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What is accounting research?

2010-07-23T00:56:20Z

67.194.199.136: /* Tax */

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==Introduction==
Accounting research is hard to define because it has shifted over time. As a rough overview, early accounting research (pre-1960s) was mostly normative (i.e., argued for the “correct” accounting treatment, or what should be). With the advent of the Journal of Accounting Research, advances in finance such as the efficient market hypothesis, creation of large data sets and the statistical abilities to analyze them (i.e., computers), and the publication of Ball and Brown’s seminal work in 1968, accounting research moved into positive research (i.e., examining what is rather than what should be). Although this change has had its critics, it has resulted in a significant increase in research output (and many new journals).

A cynical definition of research is: any paper that cites a lot of other accounting papers must be accounting research. This “quick and dirty” definition restricts accounting research to topics and methodologies that are well established in the literature; it is “safe” but somewhat limiting. More rigorously, Oler, Oler, and Skousen (2009) attempt to characterize accounting research by looking at the topics, research methodologies, and citations made by papers published in a set of six top accounting journals (AOS, CAR, JAE, JAR, RAST, and TAR). Their work can be criticized, though, because they do not consider all accounting journals, and because their categorizations of topics (6 of them) and research methodologies (7 of them) are broad. In spite of shortcomings, their paper appears to be the first that attempts to characterize and define accounting research, which they define as follows: “accounting research is research into the effect of economic events on the process of summarizing, analyzing, verifying, and reporting standardized financial information, and on the effects of reported information on economic events.”

Professors typically will choose a subject area and a methodology in which to focus their efforts. Subject areas include the topical areas considered under the umbrella term "accounting." These include information systems, auditing and assurance, corporate governance, financial, forensic, managerial, and tax.

==General Overview of Accounting Research==

==Accounting Research Topical Areas==
The following definition of research come from a research paper by [[Coyne, Joshua|Coyne]], [[Summers, Scott|Summers]], [[Williams, Brady|Williams]], and [[Wood, David|Wood]] (2010, available [http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1337755 here]).

===Accounting Information Systems (AIS)===
Studies which address issues related to the systems and the users of systems that collect, store, and generate accounting information. Users are defined broadly to include those involved in collection, storage, or use of accounting information or even the implementation of the system. These systems may be electronic or not. Research streams include, but are not limited to design science, ontological investigations, expert systems, decision aides, support systems, processing assurance, security, controls, system usability, and system performance.

===Auditing===
Studies in which the topical content involves an audit topic. These studies vary widely and include, but are not limited to, the study of the audit environment—external and internal, auditor decision making, auditor independence, the effects of auditing on the financial reporting process, and auditor fees.

*For a summary of audit fee research see Hay, Knechel, and Wong (2006, available [http://papers.ssrn.com/sol3/papers.cfm?abstract_id=512642 here])

===Financial===
Studies that address the topical content of financial accounting, capital markets, and decision making based on financial accounting information.

*For a review of the financial reporting research see Beyer, Cohen, Lys, and Walther (2010, available [http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1483227 here])
*For a review of the capital markets research in accounting see Kothari (2001, available [http://papers.ssrn.com/sol3/papers.cfm?abstract_id=235798 here])
*For a review of empirical research on accounting choice see Fields, Lys, and Vincent (2001, available [http://papers.ssrn.com/sol3/papers.cfm?abstract_id=258519 here])

===Managerial===
Studies that examine issues regarding budgeting, compensation, decision-making within an enterprise, incentives, and the allocation of resources within an enterprise.

*For a review of empirical research in Managerial Accounting see Ittner and Larcker (2001, available [http://papers.ssrn.com/sol3/papers.cfm?abstract_id=235797 here])

===Tax===
Studies that examine issues related to taxpayer decision-making, tax allocations, tax computations, structuring of accounting transactions to meet tax goals, tax incentives, or market reactions to tax disclosures.

