Accounting Development and Theory: Testing of Theory (Criteria for Truth- Self Evidence) It’s Sociological Effects
This research is an attempt to identify accounting development and theory: testing of theory (criteria for truth- self evidence) it’s sociological effect from the legal dimension. There is a huge gap in the literature in this regards as research in this subject are very much inadequate. The concept of the law of evidence and its relation to accounting theory has a long history as it affects the society. In this regards, accounting evidence is information gathered from company’s financial statements that have been prepared with reference to financial transactions, formidable internal control system and other issues required for forming opinion on financial statements by a certified auditor. In 2010 IAASB modernized two standards related to audit evidence which include ISA 501 `Audit Evidence Additional Considerations for Specific Items and ISA 500. The research identifies several legal channels to development of theories accounting and its impact on the society. Finance theory states that lawful societies vary primacy given to private property rights, which in turn affects financial development, as these rights forms its foundation, accounting development history and its impact on the society is general explained by gritty variance explanation in legal tradition. The law and finance theory advocate that lawful adaptableness channel emphasizes custom variance, stating that their capabilities to adjust to varying situation and since rigidity has resulted in gaps among lawful competences and financial requirements, archeologically indomitable variance in lawful customs practically elucidate accounting development today. Additional empirical work is required to drive down research on the effect of accounting theory on the society.
Keywords: Accounting Development, Accounting Standards, Accounting Theory, Sociological Effect, and Truth Criteria
