Significant Of Positive Accounting Research Essay


Discuss about the Positive Research Accouting.



This report contains all the details regarding article of positive research accounting. With the help of this article, writers, researchers and other viewers could easily evaluate the merits and demerits of positive accounting research. There are several fact, several theories and accounting concepts has been used to reflect the human behavior and their tendency to make decisions. In addition to this, there are several models and theories have been implementation of positive research accounting which is used by accountant for summarizing, classifying and recording of financial transactions. There are several theories and models such as hypothetical test and human decision making model have been used to provide standards outcomes for mitigating accounting and auditing problems. The main focus has been made on ontology and epistemology of positive accounting which is taken into consideration for assessing human behavior and their reciprocal behavior tendency. They key concept of this article is to provide a clear understanding on the positive accounting research and its key factors such as human decision making, errors an mistakes and other conceptual framework. There are several set format and theories which establish cause and effect relation of humans and auditing functions. The structure of this report is consisted with several parts. It would start with research questions which will provide core of this whole report, Then after, a significant study has been prepared for summarization and classification of all the theories and models of positive accounting research (Brown, Preiato, and Tarca, 2014).

Summary of article

This article of positive account research has been prepared on the basis of human behavior and their behavior to eliminate possible problems and hurdles in accounting issues and reporting. There are several conflicts and accounting issues which have been faced by auditors and accountant. These different viewpoints and assumptions have aroused due to different human behavior of accountant and auditors in their accounting frameworks. There are several casual theory and comprehensive viewpoints which divulges that every accountant and auditors have different viewpoints and perception in preparing and reporting of financial statement. Positive ontology and epistemology have also been described in the mid of this article which depicts that human behavior and different cause and effect relation. It is observed that it is the major reasons which result into variation in human behavior, decisions and assumptions. All the data collected in this article is from qualitative research process on positive research accounting which is used to provide preliminary interpretation on positive accounting research and human decision. In addition to this, the main emphasis has been made on the various remarks and models which have been used by accountant and auditors for recording and classifying of financial information. After that article has reflected the Hypothetical test which is used to provide assumptions and justification for the qualitative data in positive accounting research. (Ahmed, Neel and Wang, 2013). There are several facts such as reciprocal behavior, Self interest theory and Positive ontology and epistemology which have been used to make effective interpretation of the qualitative data. For instance, reciprocal behavior provides how cause and effect relation exist in the accounting works of organizations. Self interest theory also suggests that if a person is doing work in the organizations then he would be more concerned about his own interest than interest of organization. After that behavior of free will has also been discussed which provides that if accountants are not put under the control then they would follows different theories and models as per their choices? Gradually, it may result into contradiction in human behavior. As at the time of auditing of financial statement, auditors would find themselves hard to understand the concepts and theories which were taken by accountant to prepare financial statement of organizations. The self interest theory is also useful to determine the different perceptions and values and decision making criteria of two or more people in accounting works (Celestine and Maher, 2014). This article also provides that how accountant and auditors vary with their judgments when they are put under pressure. This theory is also justified on the basis of rational and personal behavior of accountants and auditors in positive accounting research (Waymire, 2014). It is given that cause and effect relation has been used and provided, if accountant are given more work to make effective level of classifying, recording and summarizing task under pressure then they would tend to complete that work within the less time limit. However, they will make mistakes and errors in their work when they are doing work under pressure (Brown, et al. 2014). Now it could be suggested that this article mainly focus on the different human behavior based on the different factors and circumstances (Everett, Neu, Rahaman and Maharaj, 2015).

Research questions

There are several questions have been taken on which this report has been made.

How positive accounting practice could be said to be different from intellectual program?

What are factors which could be considered by accountant in positive accounting research?

What are the models and theories which have been used in positive accounting research?

What is the effect of using ontology and epistemology in positive accounting research practice in positive accounting research?

Theoretical frameworks

There are several theoretical frameworks which are used to increase the effectiveness of positive accounting research such as hypothetical test, ontology and epistemology frameworks. These theories have been used to evaluate the human behavior and their cause and effect relation in positive accounting practice. This research has been prepared on the basis of various models and theoretical frameworks shown in this article (Engle and Hunton, 2015).