*For a review of tax research see Hanlon and Heitzman (2010, available [http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1476561 here]) and Shackelford and Shevlin (2001, available [http://papers.ssrn.com/sol3/papers.cfm?abstract_id=235796 here])
*For a review of research in accounting of income taxes see Graham, Raedy, and Shackelford (2010, available [http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1312005 here])
*[http://papers.ssrn.com/sol3/papers.cfm?abstract_id=258569 Empirical Tax Research in Accounting: A Discussion, Ed Maydew]
*[http://papers.ssrn.com/sol3/papers.cfm?abstract_id=358580 Taxes and Corporate Finance, John Graham]
*[http://direct.bl.uk/bld/PlaceOrder.do?UIN=073838370&ETOC=RN&from=searchengine Research in Taxation, Terry Shevlin]
*[http://scitation.aip.org/getabs/servlet/GetabsServlet?prog=normal&id=JATAXX000029000002000095000001&idtype=cvips&gifs=yes&ref=no, The future of tax research: A mostly economics perspective William Gentry]
*[http://scitation.aip.org/getabs/servlet/GetabsServlet?prog=normal&id=JATAXX000029000002000087000001&idtype=cvips&gifs=Yes&ref=no The future of tax research: From an accounting professor's perspective, Terry Shevlin]
*[http://scitation.aip.org/getabs/servlet/GetabsServlet?prog=normal&id=JATAXX000029000002000107000001&idtype=cvips&gifs=yes&ref=no A legal perspective on unanswered questions in taxation research, David Weisbach and George Plesko]
*[http://scitation.aip.org/getpdf/servlet/GetPDFServlet?filetype=pdf&id=JATAXX000029000002000085000001&idtype=cvips&prog=normal&bypassSSO=1 The Future of Tax Research: What Are the Unanswered Questions?, John Robinson]
*[http://www.sciencedirect.com/science?_ob=PublicationURL&_tockey=%23TOC%2324619%231985%23999989999%23578778%23FLP%23&_cdi=24619&_pubType=HS&_auth=y&_acct=C000007678&_version=1&_urlVersion=0&_userid=8916486&md5=e5a4674ca693f4dcfdcc2fb616f2aa3d Handbook of Public Finance] This is a series that has been going on for a couple decades where they good economists to write reviews about issues in public finance (the sub-field in economics that deals with taxes). Many of the articles can be found for free on SSRN. Go to the newer issues to look at what economists are up to now when they research taxes.
*[http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B7P63-4FFPH82-T&_user=8916486&_coverDate=01%2F01%2F2002&_rdoc=8&_fmt=high&_orig=browse&_srch=doc-info%28%23toc%2324619%232002%23999969999%23568881%23FLP%23display%23Volume%29&_cdi=24619&_sort=d&_docanchor=&_ct=16&_acct=C000007678&_version=1&_urlVersion=0&_userid=8916486&md5=dae4ee927c35f6bad378b251125d170c Taxation and corporate financial policy, Alan J. Auerbach], a chapter from the Handbook of Public Finance referenced above.

===Other Topical Areas===
Studies that do not fit into one of the other topical areas. The topical areas in these studies vary significantly and include such things as education, methodologies, law, psychology, history, the accounting profession, work environment, etc.

==Accounting Research Methodologies==
A researcher will select a methodology to determine how the research is to be conducted. There are three main methodologies for research in accounting: [[archival]], [[analytical]], and [[experimental]].

One thing to avoid when discussing methodologies is to refer to one of the methods as "empirical" to differentiate from other methods. This is most often done by archival researchers who refer to their research as empirical and not to include experimental research under the "empirical umbrella." Empirical research is research that is verifiable based on observation or experimentation; thus, archival and experimental research are both empirical in nature.

===Analytical===
Researchers who utilize analytical methods base analysis and conclusions on formally modeling theories or substantiated ideas in mathematical terms. These analytical studies use math to predict, explain, or give substance to theory.

