APPLIED ACCOUNTANCY

RESEARCH
COVERAGE

1. Nature of Applied Accountancy Research

2. Applied Accountancy Research Process
3. Problem Analysis in Applied Research
4. Framework and Design of Applied Research
5. Implementing the Applied Research
6. Communicating the Results
NATURE OF APPLIED ACCOUNTANCY
RESEARCH
• Aims to find a practical solution to a specific
problem of a particular unit of study, e.g., groups,
organizations, institutions, or sectors of society
• Likely that results of investigation will be used as
basis for some kind of action, e.g., crafting
strategies, formulating policies, & developing
program & projects
• Needs to have impact; results must be acted on ,
implemented, & useful
• Basic & applied researches: not mutually exclusive –
they can be combined
NATURE OF APPLIED ACCOUNTANCY
RESEARCH
• Action research: gaining popularity; an applied research design used
by practitioners to solve problems or supply useful info
- follows iterative processes & interactive designs

Modes of Conducting Applied Research

- Embedded in professional services of public accountancy firms,
especially in consultancy
- Consultancy engagements entail use of research in solving real-life
problems
- These firms may also conduct studies to clarify gray areas in laws,
rules, regulations, standards: these cannot be categorized as formal
research (they don’t follow usual systematic process of
conceptualization operationalization data gathering)
NATURE OF APPLIED ACCOUNTANCY
RESEARCH
• Universities, research centers, training institutes, consultancy firms,
individual consultants: conduct accountancy research for clients from
business sector, gov’t, NGOs,civil society, international institutions
• Business org. & gov’t agencies do research for their own needs
• International dev’t org. engage researchers’ services for policy
research, rapid assessments, diagnostic studies, etc.
NATURE OF APPLIED ACCOUNTANCY
RESEARCH
• Multiple uses of applied research:
1. Improving some aspects of service delivery of org. for
whom research was conducted
2. Providing info as inputs to strategic planning
3. Determining need for new services
4. Benchmarking activities & practices
5. Supplying information for policies
6. Increasing understanding of future business trends &
directions
7. Allocating scarce resources
8. Improving decision-making process
NATURE OF APPLIED ACCOUNTANCY
RESEARCH
• Applied accountancy research can be classified into 3 types:
1. Evaluative
2. Developmental
3. Programmatic
NATURE OF APPLIED ACCOUNTANCY
RESEARCH
Evaluative Research
- Seeks to review or assess certain approaches, processes, systems,
strategies programs & projects, & initiatives
- Examines alternative courses of action or strategic options
- Results in :
- meaningful info useful in planning future endeavors
- Deciding on whether to pursue, discontinue or abandon aspect being
studied
- Resolving what aspects need to be improved.
NATURE OF APPLIED ACCOUNTANCY
RESEARCH
Evaluative Research
- Can focus on financial aspects such as costs, savings, profits,
etc.
- Can look at impact/outcome of aspect under study
- E.g., research on evaluation of financial implications &
impact of computerized financial information system &
online submission of financial reports among co. branches
NATURE OF APPLIED ACCOUNTANCY
RESEARCH
Developmental Research
- Aims to come up w/ concrete proposals on how certain
initiatives will be undertaken
- Usually starts w/ assessment of current situation together
w/ scanning of entity’s external environment
- Should improve systems & processes & pre-empt potential
problems
- E.g., development research initially assessing current
performance measures & incentive mechanisms for auditors,
could result in development of performance measurement
system
NATURE OF APPLIED ACCOUNTANCY
RESEARCH
Programmatic Research
- Arises from need to pursue new approaches or ways of
doing business
- Focused on program level: either reviews past & current
programs, or develop new ones
- Like development research, it starts w/ assessment of
current situation as basis for proposing course of actions
- E.g., assessment of current competency level vs.
competency requirements for staff auditors, could result in
development of competency-based training program
NATURE OF APPLIED ACCOUNTANCY
RESEARCH
Initiating an Applied Research
• Terms of Reference (TOR):
• Document spelling out requirements & expectations of
org. or other contracting party seeking conduct of
research
• Signals initiation of research project
• Serves as basis for research design & conduct
• Provides statement of:
• Research objectives
• Roles & responsibilities of both researcher & org.
• Resources available for research
APPLIED ACCOUNTANCY RESEARCH PROCESS

-includes ff. phases:

1. Research problem identification
2. Research framework & design
3. Implementation
4. Reporting
 APPLIED ACCOUNTANCY RESEARCH PROCESS

Terms of Reference

Research
Research Problem Framework Implementation Reporting
Identification and Design

Data Collection
& Analysis

Developing &
Evaluating
Alternatives

Developing
Recommendations
PROBLEM ANALYSIS IN APPLIED RESEARCH

• Entails 3 major tasks:

1. Problem identification
2. Problem description
3. Problem appraisal
PROBLEM ANALYSIS IN APPLIED RESEARCH

Problem Identification
• Source of problem is very specific: business org., gov’t
agency, NGO, sectoral association, industry sector, etc.
• Problem is usually spelled out in the TOR
• Problem: deviation/gap between what exists & what is
desired
• 2 impt. elements must be gathered: (1) existing situation &
(2) desired situation
PROBLEM ANALYSIS IN APPLIED RESEARCH

