Accounting & Auditing
Research: Tools and Strategies
11th Edition
COMPLETE SOLUTIONS MANUAL
Thomas R. Weirich
Thomas Pearson, LL.
Natalie T. Churyk
©2025 . 1
, CHAPTER 1
INTRODUCTION TO APPLIED PROFESSIONAL RESEARCH
Discussion Questions
1. Research 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 professional databases
to search the authoritative literature, reviewing and evaluating the data collected, drawing
conclusions and communicating your results.
2. Accounting, auditing, or tax research involve a systematic and logical investigation of an issue
or problem using the accountant’s professional judgment. 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.
3. Accounting, auditing, or tax research are necessary 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.
4. The objective of accounting, auditing, or tax research is a systematic investigation of an issue
or problem utilizing the researcher’s professional judgment to arrive at appropriate and timely
conclusions regarding the issues at hand.
5. 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.
6. 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.
7. 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
©2025 . 2
,find it?; If there exist more than one alternative of authoritative support, which one do I use?; If
authoritative literature does not exist, what do I do?; What professional databases do I use?
8. Theoretical (pure or basic) research involves investigating questions that, while interesting, have
little or no present, practical applications; while applied research involves investigating issues of
immediate, practical importance.
9. Some of the characteristics that a practitioner-researcher should possess include inquisitiveness,
open-mindedness, patience, thoroughness, and perseverance.
10. 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”.
11. 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.
12. The California court decision stresses that "well-informed" accountants are expected to master
"standard research techniques" (or face severe malpractice claims).
13. The research process "adds value" to an accounting firm’s services, since today's complex
business transactions and proliferation of new authoritative pronouncements mandates that the
firm efficiently and effectively conduct such research for their clients.
14. Some economic consequences to the standard-setting process of performing research include
the impact of such pronouncements to investors and creditors resource allocation decisions in
today's (competitive) capital markets, and the cost/benefit analysis of the issuance of a new
standard.
15. Since the accounting and auditing literature is organized with a keyword indexing system,
listing keywords in step one of the research process will aid the researcher in locating the
©2025 . 3
, authoritative literature in an efficient and effective manner. Failure to describe the keywords in
sufficient detail can cause one to overlook important sources.
16. The five steps involved in the research process include: identifying the (research) issue,
collecting the (appropriate) evidence, evaluating the results and identifying alternative solutions,
developing (appropriate) conclusions, and communicating the results to the interested parties.
17. Research can support or refute a biased alternative by gathering evidence that is either unbiased
or slanted toward the alternative being researched. Since the researcher should be unbiased in
evaluating the various alternatives, the process often requires a (detailed and logical) analysis of
complex and detailed accounting issues--thereby requiring "critical thinking" skills.
18. Problem distillation entails "refining" and "restating" the research issue from general to
sufficiently specific terms, in order not to waste time investigating irrelevant items.
19. The skills tested on the CPA exam include: understanding, analysis, judgment, communication,
and synthesis.
20. A research memorandum should contain such attributes as selecting objective and unbiased
words; a grammatically correct and well-spelled, clear statement of the issue researched; a
statement of the facts; a brief and precise discussion of the issue; and a straightforward conclusion
based upon supported and identified authoritative literature.
The researcher should avoid making such common errors as excessive discussion of the issues and
facts, excessive citations to authoritative sources, avoidance of presenting a conclusion, and
including irrelevant information.
21. Critical-thinking skills (e.g., understanding a variety of contents and circumstances and
applying various accounting, auditing, and business principles to help solve the problem under
review) helps the researcher effectively and efficiently gather relevant facts, synthesize and
evaluate alternatives, and develop alternative solutions.
22. The SEC stressed the importance of accountants performing effective research, claiming that
this CPA's deficiency constituted a lack of exercising "due professional care."
23. Although this question is raised in Chapter 1, it is not directly answered until a later chapter.
However, in Chapter 1 it briefly discusses that when authoritative literature does not exist on a
specific issue, the practitioner would normally develop a theoretical solution based on logic or
analogous authoritative literature. In a later chapter we will focus on this question in detail whereby
©2025 . 4
Research: Tools and Strategies
11th Edition
COMPLETE SOLUTIONS MANUAL
Thomas R. Weirich
Thomas Pearson, LL.
