Auditing Concepts Accounting Theory and Application

Question: Discuss about the Auditing Concepts for Accounting Theory and Application. Answer: Introduction The study elucidates aspects of positive or renders scientific approach aligning with accounting research. In other words, focus has been given on defining the major objectives pertaining towards human behavior causes and making the necessary accounting settings. The study is based on an article titled as Half a Defense of Positive Accounting Research (Dunmore 2011). This article explains the set of ontological and epistemological assumptions needed for scientific research for viewing at the feasibility aspects for intellectual projects. This is in regard with certain assumptions that turns out to be wrong, illogical or sometimes absurd in some cases (Watts and Zimmerman 2013). The present segment explains positive research in accounting especially at the time of defensive activities. In some cases, accounting becomes defensible in nature and hard to manage in the upcoming financial year. Therefore, the study enhances in gaining understanding over the level of progress and logics by using the data collection methods such as Qualitative and Quantitative Research (Wolk and Tearney 2012). Summary of the Article This study is based on an article titled as Half a Defense of Positive Accounting Research. The article aims at explain the auditing concepts rendering typical good work. This illustrates on how far practices falls short especially in case of Popper prescriptions (Warfield, Wild and Wild 2013). On the contrary, the article is summarized whereby qualitative researchers make use of theories and conduct hypothesis for testing purposes. It requires underpinning the observational findings aligning with the accounting research. Quantitative Researchers aims at conducting hypothesis testing that is less rigorous after comparing it with Popper prescription. It is combined featuring the detection of actual incorrect hypothesis by the quantitative researchers (Thomas 2014). On summarizing the article, it has been argued that both qualitative and quantitative research methods used for signifying much of a confidence after accepting the observational findings and mistaken ideas correctly. The un derlying success lies in the concept of positive accounting after understanding the artifacts of operations for setting the low standards. In Kuhn description, it is mentioned regarding the normal sciences that fit the major purpose of positive accounting research after comparing it with traditional sciences (Sorter 2014). Therefore, a final prospect explains the underlying fact when Kuhnian crisis as well as resolution takes place by way of explaining the positive accounting. Suggestions are made for rendering practical acts of resistance depending upon the existing system like bringing change in upcoming years. Summarizing the article elucidates discussing upon Kuhnian crisis and revolutionary aspects concerning liberation of positive accounting research for achieving high level of potential advantage (Mautz and Sharaf 2013). Henceforth, there will be many cases offered especially in practical acts of resistance depending upon existing system for bringing change management. This u ndertakes the prospects as discussed regarding Kuhnian crisis and revolution after liberation of positive accounting research in achieving the high level of potential (Scott 2013). It is important to claim the fact whereby Positive Accounting Theory is taken as broader sense concerned with research programs for developmental aspects in causal explanations of human behavior. In other words, this accounting setting compares with PAT existence in accounting research (Schroeder, Clark and Cathey 2012). Therefore, the study summarizes aspects of ontology and epistemology for investigative the programs. Some of the common problems mentioned include casual construction of theoretical models in order to test undue reliance considering hypothesis logics. This reveals lack of interest as presented in the numerical values of parameters and facing insufficient replication. It means gaining proper level of confidence after considering accepted findings as well as use of theoretical approach after examining qualitative data. As far as positive research in accounting is concerned, it deals with examining the large attributes for capabilities in achieving scientific objectives . Furthermore, Kuhn Description explains normal sciences that fit positive accounting research in the most appropriate way (Milne, 2012). After summarizing the article, it has been noted that positive approach explains the concept of accounting research (Mautz and Sharaf 2013). Addition to that, Positive accounting research aims at considering major part of wider intellectual projects especially for scientific research after gaining understanding for cause as well as effect relationship. This means describing the streaming critical accounting research that falls after defining the subject towards critical arguments. This means setting of accounting aspects that causes human behavior in multinational organization (Warfield, Wild and Wild 2013). It requires in undertaking face-to-face interaction after replacing less personal or personal systems in the final decision-making process. Therefore, it means understanding the aspect of importance and deficiencies of positive accounting research especially for wider intellectual projects. It means aligning the concepts based upon ontological as well as epistemological assumptio ns (Mathews and Perera 2014). Research Question Explain the concept of Positive Accounting Research used in accounting. Explain how positive accounting concept can develop causal relationship of human behavior. How Kuhn Description does explains normal sciences concerned with accounting research? Theoretical Framework According to Dunmore (2011), empirical question explains comprehensive causal theories of human behavior and limiting the theory application. Addition to that, there are given extensive areas specifies situation of actions of people in order to offer interpretive research. It means aligning positive, epistemology and ontology in explaining the theories. This means researchers aims at observing imperfections as modified in the social world after constructing potential actions (Littleton and Zimmerman 2012). As rightly put forward by Deegan (2013), scientific research considers data collection that can be either quantitative or qualitative. Some