Introduction

This introduction presents an overview of key concepts discussed in the subsequent chapters of this book. The book shows how accountants and non-accounting managers construct their company’s earnings. It explores the theory of finitism by examining how people classify transactions and make professional judgements, how computer software is used in accounting and how people prepare for and facilitate the auditing process. The book discovers some theory, by the profession or in continuing professional development courses, that is, courses other than positive economics, behavioural science and related business/management areas. Tomkins and Groves argue that, as a result of direct interaction with practitioners, the approach is more likely to produce reliable theories about accounting in action and the effects of alternative accounting procedures.