Accounting Research

Methods

Fershie D. Yap, Ph.D.

College of Accountancy and Business Administration
CHAPTER 1: RESEARCH INTRODUCTION

RESEARCH:

a way of examining your practice…

 Research is undertaken within most professions.

 More than a set of skills, it is a way of thinking: examining critically the various aspects of
your professional work.

 It is a habit of questioning what you do, and a systematic examination of the observed
information to find answers with a view to instituting appropriate changes for a more effective
professional service.
Definition of Research

 being undertaken within a framework of a set of philosophies (approaches);

 uses procedures, methods and techniques that have been tested for their validity
and reliability;
 designed to be unbiased and objective
 a structured enquiry that utilizes acceptable scientific methodology to solve
problems and create new knowledge that is generally applicable
Purpose of Research

To discover answers to questions through the application of scientific procedure.

 To gain familiarity with a phenomenon or to achieve new insights into it.
 To portray accurately the characteristics of a particular individual, situation or a
group.
 To determine the frequency with which something occurs or with which it is
associated with something else.
 To test a hypothesis of a causal relationship between variables.
Objectives of Research

Research must be identified by taking the system requirements into account. In the
process of identifying the objectives of the research, the researcher must finalize the
following:
 To formulate - develop a study to understand the topic from all angles.
 To be descriptive - to accurately picturize all the characteristics of a particular
process, individual, group, situation or institution
 To diagnose - to analyst the frequency with which something occurs
 To test hypothesis of a causal relationship between variables - hypothesis based
research studies.
Objectives of Research
In social set-up, research is carried out with the help of:
 Research questions – Problems which are resolve till date or not addressed by
anyone else like, purpose of the research, place of the research, present state of
the research and possible ways and means to finding solution to the research
problem under study.
 Hypothesis – It is a presumption or assumption about population/situation under
study drawn by researcher himself
 Boundary of the study – It is a limit set by research himself to restrict his work or to
concentrate on specific area in given/available set-up and resources.

 Quantitative objectives - aim to optimize certain measure of performances of the

system of study
 Qualitative objectives - aim to significance of hypotheses of a study of importance
Characteristics of Research
 Controlled. in real life there are many factors that affect an outcome. The concept
of control implies that, in exploring causality in relation to two variables (factors),
you set up your study in a way that minimizes the effects of other factors affecting
the relationship.
 Rigorous. you must be scrupulous in ensuring that the procedures followed to find
answers to questions are relevant, appropriate and justified. The degree of rigor
varies markedly between the physical and social sciences and within the social
sciences.
 Systematic. this implies that the procedure adopted to undertake an investigation
follow a certain logical sequence.
 Valid and verifiable. this concept implies that whatever you conclude on the basis
of your findings is correct and can be verified by you and others.
 Empirical. this means that any conclusion drawn are based upon hard evidence
gathered from information collected from real life experiences or observations
 Critical. critical scrutiny of the procedures used and the methods employed is
crucial to a research enquiry.
Criteria of Good Research
 The purpose of the research should be clearly defined and common concepts be
used.
 The research procedure used should be described in sufficient detail to permit
another researcher to repeat the researcher for further advancement, keeping the
continuity of what has already been attained.
 The procedural design of the research should be carefully planned to yield results
that are as objective as possible.
 The researcher should report with complete frankness, flaws in procedural design
and estimate their effects upon the findings.
 The analysis of data should be sufficiently adequate to reveal its significance and
the methods of analysis used should be appropriate. The validity and reliability of
the data should be checked carefully.
 Conclusions should be confined to those justified by the data of the research and
limited to those for which the data provide an adequate basis.
 Greater confidence in research is warranted if the researcher is experienced, has a
good reputation in research and is a person of integrity.
General Overview of Accounting Research
 examines how accounting is used by individuals, organizations and government as
well as the consequences that these practices have.
 both measures and makes visible certain economic events, accounting research has
studied the roles of accounting in organizations and society and the consequences
that these practices have for individuals, organizations, governments and capital
markets.
 encompasses a broad range of topics including financial accounting research,
management accounting research, auditing research, capital market research,
accountability research, social responsibility research and taxation research.
 can decide and implement new accounting or auditing standards
 presents unusual economic transactions in the financial statements
 learn how new tax laws impact clients and employers
 discerns how the accounting profession affects the capital markets through
academic accounting research
Features and Importance of Research in Accounting
If you can’t count it, you can’t manage it

 Accounting is very deeply rooted profession in almost every facet of management,

company matters and day to day activities of any person or group.
 Accounting research is research on the effects of economic events on the process of
accounting, and the effects of reported information on economic events. It encompasses
a broad range of research areas including financial accounting, management accounting,
auditing and taxation.
 Academic accounting research "addresses all aspects of the accounting profession" using
the scientific method, while research by practicing accountants focuses on solving
problems for a client or group of clients.
 Academic accounting research can make significant contribution to accounting practice
Accounting Research Topical Areas
 Accounting Information Systems (AIS)
- Studies which address issues related to the systems and the users of systems that
collect, store, and generate accounting information.
- Users are defined broadly to include those involved in collection, storage, or use of
accounting information or even the implementation of the system.
- Research streams include, but are not limited to design science, ontological
investigations, expert systems, decision aides, support systems, processing
assurance, security, controls, system usability, and system performance.
 Auditing
- Studies in which the topical content involves an audit topic.
- vary widely and include, but are not limited to, the study of the audit
environment—external and internal, auditor decision making, auditor
independence, the effects of auditing on the financial reporting process, and
auditor fees.
Accounting Research Topical Areas
 Financial
- address the topical content of financial accounting, capital markets, and decision
making based on financial accounting information.
 Managerial
- examine issues regarding budgeting, compensation, decision-making within an
enterprise, incentives, and the allocation of resources within an enterprise.
 Tax
- examine issues related to taxpayer decision-making, tax allocations, tax
computations, structuring of accounting transactions to meet tax goals, tax
incentives, or market reactions to tax disclosures.
 Other Topical Areas
- education, methodologies, law, psychology, history, the accounting profession, work
environment, etc.