Natalie T. Churyk
©2025 . 1
, CHAPTER 1
INTRODUCTION TO APPLIED PROFESSIONAL RESEARCH
Discussion Questions
1. Research 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 professional databases
to search the authoritative literature, reviewing and evaluating the data collected, drawing
conclusions and communicating your results.
2. Accounting, auditing, or tax research involve a systematic and logical investigation of an issue
or problem using the accountant’s professional judgment. 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.
3. Accounting, auditing, or tax research are necessary 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.
4. The objective of accounting, auditing, or tax research is a systematic investigation of an issue
or problem utilizing the researcher’s professional judgment to arrive at appropriate and timely
conclusions regarding the issues at hand.
5. 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.
6. 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.
7. 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
©2025 . 2
,find it?; If there exist more than one alternative of authoritative support, which one do I use?; If
authoritative literature does not exist, what do I do?; What professional databases do I use?
8. Theoretical (pure or basic) research involves investigating questions that, while interesting, have
little or no present, practical applications; while applied research involves investigating issues of
immediate, practical importance.
9. Some of the characteristics that a practitioner-researcher should possess include inquisitiveness,
open-mindedness, patience, thoroughness, and perseverance.
10. 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”.
11. 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.
12. The California court decision stresses that "well-informed" accountants are expected to master
"standard research techniques" (or face severe malpractice claims).
13. The research process "adds value" to an accounting firm’s services, since today's complex
business transactions and proliferation of new authoritative pronouncements mandates that the
firm efficiently and effectively conduct such research for their clients.
14. Some economic consequences to the standard-setting process of performing research include
the impact of such pronouncements to investors and creditors resource allocation decisions in
today's (competitive) capital markets, and the cost/benefit analysis of the issuance of a new
standard.
15. Since the accounting and auditing literature is organized with a keyword indexing system,
listing keywords in step one of the research process will aid the researcher in locating the
©2025 . 3
, authoritative literature in an efficient and effective manner. Failure to describe the keywords in
sufficient detail can cause one to overlook important sources.
16. The five steps involved in the research process include: identifying the (research) issue,
collecting the (appropriate) evidence, evaluating the results and identifying alternative solutions,
developing (appropriate) conclusions, and communicating the results to the interested parties.
17. Research can support or refute a biased alternative by gathering evidence that is either unbiased
or slanted toward the alternative being researched. Since the researcher should be unbiased in
evaluating the various alternatives, the process often requires a (detailed and logical) analysis of
complex and detailed accounting issues--thereby requiring "critical thinking" skills.
18. Problem distillation entails "refining" and "restating" the research issue from general to
sufficiently specific terms, in order not to waste time investigating irrelevant items.
19. The skills tested on the CPA exam include: understanding, analysis, judgment, communication,
and synthesis.
20. A research memorandum should contain such attributes as selecting objective and unbiased
words; a grammatically correct and well-spelled, clear statement of the issue researched; a
statement of the facts; a brief and precise discussion of the issue; and a straightforward conclusion
based upon supported and identified authoritative literature.
The researcher should avoid making such common errors as excessive discussion of the issues and
facts, excessive citations to authoritative sources, avoidance of presenting a conclusion, and
including irrelevant information.
21. Critical-thinking skills (e.g., understanding a variety of contents and circumstances and
applying various accounting, auditing, and business principles to help solve the problem under
review) helps the researcher effectively and efficiently gather relevant facts, synthesize and
evaluate alternatives, and develop alternative solutions.
22. The SEC stressed the importance of accountants performing effective research, claiming that
this CPA's deficiency constituted a lack of exercising "due professional care."
23. Although this question is raised in Chapter 1, it is not directly answered until a later chapter.
However, in Chapter 1 it briefly discusses that when authoritative literature does not exist on a
specific issue, the practitioner would normally develop a theoretical solution based on logic or
analogous authoritative literature. In a later chapter we will focus on this question in detail whereby
©2025 . 4