• Existing situation: based on facts & observations

• Desired situation can either be a:
1. Norm
2. Standard
3. Expected level of outcome
• Norm: something that doesn’t change in different
situations or conditions
• Standard: something accepted in an org. or agreed upon
in one society/culture: may vary from 1 org./society to
another
• Expected level of outcome: something beyond standard &
is usually a one-time plan or belonging to a single plan
PROBLEM ANALYSIS IN APPLIED RESEARCH

Problem Description
- Should state the location, i.e., where the deviation occurred
- Should also depict the extent and magnitude, i.e., how large
the deviation is
- Both the time of occurrence (when deviation occurred) &
persons involved (who caused deviation) should be shown
PROBLEM ANALYSIS IN APPLIED RESEARCH

Problem Appraisal
- Should be based on 4 criteria:
1. Seriousness
2. Feasibility
3. Trend or pattern
4. Urgency
PROBLEM ANALYSIS IN APPLIED RESEARCH

• Seriousness answers the question “Is the gap large

enough?”
• Feasibility answers the question “Can the situation still be
improved or is it beyond improving?”
• Trend or pattern answers the question “Is it getting better
or is it getting worse?”
• Urgency deals with the questions “Can it still be
reversed?” “Can the action be delayed?”
RESEARCH FRAMEWORK

• Framework:
• Underlying set of ideas, principles, agreement or rules
that provide the basis or outline for something more fully
developed at a later stage
• Coherent system that facilitates consistent development,
interpretation, & application of concepts, methodologies
& techniques useful to a discipline/profession
• Provides a structural blueprint of how a body of
knowledge & guidance fits together
RESEARCH FRAMEWORK

• Research frameworks classified into:

1. Theoretical framework
2. Conceptual framework
3. Operational framework
• Theoretical framework:
• adaptation of theory/theories from reputable sources;
• may be in the form of explanatory theory, model, or paradigm;
• may also be in the form of perspectives, principles, standards, or
schools of thought
RESEARCH FRAMEWORK

• Conceptual Framework:
• stems from theoretical framework & concentrates usu. on
1 section/component of said theoretical framework
• Describes aspects researcher selected from theoretical
framework to become basis of the study
• Grows out of the theoretical framework & relates to
specific research problem
RESEARCH FRAMEWORK

• Operational Framework:
• Shows what will be performed in the research
• A product of the researcher’s own thinking
• Usually shown together with a diagram
• Elements commonly presented in the framework may either be:
1. Variables of the study (e.g., independent & dependent variables)
2. Areas covered in the study
3. Phases or major stages to be undertaken
- See sample operational frameworks
- WE WILL USE THE OPERATIONAL FRAMEWORK IN THIS COURSE
RESEARCH DESIGN

- Scheme prepared to identify conditions necessary for

measurement, collection, and analysis of data
- Can be compared to blueprint/sketch of house
- Different from research method, w/c refers to data-gathering
techniques
- Research design helps in determining research method(s) to
be used
- Any research design can use any type of data collection
method
RESEARCH DESIGN

Conditions Considered in Preparing Research Design

- include:
1. Purpose of research
2. Unit of analysis
3. Point of focus
4. Time dimension
 RESEARCH DESIGN

Purpose of Research
• Answers the question “why” research is to be
conducted
• As discussed in “Research: Basic Concepts”,
research can have any or combination of ff.
purposes:
• Description
• Explanation
• Exploration
 RESEARCH DESIGN
Unit of Analysis
- Answers the question “who”
- Specifies source of data or units of observation
- Can be one or combination of ff.:
1. Individuals
2. Groups
3. Organizations
4. Social artifacts
Social artifacts: products of social beings or their behavior; e.g.,
social objects such as factory bldgs., records of accts.,
paintings, etc., or social interactions such as conferences,
product launchings, weddings, etc.
 RESEARCH DESIGN

Point of Focus
- Answers the question “what”
- Can be:
• Characteristics (sex, gender, habits, etc.)
• Orientations (attitudes, beliefs, traits, philosophies, etc.)
• Actions (e.g., voting, buying, holding strikes, etc.)
 RESEARCH DESIGN

Time Dimension
- Answers the question “when” to do the research
- Examples:
- Cross-sectional study: conducted at a given time
- Longitudinal study: conducted over an extended period of
time
 RESEARCH DESIGN

Classifications of Research Design

- Commonly classified into:
1. Experimental design
2. Non-experimental design
- Varying ways of classifying non-experimental design:
1. Survey vs. case studies
2. Relational vs. comparative vs. longitudinal design
3. Analytical vs. archival
 RESEARCH DESIGN

• Experimental design
• Researcher looks for a relationship
• Researcher changes 1 variable & measures resulting behavior thru
measurement of another variable
• Survey
• Researcher interested in accurate assessment of characteristics of
whole population
• Study done on samples from population
• Best design in collecting original data for describing population too
large to directly observe
• May be used for descriptive, explanatory & exploratory purposes
 RESEARCH DESIGN