*For a recent example of analytical research in accounting, see Gao (2010, available [http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1156407 here])

===Archival===
Researchers who utilize archival methods base analysis and conclusions on objective data collected from repositories of third parties. Also included are studies in which the researchers collected the data and in which the data has objective amounts such as net income, sales, fees, etc.

*For a recent example of archival research in accounting, see Ball and Shivakumar (2008, available [http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1105228 here])

===Experimental===
Researchers who utilize experimental methods base analysis and conclusions on data the researcher gathered by administering treatments to subjects. Usually these studies employed random assignment; however, if the researcher selected different populations in an attempt to “manipulate” a variable, we also included these as experimental in nature (e.g., participants of different experience levels were selected for participation). Experimental research can include analyzing both economic and behavioral factors.

*For a recent example of experimental research in accounting, see Magilke, Mayhew, and Pike (2009, available [http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1097714 here])

===Other Research Methodologies===
Studies that did not fit into one of the other methodological categories. The methodologies in these studies vary significantly and include such things as surveys, case studies, field studies, simulations, persuasive arguments, etc.

==Skills necessary to be a successful researcher==

==How accounting research can make a difference in the world==

* Affect practice (usually high level decision makers, through textbooks)
* Mentors researches thinking who then changes world through consulting, professional service, teaching
* Affect standard setters

For a thorough description of each methodology as it applies to each subject area, the following matrix has been created:

{| border="1"
! !! AIS !! Auditing !! Financial !! Managerial !! Tax !! Other Topics
|-
! [[Analytical]]
|[[Analytical AIS]]
|[[Analytical Auditing]]
|[[Analytical Financial]]
|[[Analytical Managerial]]
|[[Analytical Tax]]
|[[Analytical Other Topics]]
|-
! [[Archival]]
|[[Archival AIS]]
|[[Archival Auditing]]
|[[Archival Financial]]
|[[Archival Managerial]]
|[[Archival Tax]]
|[[Archival Other Topics]]
|-
! [[Experimental]]
|[[Experimental AIS]]
|[[Experimental Auditing]]
|[[Experimental Financial]]
|[[Experimental Managerial]]
|[[Experimental Tax]]
|[[Experimental Other Topics]]

|-
! [[Other]]
|[[Other AIS]]
|[[Other Auditing]]
|[[Other Financial]]
|[[Other Managerial]]
|[[Other Tax]]
|[[Other Other Topics]]

|}
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Here are the different [[Research Interests|research areas]] in accounting.

Great [http://gpae.bryant.edu/~gpae/Vol6/Reading_and_Understanding_Academic_Research.pdf entry-level article] on understanding accounting research.

The CPA Exam

2010-05-05T00:05:15Z

67.194.199.136: /* How long will it take to get the CPA? */

==Introduction==
The Certified Public Accountant Examination (CPA Exam) is administered to test one's knowledge of accounting and general business practices. Acceptable completion of the CPA Exam bestows the title of Certified Public Accountant (CPA) on the candidate, assuming all other state requirements have been met.

==Reasons to get, and not to get, the CPA designation==
On its website, the AICPA asserts that the "CPA credential is a symbol of trust and professionalism in the world of business. It's a highly challenging professional track, but the reward is that CPAs are considered the most trusted advisors in business." In the business world, the CPA designation adds potential for career growth and entitles the CPA to receiving extra trust in serving in advisory roles for clients. Usually, the easiest and most convenient time to take the CPA exam is right after finishing the accounting program at BYU and before entering a Ph.D. program or the workforce.

However, accounting academics will be able to receive different benefits from earning the CPA designation. The CPA designation may add credibility in the classroom (This is not proven, but is a great [[Research Ideas|empirical question]]). Some schools want you to have professional certifications, in particular, schools that are more teaching oriented. Also, receiving the CPA desgination is probably more important for those with research and teaching interests in audit and/or tax.