As per the views of Everett, Neu, Rahaman and Maharaj, 2015 it is provided that positive accounting research practice helps accountant and auditors to mitigate possible conflicts in their accounting practice. Ideally the main conflict between accountant and auditors arouse due to the different assumptions and theories used by them. Therefore, it is required by all the accountant and auditors to adopt standard theoretical frameworks and models in preparing and reporting of financial statements. Humans had to face several problems due to conflict of their decisions and perceptions. The theoretical frameworks have been prepared on the behavior of free will, hypothetical test and cause and effect relation theory. In the given theory, it is evaluated that if behavior of free will is followed by all the auditors and accountant then they would end up with having different conflicts between humans. In addition to this, other models and frameworks which could be used by auditors and accountant in this article are either in Americana or international which reflects standard models for gauging human behavior.

There are other several basic concepts and theories in positive accounting theories such as reciprocal behavior and behavior of free will. In this article main focus in made on Darwin’s theory of evaluation which reflects qualitative assessment and measurement in positive research. This Darwin’s theory of evaluation could be bifurcated into following several parts. The first phase of Darwin’s theory of evaluation is related with collecting primary and secondary qualitative data. These collected data is deployed by Auditors other stakeholders to evaluate on what basis accountant has prepared financial statement (Dyckman and Zeff, 2014). In Darwin’s theory of evaluation, focus is made to identify type- 1 errors (Li, 2015). It is considered that Type-1 error is not possible to avoid for accountant as per followed realistic approach. It is observed that if auditor uses realistic model then it would result into basic level of errors (Type-1 errors) (Deegan, 2017). There are other several models which have been used in positive accounting research practice such as Hypothetical test and ontology and epistemology (Slater, et al. 2014).

Significant of positive accounting research

There are several important factors which have been reflected in this research. This research focus on the core factors and human behavior in positive accounting research. The main significance of this report is to prepare deep understanding on positive accounting research and to evaluate the implication of positive accounting research in organization. This report reflects the main factors of human behavior and systematic frameworks which could be used for preparing financial statement of organizations. This research provides that there are several conflicts and accounting issues which have been faced by auditors and accountant. These different viewpoints and assumptions have resulted due to different human behavior of accountant and auditors in their accounting frameworks. There are other rational and personal practice in positive accounting research have been evaluated which reflects the human behavior and factors which influence accountant behaviors. (Guan, 2014). This positive accounting research has been used to analyze the possible problems and hurdles which are faced by auditors and accountant while preparing accounting and auditing functions. In the end it would be inferred that behavior of free will should be handled by each and every humans in determined approach otherwise it may result into several conflicts to humans in their decision making process. Therefore, this research has focused on identifying the vulnerability of positive accounting research and how accountant could use this practice to make their work effective.

Limitation of Positive accounting research

This report has been completed on the basis of data and information shown in the given article. In addition to this, researcher has taken help form other books, article and web based data to evaluate the core aspect so the article. There are several hypothetical data has been taken in this article which has no basis to justify. However, hypothetical test has been done on these data to justify its relevance and reliability. There are various models and theories which provides the tendency of humans in decision making process. There is no possible escalations have been taken if there is find any variations in assumption taken on accountant works and other required factors (Smith, 2014). Moreover, ontology and epistemology theories are completely based on believes of free will which provides that there could be different results in the same work assigned to different people due to behavior of free will. It is provided that if accountants take their decisions based on the free will then it would surely result into conflict of judgments between accountant and auditors. This article does not contain brief overview on the human tendency and reciprocal behavior which could be used to justify the hypothesis test undertaken in this article. There are other several limitations e.g. reliability of data, assumption based frameworks and behavior of free will (Bertomeu, Darrough and Xue, 2017).


This article is consisted with several theories and methodologies which provides deep understanding on ontology and epistemology of positive accounting research. There are several theories and accounting standards which have been used in this article to evaluate accountant decision making process in positive accounting research. This theories and models are used to establish harmonization in accountant and auditors functions. It is observed that there are several errors and mistakes in reporting and accounting frameworks. Hypothetical test used in this article provides that in order to complete the theoretical prospectus of accountant behavior and their decision making process there is need to come up with some hypothetical data to justify the qualitative positive accounting research. There are interchangeable factors which are used in this article to establish cause and effect relation for determine accounting process of accountant. It is also evaluated that accountant and auditors face complexity in their working process duet he behavior of free will. Therefore, in the end it could be inferred test statistic under the null hypothesis is dependent upon auxiliary assumptions which is taken as limitation of this article. It is observed that if auditors and accountant work on taking less assumption and models then there will be fewer chances of mistakes and errors in their working process.


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