• Case Study
• An in-depth inquiry of a particular situation
• Used to narrow down a very broad field of research into 1 easily
researchable topic
• Best to synergize a case study w/ a survey
• Characterized by its flexiblity: might introduce new & unexpected
results, lead to new research directions
• Advantage: can focus on specific, interesting stories
 RESEARCH DESIGN

• Relational Design
• Entails measurement of range of variables to find out their
relationships
• a.k.a. correlational design
• Comparative Design
• Assesses characteristics of 2 subjects of study
• Determines their similarity & dissimilarity
• Longitudinal Design
• Involves repeated observations of same variables over long periods of
time
 RESEARCH DESIGN

• Analytical Research
• Uses mathematical tools to predict, explain, or give substance to a
theory
• Archival Research
• Uses objective data collected from repositories such as census,
surveys, statistical records, archives & other written records
• Study of existing data
 RESEARCH DESIGN

Pitfalls to Avoid in Determining Research Design

1. Reductionism
2. Ecological fallacy
3. Individualistic fallacy
Reductionism: overly strict limitation on kinds of concepts &
variables to explain broad range of human behavior
- Belief that certain particular units of analysis/variables are more
relevant than others
 RESEARCH DESIGN

• Ecological fallacy: erroneously drawing conclusions about

individuals based solely on observation of groups
• Individual fallacy: entails conclusions derived from general
patterns of attitudes & actions of people whom researcher
has previous knowledge/familiarity
 RESEARCH DESIGN

3 Important “Must-Have” Characteristics of Research Design

1. Credibility
2. Usefulness
3. Feasibility
Credibility: ability of research to present definitive conclusions &
recommendations that are sufficiently supported by sound data
Usefulness: ability of research to provide appropriate, definite answer
to research questions
Feasibility: design can be executed given research conditions related to
time, resources & context
 IMPLEMENTING THE APPLIED RESEARCH

• Refers to the conduct of data gathering (data collection) & data

analysis
Data Collection
- Entails field work & use of various data-gathering methods
- Types of data: (1) primary (2) secondary
- Primary data: collected 1st hand by a researcher thru own data-
gathering techniques
- Secondary data: data gathered by someone else or collected for
some purposes other than current study
 IMPLEMENTING THE APPLIED RESEARCH

• Comparison of Primary & Secondary Data

Category Primary Data Secondary Data

Sources Researcher’s own study conducted Worldwide web, books, journals, official
through various techniques statistics, reports, articles, databases, etc.

Accuracy Tends to be more accurate Less accurate

Data-gathering method Follows a systematic approach Researcher has no means to systematize

approach (data already available)

Cost Higher cost Typically available for free or for a

subscription fee
 IMPLEMENTING THE APPLIED RESEARCH

Data Gathering Methods

- commonly-used methods:
1. Survey
2. Interview
3. Observation
4. Focus group discussion
5. Triangulation
Survey: a type of research design that’s also a data-gathering method;
conducted by means of questionnaire
 IMPLEMENTING THE APPLIED RESEARCH

Interview: face-to-face, interpersonal attempt to obtain info

Observation: enables researcher to describe existing situations using
the five senses
Focus Group Discussion: used to obtain different reactions of
individuals to 1 topic; relatively limited sample size
Triangulation: more than 2 data-gathering methods are used, to
double or triple check results; a.k.a cross examination.
 IMPLEMENTING THE APPLIED RESEARCH

Data Analysis & Interpretation

• Data analysis: working to uncover patterns & trends in data sets
• Data interpretation: explaining patterns & trends
• Statistical tools may be used in analysis
• Qualitative research entails such analytical methods as event
analysis, domain analysis, content analysis, etc.
• No hard & fast rules for analyzing & interpreting data
 IMPLEMENTING THE APPLIED RESEARCH

Developing & Evaluating Alternatives

- Researcher develops alternative courses of action based on gathered
data
- Alternatives must pertain to key issues of the research
- Certain criteria must be used in analyzing each alternative
- In making analysis, 1 or combination of ff. may be used:
1. Strengths & weaknesses
2. Risks & rewards
3. Costs and benefits
 IMPLEMENTING THE APPLIED RESEARCH

Developing Recommendations
• Best course of action is recommended: detailed explanation of why it
was selected is provided
• Final recommendation must flow logically from rest of research data
& must specify assumptions used
• Good research recommendation:
• Practical, implementable
• Written persuasively, clearly, logically & coherently
• Uses sound data & clearly-stated options
• Feasible
COMMUNICATING THE RESULTS

• Research report: written evidence of research effort

• Means by w/c research results are communicated
• Critical step in applied research project: includes answers to research
questions & w/ recommendation
• Common outline:
1. Rationale of the study
2. Objectives of the study
3. Research framework and design
4. Data gathering methods
5. Findings of the study
6. Recommendations (after presenting alternative courses of action)