Chapter 9

Refining the
Research
 Learning Objectives

Overview of the Research Process

Identifying the problems to research
Collecting the evidence
Evaluating the research results
Develop the conclusions
Communicating well reasoned results
Remaining current
International complexities
Skills needed for the CPA Exam
 Overview of Research
Process
1. Investigate the facts and identify
issues
2. Collect the appropriate authorities
3. Analyze the research
4. Develop the reasoning and conclusions
5. Communicate the results
1. Identify the Issues or
Problems
Preliminarily identify the problem
Text: Can Sony write down or amortize
goodwill?
Search is amortization allowed? Is this
related to reporting or to tax? What
facts will be needed? Have laws
changed? What has Sony experienced to
warrant the question?
 1. Identify the Issues
or Problems (contd.)

Analyze the problem

What does the client really want to know?

Refine the problem statements

Greater precision
Include critical facts and authority at issue
2. Collect the Evidence

Identify keywords for research

Use a careful and systematic research
approach
Sometimes use a diagram
citations will often lead to other
relevant literature.
Locate and examine the relevant
authorities
Review insightful non-authoritative
sources
 3. Analyze Results &
Alternatives
Exercise professional judgment.
Organize the authorities logically.
Keep any hierarchy of authorities in mind.
Cite the specific location where the authorities
are found, not a summary of the information.
Apply the authorities to any
alternatives.
Evaluate the quality and quantity of support
for each alternative.
Document why an alternative was not used.
4. Develop the Conclusion

Use well reasoned, well-supported

evidence, and professional judgment
to develop a conclusion.
Answer each question asked.
Develop a conclusion for each issue!
Conclusion is often placed after the
issue.
 5. Communicate the
Results
A letter should summarize bottom-line
results and provide advice to the client.
Supporting documentation or a memo
provides the complete analysis.
State the facts and issues or problems.
Summarize the conclusion.
Reference your authorities along with a
summary of the relevant parts of the
literature.
Some firms will attach the memo,
while others just retain it in the client file.
 Remain Current
Remain current in knowledge
Use checklists
Summarize new authorities
Read newsletters (FASB, GASB, the CPA
letter) periodicals, your firms weekly updates,
the Wall Street Journal and others.
Check database updates
Browse relevant websites
Remain current in skills, such as research
Professional accounting world
continues to evolve
Skills for the CPA Exam
Knowledge and Understanding
(50%)
Knowledge via education or experience
Understanding, such as using concepts
Application Skills (30% - 40%)
Professional Judgment
Research
Analysis, such as whether compliance exists
Synthesis, such as for evaluating alternatives
Technological competencies
 Skills for the CPA
Exam (contd.)

Communication Skills (10% -

20%)
Oral and Written
Graphical and supervisory skills