Chapter 9 Refining the Research Process

1. Investigate the facts and identify issues 1. Investigate the facts and identify issues 2. Collect the appropriate authorities 2. Collect the appropriate authorities 3. Analyze the research 3. Analyze the research 4. Develop the reasoning and conclusions 4. Develop the reasoning and conclusions 5. Communicate the results 5. Communicate the results Overview of Research Process

Preliminarily identify the problem Preliminarily identify the problem Text: Can Sony write down or amortize goodwill? 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? 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

1. Identify the Issues or Problems (cont’d) Analyze the problem Analyze the problem What does the client really want to know? What does the client really want to know? Refine the problem statements Refine the problem statements Greater precision Greater precision Include critical facts and authority at issue Include critical facts and authority at issue

 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 2. Collect the Evidence

Exercise professional judgment. Exercise professional judgment.  Organize the authorities logically. Keep any hierarchy of authorities in mind. Keep any hierarchy of authorities in mind. Cite the specific location where the authorities are found, not a summary of the information. Cite the specific location where the authorities are found, not a summary of the information. Apply the authorities to any alternatives. Apply the authorities to any alternatives. Evaluate the quality and quantity of support for each alternative. Evaluate the quality and quantity of support for each alternative. Document why an alternative was not used. Document why an alternative was not used. 3. Analyze Results & Alternatives

Use well reasoned, well-supported evidence, and professional judgment to develop a conclusion. Use well reasoned, well-supported evidence, and professional judgment to develop a conclusion. Answer each question asked. Answer each question asked. Develop a conclusion for each issue! Develop a conclusion for each issue! Conclusion is often placed after the issue. Conclusion is often placed after the issue. 4. Develop the Conclusion

A letter should summarize bottom-line results and provide advice to the client. A letter should summarize bottom-line results and provide advice to the client. Supporting documentation or a memo provides the complete analysis. Supporting documentation or a memo provides the complete analysis. State the facts and issues or problems. State the facts and issues or problems. Summarize the conclusion. Summarize the conclusion. Reference your authorities along with a summary of the relevant parts of the literature. 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. Some firms will attach the memo, while others just retain it in the client file. 5. Communicate the Results

Remain current in knowledge Remain current in knowledge Use checklists Use checklists Summarize new authorities Summarize new authorities Read – newsletters (FASB, GASB, the CPA letter) periodicals, your firm ’ s weekly updates, the Wall Street Journal and others. Read – newsletters (FASB, GASB, the CPA letter) periodicals, your firm ’ s weekly updates, the Wall Street Journal and others. Check database updates Check database updates Browse relevant websites Browse relevant websites Remain current in skills, such as research Remain current in skills, such as research Professional accounting world continues to evolve Professional accounting world continues to evolve Remain Current

Knowledge and Understanding (50%) Knowledge and Understanding (50%) Knowledge via education or experience Knowledge via education or experience Understanding, such as using concepts Understanding, such as using concepts Application Skills (30% - 40%) Application Skills (30% - 40%) Professional Judgment Professional Judgment Research Research Analysis, such as whether compliance exists Analysis, such as whether compliance exists Synthesis, such as for evaluating alternatives Synthesis, such as for evaluating alternatives Technological competencies Technological competencies Skills for the CPA Exam

Skills for the CPA Exam (cont’d) Communication Skills (10% - 20%) Communication Skills (10% - 20%) Oral and Written Oral and Written Graphical and supervisory skills Graphical and supervisory skills