Similar to working as a practitioner, the academic may be able to secure consulting opportunities in the profession because of the CPA credential. It also gives you credibility with practitioners. Additionally, if you ever decide to leave academia, this is a helpful certification for employment. The CPA designation is also useful for expert witnessing or serving on a corporate board.

For academics, there are also several reasons not to take the CPA exam. Early in one's career, time may be better spent on conducting research or improving teaching effectiveness. Keeping up on CPE credits may be a hassle. Also, some schools (most likely research intensive schools) may view it as a negative signal of where you are devoting your time; i.e., you are not a serious researcher.

==Exam Content==
Because of planned changes to IFRS for SEC filings, current exam content as of Spring 2009 includes the following sections:

===Auditing and Attestation (AUD)===
The Auditing and Attestation portion lasts 4.5 hours. The following six topics are part of this section:
# Auditing and Attestation: Engagement Acceptance and Understanding the Assignment (12-16%)
# Auditing and Attestation: Understanding the Entity and Its Environment (including Internal Control) (16-20%)
# Auditing and Attestation: Performing Audit Procedures and Evaluating Evidence (16-20%)
# Auditing and Attestation: Evaluating Audit Findings, Communications and Reporting (16-20%)
# Accounting and Review Service Engagements (12-16%)
# Professional Responsibilities (including Ethics and Independence) (16-20%)

===Business Environment and Concepts (BEC)===
The Business Environment and Concepts portion lasts 2.5 hours. The following six topics are part of this section:
# Corporate Governance (16-20%)
# Economic Concepts and Analysis (16-20%)
# Financial Management (19-23%)
# Information Systems and Communication (15-19%)
# Strategic Planning (10-14%)
# Operations Management (12-16%)

===Financial Accounting and Reporting (FAR)===
The Financial Accounting and Reporting portion lasts 4.0 hours. The following five topics are part of this section:
# Conceptual Framework, Standards, Standard Setting and Presentation of Financial Statements (17-23%)
# Financial Statement Accounts: Recognition, Measurement, Valuation, Calculation, Presentation, and Disclosures (27-33%)
# Specific Transactions, Events and Disclosures (27-33%)
# Governmental Accounting and Reporting (8-12%)
# Not-for-Profit (Nongovernmental) Accounting and Reporting (8-12%)

===Regulation (REG)===
The Regulation portion lasts 3.0 hours. The following six topics are part of this section:
# Ethics, Professional and Legal Responsibilities (15-19%)
# Business Law (17-21%)
# Federal Tax Process, Procedures, Accounting and Planning (11-15%)
# Federal Taxation of Property Transactions (12-16%)
# Federal Taxation of Individuals (13-19%)
# Federal Taxation of Entities (18-24%)

==FAQ==
In addition to the following questions, which are geared towards future academics, the AICPA also answers some [http://www.aicpa.org/Becoming+a+CPA/CPA+Candidates+and+Students/Becoming+A+CPA.htm Frequently Asked Questions] regarding the CPA exam and the CPA credential. The official web page for the Uniform CPA Exam also answers many [http://www.cpa-exam.org/cpa/computer_faqs.html Frequently Asked Questions] about the exam itself.

===What resources are available to help me review for the CPA exam?===
* [http://www.beckercpa.com/ Becker CPA Review] is generally considered to be the best CPA review course. Most students who use Becker choose the in-class instruction option, which provides course manuals, offers in-class instruction several nights each week, and assigns homework for each class. This method is purported to have a very high success rate; however, it is also very expensive.
* [http://www.wiley.com/cpa Wiley CPA Exam Review] is not quite as structured as Becker, perhaps, but it is much cheaper and is sufficient. If you've done relatively well in your courses at BYU, this should be enough to help you pass the exam. Though, additional material is on the CPA exam that is not covered in BYU's accounting program. In particular, accounting for non-profits and governmental entities on the exam but is not taught at BYU.

