|
|
Elements of Professional Research | Facts | Issues | Authorities/Discussion | Conclusion/Suggestions |
Accounting and business professionals conduct research to provide solutions for business and accounting problems. It is the most challenging and stimulating activity in a professional's career. It is also be a "value-added" service that is financially rewarding. There is an art and a science to the conduct of effective research. The art is a function of creativity that evolves with practice and experience. It is, however, based on the science, which requires familiarity with certain mechanical skills. The mechanics are guided by a simple structure that requires that the professional identify and discuss 1) the facts, 2) the issues, 3) the "authorities" to be relied upon, and 4) his/her conclusion/suggestion/recommendation with respect to the research issues: The facts represent the irrefutable characteristics of the decision environment that may impact the conclusion/solution. Thus, they provide the critical foundation for the entire analysis. With a closed fact pattern, the "transaction/event" is complete and an unalterable reality in its entirety. The focus is on finding the most favorable outcome, given the arrangement of the events. With an open fact pattern, the transaction/event is being planned, and at least some of the critical "facts" will evolve with the research. The focus is on structuring the events so as to receive the most favorable outcome. The issues identify the professional's concerns about how the problem's characteristics will be affected by the authoritative sources. Thus, they reflect those characteristics that are subject to different interpretations and manipulation within the context of the research project. Issues can be classified as those related to the facts of the problem and those related to the interpretation of the authoritative source. Authorities (Business/Accounting/Tax Authorities) and Discussion The authoritative sources guide the professional's analysis, since all conclusions/suggestions must be consistent with the prescriptions and proscriptions of the authorities. Accounting professionals may have to consider a variety of different sources of authority, including the primary sources such as the law (e.g., Uniform Commercial Code, Internal Revenue Code, the Securities Acts, AICPA Code of Professional Conduct), and professional pronouncements (e.g. Statements of Auditing Standards, Code of Professional Ethics, and Financial Accounting Standards), and the secondary sources such as articles in professional journals, textbooks, and research services. The existence of primary and secondary sources of authority indicates the need to evaluate the authoritative weight of each source. Conclusions and suggestions should always relay most heavily on the primary sources. Conclusions/Suggestions (Your Conclusion/Suggestion The conclusion provides the interested parties (the audience) with the accounting professional's synthesis of the facts, issues, and authorities. (Thus, this section should not discuss anything that has not been introduced in at least one of the three previous sections.) If the fact pattern is open, the suggestions include how to structure and report the planned business activity. If the fact pattern is closed, professional guidance addresses only how to most advantageously report a completed transaction. The suggestions must consider the anticipated application of the relevant authority. Ultimately, the suggestions must also reflect considerations not related to authoritative sources. For example, all suggestions must be feasible and consistent with the business's or individual's mission and objectives. In addition, an accounting professional never makes suggestions that are unethical or do not make economic sense. | Top | |
|
