State of the Art of Behavioural Accounting Research Literature review

State of the Art of Behavioural Accounting Research - Literature review Example Several academic writers and professional institutes have paid utmost attention towards the state of the art of behavioural accounting research wherein the prime intention has always remained focussed towards identifying the research assumptions of the same, which usually imposes considerable impacts on the decision-making procedure of accounting. Contextually, behavioural accounting assumptions help in preventing cognitive limitations in case of accounting and auditing, as it primarily emphasises understanding reasons to biases in the procedure and hence, offers better scope for enhancing transparency therewith. On the other hand, behavioural accounting assumptions also assist business organisations to maximize their expected utilities. Additionally, behavioural accounting theories also help an organisation to attain profit maximization in a more effective manner (Gillenkirch & Arnold, n.d.). According to the viewpoints of Gillenkirch & Arnold (n.d.), the behavioural accounting theory is utilised in preparing internal financial reports. Larger organisations are also involved in using the approach of behavioural accounting with the aim of preparing and disseminating financial information to the potential investors. In alignment with the above context, it can be inferred that behavioural accounting concepts help the global organisations to conduct their respective financial as well as management accounting procedures more accurately. It is therefore worth mentioning that with the assistance of behavioural accounting concepts, modern organisations are able to effectively implement the principles and guidelines of financial (external) auditing functions. This, in turn, supports them to utilise their respective tax accounting mechanisms more accurately (Gillenkirch & Arnold, n.d.). The prime objective of this study is to identify the key assumptions