===Where can I find information about the CPA exam requirements for each state?===
The [http://www.beckercpa.com/state/index.cfm Becker CPA Review] website has a comprehensive listing of the CPA requirements for each state.

Additionally, you could try the National Association of State Boards of Accountancy [http://nasba.org/nasbaweb/NASBAWeb.nsf/WPHP?OpenForm (NASBA)]. While they possess all the information you would ever need, accessing the information is difficult. Each state has a NASBA representative assigned to it, and the helpfulness of the representatives varies wildly by state.

The AICPA has also created a [http://www.aicpa.org/download/states/require_pract.pdf document] that lists all of the requirements for certification and a permit to practice in each state.

===How can I be a CPA without any work experience?===
There is a difference between passing the CPA exam, receiving certification, and meeting the necessary requirements for licensing and public practice. In most states, once you meet the minimum degree and course requirements, you can sit for the CPA exam. After this point, most states require those who pass the exam to meet certain work requirements before they can receive a certificate showing that they passed the exam. This requirement is met by crossing one of two thresholds, either (1) working a specified minimum number of hours or (2) working in professional practice for a certain number of years after finishing your degree. Each state sets its own requirements for certification.

Additionally, some states require that certified professionals receive more experience beyond the aforementioned requirements before they receive a license to practice.

Though, keep in mind that some states do not have experience requirements for certification or licensing to practice; e.g., Colorado, Florida, Maryland, and Puerto Rico. Others allow substitution of additional education for experience. The AICPA has created a [http://www.aicpa.org/download/states/require_pract.pdf document] that compares the educational and experience requirements for each state. Note: The posting date for this comparison is not listed, so always be sure to check with each state's own board of accountancy for current requirements.

===How can I study for the CPA without a firm to purchase study materials?===
Without proper study materials, taking and passing the CPA exam may be difficult. In addition to buying the materials, there are many different ways to obtain study materials. Several options are available to the diligent seeker.

* [http://www.financialprep.com/ Financialprep.com] offers a free trial version of their practice test software, which contains 100 questions per section. 100 questions is sufficient to give one a general sense of how the questions on the test are.

* If you are currently a doctoral student, you may approach one of the companies that provides CPA study material. They sometimes give free copies to future professors. Contact the representative who services your school to discuss this possibility.

* Becker has several ways in which to get free or discounted materials. If you work as the one campus representative for BYU, then you can get a Becker course for free. Dr. Black has something to do with the selection process for campus representatives. Further, you can help set up the classroom for the classroom reviews Becker does, and they will give you a $500 discount.

* You can purchase hugely discounted Becker (as well as other brands) materials from Amazon.com or eBay.com. The ethicality of this is in question. While the [http://theboard.byu.edu/index.php?area=viewall&id=45241 100 Hour Board] at BYU claimed it was fine and legal, many (especially Becker and other test prep publishers with financial incentives to do so) would tell you it is not.

* Consider borrowing materials from someone who has already taken the test. However, the same ethical issue is involved as in purchasing it from Amazon or eBay.

* Some of the preparation courses are actually reasonably priced, between $300-400. Still a lot for a starving student, but this is a far cry from the $2700 Becker wants. One that has recently worked for a recent Ph.D. Prep student who passed all four sections the first time is the [http://www.wiley.com/cpa.html Wiley CPA] software and books.

* The Accounting lab at Utah Valley University has a current, full set of the Gleim materials for use in the lab. You could go over there or somehow petition [http://www.gleim.com/accounting/cpa/ Gleim] to outfit our lab as they have the UVU lab. The BYU library currently has limited materials in its collections.

* You might consider just taking a couple of the sections without studying, and see how it goes. BYU has a very good program and you might find that you pass without much, if any, preparation. Do this at your own risk, as it is somewhat expensive to retake exams. But you might save on prep materials and extra working hours. Though, keep in mind that not all topics on the CPA exam are taught in the courses at BYU.