of the theories suggest accumulated data after showing the induction process based on certain assumptions. It means considering some logical support evidence from the acceptance theories as understood by Popper. Addition to that, there occur certain testing predictions of new theories by implementing new observations in certain situations. It means considering old and new theories and forming innovative predictions at the same time (Gray, Owen and Adams 2014). As opined by Dunmore (2011), Popper suggests new theories based on observed regularities as well as proved observations. It takes into consideration inductive observation especially for pure creative and imaginative process especially in empirical data. Addition to that, it includes testing of two theories n case of single theory concern. Therefore, it is argued that falsification means considering inoperable assumptions based on theoretical predictions. Therefore, theories are considered after falsification of anomalous tracks of Pioneer 10 and 11 spacecraft (Wolk and Tearney 2012). As rightly put forward by (Dunmore (2011) there are many science that influences different scale of parameters ranging from macro to mid-range activities in a given situation. Addition to that, it requires testing the descriptions like cause and effect relationship after considering understanding of accounting aspects. It should be kept in consideration involving qualitative sciences such as botany, geology and zoology as developed by Darwin theory of evolution. It was one of the common mistakes especially in social sciences after assuming quantitative research (Mautz and Sharaf 2013) According to Dunmore (2011), there are major two distinct purpose used for undertaking qualitative research by the researcher. Addition to that, it means collection of data for assisting ways in order to develop preliminary understanding of major phenomenon at the time of attempting quantitative measurement. In other words, it requires sorting out questions from positive context of audit pricing research (Warfield, Wild and Wild 2013). The current study focus on regression analysis for understanding the auditor pricing as presented in the audit report. Therefore, it means data gathering aspects after determination of tender bid, differentiating behavioral pattern, and presenting strategies adopted by audit partners (Wolk and Tearney 2012). Significance and Limitations of the article The major significance of the article is written in the version of Popper Logic. In other words, it requires measuring the test statistics used for viewing at the certainty as well as incompatibility of concepts from null hypothesis (Warfield, Wild and Wild 2013). It requires eliminating shifting of conventional significance for threshold attributes by keeping p as 0.00001. Therefore, it requires considering re-attribution of true positives after accepting statistical findings at the time of demanding for gaining stronger evidence. On the contrary, it has been noted that there are mainly two distinct motives behind replicating previous studies like determination of whether original results views at the sampling error. Addition to that, it explores limits for application of previous findings for future analysis purpose. Several significant factors are mentioned in the article used for hypothesis testing. It mentions literature aspects ranging with 1% to 5% after looking at the statistical issues. It requires viewing at the significant levels of misstated figures of regression specifications after publishing the specification. Authors aim at working diligently for trying out the alternative proxies and functional forms based on econometric assumptions. There are some of the non-significant data resulting from false positives after comparing replicating the work (Mautz and Sharaf 2013). There are various motivation concepts designing after replicating the study in a way by accepting samples. This means undertaking same proxies after taking the functional forms and satisfying the econometric assumptions for data collection process by using alternative specifications. It aims at focusing on attributes for testing the level of significance widely depending upon the sample size and residual variance at the same time (Warfield, Wild and Wild 2013). As far as limitations of the study are concerned, it requires huge improvement by the researchers for future scope of research. At times, it can be termed as a disappointing process at the time of conducting positive accounting research while directing towards the consequences (Mautz and Sharaf 2013). It takes into consideration aspects on ad hoc basis like implementing quantitative models after maintaining relationship between the two variables. There are various models used for actual analytical research in well-structured way. This requires extreme measuring the concepts in given subsequent studies after comparing it with re-invention of measurement. In other words, reliable audit measurement concerns with high level of complexity for estimating the parameters (Wolk and Tearney 2012). Conclusion From the above discussion, it can be understood that the article examines the aspects related to ontology and epistemology. In other words, it is regard with understanding the concept of current policies of accounting research as used for operating research programs. The current segment explains implementation of better theoretical models for detailed testing that is highly specified as well as vulnerable in nature. It requires better measurement techniques that should be rigorously tested after conducting theoretical models. Therefore, concepts explain careful implementation of making proxies for establishing reliable relationships. It means selection of correct functional forms of linear relationship between unique concepts. Reference List Deegan, C., 2013.Financial accounting theory. McGraw-Hill Education Australia. Dunmore, P.V., 2011. Half a Defence of Positive Accounting Research.Available at SSRN 1955419. Gray, R., Owen, D. and Adams, C., 2014.Accounting accountability: changes and challenges in corporate social and environmental reporting. Prentice Hall. Littleton, A.C. and Zimmerman, V.K., 2012.Accounting theory, continuity and change. Prentice-Hall. Mathews, M.R. and Perera, M.H.B., 2014.Accounting theory development. Nelson. Mautz, R.K. and Sharaf, H.A., 2013.The philosophy of auditing(No. 6). American Accounting Association. Milne, M.J., 2012. 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