Chaos Theory And Accounting Process

Abstract

The financial reporting process has a chaotic structure due to the complexity it contains. The root cause of this chaotic structure in the accounting process system stems from the dynamics of data flows. While recording financial events, the accounting system uses different account codes, and in doing so, processes the data flow at different points in time into the relevant account codes within a certain systematic framework. The existence of the connections required by accounting theory between these account codes brings the process of recording each financial event to a chaotic structure, where an insignificant variable in the initial conditions of the process leads to unpredictable results in the final analysis, for the practitioners of the accounting profession. In this study, an approach to the accounting process is developed from the framework of chaos theory and an attempt is made to create a theoretical basis for the complexity of the accounting process for possible future academic research.