Accounting and Auditing Research and Databases: Practitioner's Desk Reference

The Nature of Professional Research

This text focuses on applied research, known as professional accounting research. Today's practitioner must conduct research effectively and efficiently to arrive at appropriate and timely conclusions regarding the issues at hand. Effectiveness is critical in order to determine the proper recording, classification, and disclosure of economic events; to determine compliance with authoritative pronouncements; or to determine the preferability of alternative procedures. Efficiency is needed to meet deadlines and manage research costs.

Additional examples of issues frequently encountered by the practitioner include such questions as:

• What are the accounting, auditing, or tax implications of a new transaction?
• Does the accounting treatment of the transaction conform with generally accepted accounting principles? Does the tax treatment conform with the law?
• What are the disclosure requirements for the financial statements or tax returns?
• What is the auditor's responsibility when confronted with supplemental information presented in annual reports but not as part of the basic financial statements?
• What responsibilities and potential penalties exist for tax accountants?

Responding to these often complex questions has generally become more difficult and time-consuming as the financial accounting and reporting requirements, auditing standards, and tax authorities increase in number and complexity. The research process often is complicated further when ...