Accounting and Auditing Research
Q&A
Research - answer-In general involves the investigation and analysis of an issue in
question. The researcher usually applies reasonable and reflective thinking to develop
an answer to the issue or problem at hand. Research requires a clear definition of the
problem, using a professional database to search the authoritative literature, reviewing
and evaluating the data collected, drawing conclusions and communicating your results.
Explain what accounting, auditing, and tax research are. - answer-Accounting, auditing,
or tax research involve a systematic and logical investigation of an issue or problem
using the accountant's professional judgement. Furthermore, accountants approach this
problem using critical-thinking skills to obtain and document evidence underlying a
conclusion relating to an issue or problem currently confronting the accountant or
auditor.
Why are accounting, auditing, and tax research necessary? - answer-Accounting,
auditing, or tax research are necessary in order to determine the proper recording,
classification, and disclosure of economic events; to determine compliance with
authoritative pronouncements; or to determine the preferability of alternative accounting
procedures.
What is the objective of accounting, auditing, and tax research? - answer-The objective
of accounting, auditing, or tax research is a systematic investigation of an issue or
problem utilizing the researcher's professional judgement to arrive at appropriate and
timely conclusions regarding the issues at hand.
What role does professional research play within an accounting firm or department?
Who primarily conducts the research? - answer-Research plays an important role within
an accounting firm or department. It is critical for the accountant/auditor to be able to
find and locate applicable authoritative pronouncements and to ascertain their current
status. Given the number and diversity of clients served, public accounting firms
constantly engage in research on a wide array of accounting, auditing, or tax issues.
This research process is usually conducted by the local office staff, selected local or
regional "research specialists", and/or the executive office research personnel.
What are the functions or responsibilities of the policy committee and executive
subcommittee within a multi-office firm? - answer-The functions of a multi-office CPA
firm's Policy Committee are to evaluate significant accounting and auditing issues and
establish firm-wide policies on these issues. Its Executive Subcommittee handles daily
ongoing policy (i.e., lower-level) decisions for the firm as a whole.
, Identify and explain some basic questions the researcher must address in performing
accounting, auditing, or tax research. - answer-Some basic questions that the
researcher must address in performing, accounting, auditing, or tax research include:
Do I have the knowledge to do the research?
What is authoritative literature?
Does authoritative literature address the issue?
If authoritative literature does exist, where can I find it?
If there exists more than one alternative of authoritative support, which one do I use?
If authoritative literature does not exist, what do I do?
What professional database do I use?
Differentiate between theoretical and applied research. - answer-Theoretical (pure or
basic) research involves investigating questions that, while interesting, have little or no
present, practical applications;
Applied research involves investigating issues of immediate, practical importance.
Identify the characteristics that an accounting practitioner should possess. - answer-
Some of the characteristics that a practitioner-researcher should possess include
inquisitiveness, open-mindedness, patience, thoroughness, and perseverance.
Provide an example of utilizing the research navigation guide. - answer-The "Research
Navigation Guide" serves as a tool in navigating through the authoritative literature. The
guide helps to focus or narrow one's research when utilizing various databases like the
FASB's Codification System. One would first focus on a functional area like "Financial
Accounting". Once the functional area is identified, then focus on the broad
categorization of the topic such as "Revenue". This is followed by focusing on the
subtopic that allows for further segregation of the issue "Software Revenue". The final
step would be to focus on the section or nature of the content of the issue which is often
a recognition, measurement, or disclosure issue such as "Recognition of Software
Revenue".
Distinguish between a priori and a posteriori research. Which research is used more for
planning work? - answer-While a priori (before the fact) research refers to research
before the client actually enters into the (proposed) transaction, a posteriori (after the
fact) research refers to research relating to past or completed economic transactions.
For planning purposes, the practitioner would rather be involved with a priori research to
work with the client to develop a correct solution rather than attempting to correct a
completed transaction.
Q&A
Research - answer-In general involves the investigation and analysis of an issue in
question. The researcher usually applies reasonable and reflective thinking to develop
an answer to the issue or problem at hand. Research requires a clear definition of the
problem, using a professional database to search the authoritative literature, reviewing
and evaluating the data collected, drawing conclusions and communicating your results.
Explain what accounting, auditing, and tax research are. - answer-Accounting, auditing,
or tax research involve a systematic and logical investigation of an issue or problem
using the accountant's professional judgement. Furthermore, accountants approach this
problem using critical-thinking skills to obtain and document evidence underlying a
conclusion relating to an issue or problem currently confronting the accountant or
auditor.
Why are accounting, auditing, and tax research necessary? - answer-Accounting,
auditing, or tax research are necessary in order to determine the proper recording,
classification, and disclosure of economic events; to determine compliance with
authoritative pronouncements; or to determine the preferability of alternative accounting
procedures.
What is the objective of accounting, auditing, and tax research? - answer-The objective
of accounting, auditing, or tax research is a systematic investigation of an issue or
problem utilizing the researcher's professional judgement to arrive at appropriate and
timely conclusions regarding the issues at hand.
What role does professional research play within an accounting firm or department?
Who primarily conducts the research? - answer-Research plays an important role within
an accounting firm or department. It is critical for the accountant/auditor to be able to
find and locate applicable authoritative pronouncements and to ascertain their current
status. Given the number and diversity of clients served, public accounting firms
constantly engage in research on a wide array of accounting, auditing, or tax issues.
This research process is usually conducted by the local office staff, selected local or
regional "research specialists", and/or the executive office research personnel.
What are the functions or responsibilities of the policy committee and executive
subcommittee within a multi-office firm? - answer-The functions of a multi-office CPA
firm's Policy Committee are to evaluate significant accounting and auditing issues and
establish firm-wide policies on these issues. Its Executive Subcommittee handles daily
ongoing policy (i.e., lower-level) decisions for the firm as a whole.
, Identify and explain some basic questions the researcher must address in performing
accounting, auditing, or tax research. - answer-Some basic questions that the
researcher must address in performing, accounting, auditing, or tax research include:
Do I have the knowledge to do the research?
What is authoritative literature?
Does authoritative literature address the issue?
If authoritative literature does exist, where can I find it?
If there exists more than one alternative of authoritative support, which one do I use?
If authoritative literature does not exist, what do I do?
What professional database do I use?
Differentiate between theoretical and applied research. - answer-Theoretical (pure or
basic) research involves investigating questions that, while interesting, have little or no
present, practical applications;
Applied research involves investigating issues of immediate, practical importance.
Identify the characteristics that an accounting practitioner should possess. - answer-
Some of the characteristics that a practitioner-researcher should possess include
inquisitiveness, open-mindedness, patience, thoroughness, and perseverance.
Provide an example of utilizing the research navigation guide. - answer-The "Research
Navigation Guide" serves as a tool in navigating through the authoritative literature. The
guide helps to focus or narrow one's research when utilizing various databases like the
FASB's Codification System. One would first focus on a functional area like "Financial
Accounting". Once the functional area is identified, then focus on the broad
categorization of the topic such as "Revenue". This is followed by focusing on the
subtopic that allows for further segregation of the issue "Software Revenue". The final
step would be to focus on the section or nature of the content of the issue which is often
a recognition, measurement, or disclosure issue such as "Recognition of Software
Revenue".
Distinguish between a priori and a posteriori research. Which research is used more for
planning work? - answer-While a priori (before the fact) research refers to research
before the client actually enters into the (proposed) transaction, a posteriori (after the
fact) research refers to research relating to past or completed economic transactions.
For planning purposes, the practitioner would rather be involved with a priori research to
work with the client to develop a correct solution rather than attempting to correct a
completed transaction.
