Title Details

Preface XIII

About the Authors XVII

Chapter 1 INTRODUCTION TO APPLIED PROFESSIONAL RESEARCH 1

What is Research? 2

Research Questions 3

Nature of Professional Research 5

Critical Thinking and Effective Communication 6

Economic Consequences of Standards Setting 7

Role of Research in the Accounting Firm 7

Research and the CPA Exam 9

Overview of the Research Process 10

Step One: Identify the Relevant Facts and Issues 11

Step Two: Collect the Evidence 12

Step Three: Analyze the Results and Identify the Alternatives 12

Step Four: Develop a Conclusion 13

Step Five: Communicate the Results 13

Summary 14

Discussion Questions 15

Appendix: Research Focus on the CPA Exam 15

Chapter 2 CRITICAL THINKING AND EFFECTIVE WRITING SKILLSFOR THE PROFESSIONAL ACCOUNTANT 19

Critical Thinking Skills 19

Levels of Thinking 21

Universal Elements of Reasoning 23

An Example of Using Critical Thinking Skills 23

Effective Writing Skills 26

Writing as a Process 27

Punctuation Primer 29

Improved Writing Skills Required 29

Active Voice 29

Short Sentences 32

Definite, Concrete, Everyday Language 32

Tabular Presentation 33

Limited Jargon and Technical Terms 33

No Multiple Negatives 33

Elements of Plain English 33

Writing Effective Texts, E-mails, and Letters 34

Writing Memos to the File 36

Summary 36

Discussion Questions 37

Exercises 37

Chapter 3 THE ENVIRONMENT OF ACCOUNTING RESEARCH 41

The Accounting Environment 41

The SEC and the Standard-Setting Environment 42

Rules-Based Versus Principles-Based Accounting Standards 44

Financial Accounting Standards Board 44

FASB Strives to Simplify Standards 45

Content of Authorities 45

FASB Due Process 47

FASB Conceptual Framework Project 48

Statements of Financial Accounting Concepts Nos. 1–8 49

American Institute of Certified Public Accountants (AICPA) 49

Governmental Accounting Standards Board (GASB) 50

Other Organizations Influencing Standard Setting 52

U.S. Generally Accepted Accounting Principles (U.S. GAAP) 54

The FASB Accounting Standards CodificationTM 56

Using Authoritative Support 59

Reading an Authoritative Pronouncement 59

Accounting Choices have Economic Consequences 60

Summary 61

Discussion Questions 61

Exercises 62

Chapter 4 FINANCIAL ACCOUNTING RESEARCH TOOLS 63

Accounting Research Online 63

Database Research Strategies 64

Step One: Define the Information Needed 64

Step Two: Determine the Sources to Search 64

Step Three: Use Appropriate Search Methods 65

Step Four: View the Results and Manage the Information 65

Step Five: Communicate the Search Results 65

FASB Accounting Standards CodificationTM Research System 65

The Research Process 67

Locating U.S. GAAP Using the Codification 70

Examples Using the Codification 71

SEC Accounting for Public Companies 72

SEC Regulations and Sources 73

The SEC’s Published Views and Interpretations 73

SEC Staff Policy 74

Accessing SEC Filings and Regulations 76

Cases to Practice Accounting Research 76

Summary 77

Discussion Questions 77

Exercises 78

Appendix: CPA Exam–Financial Accounting Simulations 80

Chapter 5 THE ENVIRONMENT OF INTERNATIONAL RESEARCH 85

International Accounting Environment 85

International Accounting Standards Board (IASB) 87

IASB Authorities 89

IASB Due Process 90

Interpretations Committee Due Process 92

IASB’s Conceptual Framework 92

Principles-Based Accounting Standards 93

IFRS Funding, Regulation, and Enforcement 93

International Financial Reporting Standards (IFRS)

