An example of how theory can help to identify problems and deficiencies with current accounting practice and improve accounting practice is:

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Corporate social responsibility theory and the conceptual framework for accounting can help identify problems and deficiencies such as lack of transparency in reporting, insufficient consideration of environmental and social factors, and inadequate stakeholder engagement. By integrating CSR considerations into the conceptual framework for accounting, a more comprehensive and responsible accounting practice can be developed.

An Example of How Theory Can Help to Identify Problems