===How long will it take to get the CPA?===
In the summer of 2008, there were several Ph.D. prep students who decided to sit for the CPA exam. The goal was to finish all portions of the exam before Ph.D. programs began. So far, the endeavor has been successful. Before you decide to take the exam consider two important questions: (1) how long will it take to study for the CPA and (2) is it worth it? The first question is considered on this page, the second question is considered in the above section on the benefits of receiving the CPA designation for academics.

The first question is quantitative in nature, but can vary greatly by candidate. One student who took the exam in the summer of 2008 kept track of all the studying he did for it, in order that other candidates might be able to see how long it takes. About this student: He had not taken advanced financial, audit, or managerial accounting, and is not naturally inclined to do well in accounting. Given this, much more study was required for him that would be required for an average Ph.D. prep track student doing the professional stem. Some of his cohorts in the prep track who took the test studied considerably less (50-80% less time), and did equally well.

Further, note that a 75 is required to pass the exam. Any score above a 75 can be viewed as over preparation for the exam (of course, assuming one is interested in the acquisition of accounting knowledge, scoring higher is a good thing). This student exceeded 75 on all the tests--and was thus over prepared for all four sections of the exam. Further, there were some logistical problems that created issues, requiring even more study time for this person.

Those three qualifiers being stated, [http://phdprep.byu.edu/index.php?title=Image:CPA_study.xls here is a spreadsheet] that contains the hours studied and the results of the CPA exams for this student. Hopefully they will help you have a better idea of how much time is required to pass the CPA exam.

After you pass the tests, however, you still have to dedicate time to upkeep your active status as a CPA. Most states require Continuing Professional Education hours be completed on an annual or biannual basis. While coursework, teaching, publishing, and conferences count towards this, some states, such as Colorado, have an ethics requirement for CPE that is fulfilled in no other way then actually paying for and doing the CPE credits. Consider the cost of upkeep of the license when deciding whether to become a CPA.

==External Links==
For additional information, take a look at the following websites:
* [http://www.cpa-exam.org/ The Uniform CPA Exam] - This is the official site for the CPA exam. It has a lot of information about the CPA exam itself. Also, interestingly enough, it contains press bulletins listing passing rates for each of the four portions for the past several quarters (currently about 50%).
* [http://en.wikipedia.org/wiki/Uniform_Certified_Public_Accountant_Examination Wikipedia: The CPA Exam] - This is a great resource that describes the actual examination process.
* [http://en.wikipedia.org/wiki/Certified_Public_Accountant Wikipedia: Certified Public Accountant] - This resource explains a little bit about what CPA's do. Additionally, it contains links to many international professional accounting organizations.
* [http://en.wikipedia.org/wiki/American_Institute_of_Certified_Public_Accountants Wikipedia: AICPA] - This site explains some of the basics about the American Institute of Certified Public Accountants (AICPA), which is the professional organization for CPA's in the United States.
* [http://en.wikipedia.org/wiki/National_Association_of_State_Boards_of_Accountancy Wikipedia: NASBA] - This site explains some of the basics about the National Association of State Boards of Accountancy (NASBA), which is the umbrella group of state boards of accountancy.
* [http://www.nasba.org/ NASBA] - The official website for NASBA.
* [http://www.aicpa.org/ AICPA] - The official website for the AICPA.
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Talk:Visiting Professor Position at BYU

2010-05-04T23:58:55Z

67.194.199.136: Created page with 'I don't understand how the last sentence logically follows from what is before it. BYU might be hiring someone (or two people), thus, they won't hire the visiting professor?--~~...'

I don't understand how the last sentence logically follows from what is before it. BYU might be hiring someone (or two people), thus, they won't hire the visiting professor?--[[Special:Contributions/67.194.199.136|67.194.199.136]] 23:58, 4 May 2010 (UTC)