Accounting and Auditing Research: Tools and Strategies, 8th Edition

LEARNING OBJECTIVES

After completing this chapter, you should understand:

• How to execute the five basic steps in the research process.

• The process of identifying the issues or problems to research.

• How to collect evidence from data, authorities, and other sources.

• The skill of evaluating the research results and various alternatives.

• How to develop and communicate a well reasoned, documented memo and conclusion.

• How to remain current with the expanding body of authorities and data.

• International complexities in practice.

• The skills needed for the CPA exam.

METHOD OF CONDUCTING RESEARCH

Accountants are confronted with problems related to the proper accounting treatment for given transactions or the proper financial presentation of accounting data and disclosures. The focus of the research determines what appropriate alternative principles exist and what potential administrative support exists for those alternatives. Apply professional judgment in selecting one accounting principle from the list of alternatives. Always use a systematic method for conducting research.

The following example problem demonstrates the application of the research methodology, as depicted in Figure 9-1. Think through each part of the problem and the research steps in order to comprehend the complete research process.

QUICK FACTS

Research identifies the relevant facts and issues, collects ...