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The Third Policeman: ‘The true and fair view’, language and the habitus of accounting

2009; Elsevier BV; Volume: 20; Issue: 8 Linguagem: Inglês

10.1016/j.cpa.2009.02.003

1095-9955

Gavin Hamilton, Ciarán Ó hÓgartaigh,

Auditing, Earnings Management, Governance

This paper explores the role and context of the 'true and fair view' ('TFV') in accounting and auditing. Utilising the work of Bourdieu as a lens, the paper argues that the world of the TFV is a subjective world with which we think we are objectively familiar. Bourdieu's 'practical theory' of habitus suggests that the TFV is shaped by the practice of 'native virtuosos' who have a 'feel for the game'. The paper argues that the conceptualisation of the TFV privileges practice and authenticates the accounting habitus. Hence, whilst language maintains and reinforces social structures, it is in turn created by the routines of practice. By dominating the declaration of the TFV, the auditor effectively reinforces the status quo and the constitution of hierarchy and inequity that exists in the accounting field: the TFV, in Bourdieu's terms, 'becomes what they are'.