assist in avoid scrutinizing every variety, thereby offering an average cross-evaluation between every scenario, and that is easier to accomplish.
Although the previously mentioned method can be efficient, yet it cannot be concluded that a perfect outcome can be obtained because every statistical method has its own advantages and disadvantages. Besides, the hypothesis model can take into account one single scenario whereas more than variable can be considered in an audit procedure. Although an audit process looks simpler, yet it is far more significant that restricts the research from being distorted.
Positive accounting research has a significant contribution to provide to the broader project of understanding human behavior due to its unique setting and specific range of behaviors that accounting encompasses (Christenson, 1983). However, various flaws prevalent in the system have been highlighted with the help of this paper. Although the present system is not efficient, it has made way for further discussions. Furthermore, this research is imperative in order to facilitate for additional system enhancements. Studies portray that human behavior is generally sagacious in order to enhance the advantages of a scenario.
Moreover, this paper also has its disadvantages. First, this paper has altogether concentrated on the major portion of the thesis, and have facilitated in offering more valuable suggestions and examples in order to provide more effectiveness to the research. Furthermore, the paper considers the present theories to be real and implements it. However, these theories have highly enhanced over time and not been examined since then. This sheds light on the fact that enhancements are the need of the hour and in order to mitigate the limitations of the research, the level of study and research must be highly developed (Watts & Supreme, 1986).
Various statistics models play a role in offering distinct outcomes and since accounting is subject to several limitations and variables, the errors of measurement are vital to be taken into account. Furthermore, an effective representation of samples is also relevant because it assists in offering a true picture of the entire population. Besides, scrutinizing an entire population with the help of a sample can present its own restrictions and limitations that must be duly taken into consideration prior to evaluating the outcomes. On a whole, this proves to be one of the biggest limitations that must be taken into consideration as the sample may fail to depict the true or real attributes of the population.
Conclusion
This paper has endeavored to present the viewpoint of the current theory of positive accounting research. It has offered an understanding that the intensity of the present accounting research is not sufficient, thereby failing to procure the desired outcomes. Therefore, it generates an urgent necessity to implement a more systematic and effective strategy that accommodates methodological measures in order to achieve the desired objectives more efficiently. Besides, better theoretical models that are highly specified and highly vulnerable are the need for the hour. The disappointing enhancements being made in the positive accounting research is a direct result of utilizing ad hoc quantitative models that are minimized to mere statements of the anticipated signs of interconnections betwixt two variables (Hogget et. al, 2012).
The restrictions and disadvantages of this study can also be taken into consideration for enhancing the efficacies of this field, as well as the various opportunities deriving from the research can also be utilized in order to establish a more uncompromising and sound theoretical framework. On a whole, the system of positive accounting research must keep moving forward because the development of innovative techniques over time can enhance its efficacy and validity in order to make it capable of aligning with the surrounding.
References
Christenson, C. (1983). The Methodology of Positive Accounting. The Accounting Review, 14(4), 1–22.
Clikeman, P.M.. (2002). The Quality of Earnings in the Information Age. Issues in Accounting Education, 17, 411-417.
Deegan, C. M. (2011). In Financial accounting theory. North Ryde, N.S.W: McGraw-Hill
Dunmore, P.V. (2009). Half a Defense of Positive Accounting Research. Massey University, Wellington, New Zealand
Fogarty, T. J., Markarian, G. (2007). An empirical assessment of the rise and fall of accounting as an academic discipline. Issues in Accounting Education, 22(2), 137–161
Francis, J. R. (2006). Are auditors compromised by nonaudit services? Assessing the evidence. Contemporary Accounting Research, 23(3), 747- 760.
Hay, D. C., Knechel, W. R., Wong, N. (2006). Audit fees: A meta-analysis of the effect of supply and demand attributes. Contemporary Accounting Research, 23(2), 141- 191.
Hogget, J., Edwards, L., Medlin, C & Tiling, M. (2012). Financial accounting. John Wiley
Humphrey, C. (2008). Auditing research: A review across the disciplinary Divide. Accounting, Auditing & Accountability Journal, 21(2), 170- 203.
Ittner, C. D, Larcker, D. F, Meyer, M. W. (2003). Subjectivity and the weighting of performance measures: Evidence from a balanced scorecard. The Accounting Review, 78(3), 725-758.
Maines, L. & Wahlen, J. (2006). The Nature of Accounting Information Reliability: Inferences from Archival and Experimental Research. Accounting Horizons, 20(4), 389-425.
Tinker, T, B & Neimark M. (1982). The Normative Origins of Positive Theories: Ideology and Accounting Thought. Accounting, Organizations and Society, 167–200.
Watts, R. & Supreme J. (1986). Positive Accounting Theory. Edgewood Cliffs, NJ: Prentice Hall.
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