Research 95

IFRS Hierarchy 95

Electronic International Financial Reporting Standards (eIFRS) 95

Summary 100

Discussion Questions 100

Exercises 100

Chapter 6 OTHER RESEARCH DATABASES AND TOOLS 103

Other Database Research Strategies 103

Step One: Define the Information Needed 103

Step Two: Determine the Sources to Search 104

Step Three: Use Search Techniques and Tools 105

Step Four: View the Results and Manage the Information 105
U.S. Accounting Research Tools 106

Commercial Accounting Databases 106

AICPA’s Reference Sources 108

U.S. Government Accounting Databases 108

GASB’s Government Accounting Research System (GARS) 108

Federal Accounting Standards Advisory Board Handbook of Authorities 109

Financial Research Databases 111

Standard & Poor’s (S&P) NetAdvantage 111

Mergent Online 112

Thomson Research 113

Other Financial Databases and Sources 114

Financial Research Challenges 115

Business Research Databases and Tools 116

Article Index Databases 116

International Business Sources 117

Statistical Sources 117

Specialized Research 117

Massive Legal Research Databases 118

LexisNexis 118

LexisNexis Academic 119

Westlaw 121

Other Legal Databases 122

Summary 123

Discussion Questions 123

Exercises 123

Appendix: Website Addresses 125

Chapter 7 TAX RESEARCH FOR COMPLIANCE AND TAX PLANNING 127

Tax Research Goals 127

Tax Research Challenges 128

Tax Research Databases 129

Checkpoint 130

Primary Tax Authorities 131

The Code 131

Administrative Authorities (Particularly Treasury Regulations) 133

Judicial Sources of Tax Authority 135

Steps in Conducting Tax Research 138

Step One: Investigate the Facts and Identify the Issues 138

Step Two: Collect the Appropriate Authorities 138

Step Three: Analyze the Research 141

Step Four: Develop the Reasoning and Conclusion 144

Step Five: Communicate the Results 144

Professional Standards for Tax Services 146

Summary 147

Discussion Questions 147

Exercises 147

Chapter 8 ASSURANCE SERVICES AND AUDITING RESEARCH 151

Assurance Services 151

Consulting Services and Standards 153

Attestation Services and Standards 154

Auditing Standard-Setting Environment 157

Auditing Standard-Setting Process 157

Auditing Standards Board (ASB) 157

Public Company Accounting Oversight Board (PCAOB) 162

International Auditing & Assurance Standards Board (IAASB) 163

AICPA Online Professional Library 165

AICPA Code of Professional Conduct 166

Auditing Standards in the Public Sector 168

Compilation and Review Services 169

Role of Judgment and Professional Skepticism in Accounting and Auditing 170

Economic Consequences 171

Summary 171

Discussion Questions 171

Exercises 172

Appendix: CPA Exam Audit Simulation 173

Chapter 9 REFINING THE RESEARCH PROCESS 175

Method of Conducting Research 175

Step One: Identify the Issues or Problems 177

Step Two: Collect the Evidence 178

Step Three: Analyze the Results and Identify Alternatives 181

Step Four: Develop a Conclusion 182

Step Five: Communicate the Results 183

Lessons Learned for Professional Practice 184

Remain Current in Knowledge and Skills 184

International Complexities in Practice 186

Skills for the CPA and Similar Exams 186

Summary 187

Discussion Questions 187

Exercises 188

Appendix A: Sample Brief Memorandum 189

Appendix B: Abbreviations and Websites for Accounting, Auditing, and Tax 191

Chapter 10 FORENSIC ACCOUNTING RESEARCH 225

Definition of Fraud 227

Types of Fraud 227

The Fraud Triangle 229

Overview of a Financial Statement Fraud Examination 231

Step One: Identify the Issue and Plan the Investigation 233

Step Two: Gather the Evidence and Complete the

Investigation Phase 233

Step Three: Evaluate the Evidence 234

Step Four: Report Findings to Management or Legal Counsel 234

Business Investigations 235

Computer Technology in Fraud Investigations 235

Data-Mining Software 236

Public Databases 240

The Internet 243

Fraud Investigation Regulations 244

Summary 244

Discussion Questions 244

Exercises 245

Index 247