ACC 80 – ACCOUNTING RESEARCH METHODS

Chapter 3: Basic Accountancy Research – Conceptualization Process

Specific Outcomes:

After reading this chapter the students should have:

1. Distinguished the process in conducting a basic research;

2. Examined the different sources of researchable problems in the different areas or
sectors of the accountancy profession;
3. Selected a specific research problem and stated it clearly with the objectives;
4. Determined the importance and coverage of the study or investigation of the identified
problem;
5. Applied the proper procedures in conducting a review of related literature; and
6. Identified the appropriate theories and related concepts as framework of the study.

3.1 Basic Accountancy Research Process

According to Mendoza (2012), basic research in accountancy consists of five major

processes: (1) Conceptualization, (2) Operationalization, (3) Data Collection, (4) Data Processing and
Analysis, and (5) Application (Figure 3.1)

Conceptualization is the formative process in the conduct of an accountancy research. It

involves an understanding of the possible sources of research problem(s) and formulating questions
that will be answered by the research. The researcher should be able to appraise certain practices in
the field of accountancy that create research problems, either from an academic point of view or
from the practice of the profession.

Operationalization aims to translate the related concepts into observable units of measure.
It also deals with the manner the researcher intends to put value to events and situations covered in
the research. Operationalization is an extension of the conceptualization process. The outputs in
conceptualization and operationalization constitute the research proposal which is usually required
by funding agencies when the project has a financial grant. Once the proposal is approved, data
gathering can already start.

Data collection involves field work and use of various techniques of data-gathering. These
are the means by which evidences are gathered to provide empirical support in answering the
research questions. The researcher must be able to differentiate the purposes or uses of the various
methods of gathering data and employing the most appropriate ones. Likewise, the researcher
should be able to construct a research instrument that will enable data gathering in the most
efficient and effective manner. Devising a data gathering plan will be very useful in this process.

It is also imperative that the researcher is capable of appraising the quality of data that are
relevant to the study. Before going to the field, the researcher should have defined the population
from whom research is to be conducted .and have calculated the sample size representative of the
population. As a guide, the researcher should have a reliable sampling design.

Data Processing and Analysis entails the conversion of data into meaningful information.
This requires the use of presentation tools such as tables, graphs, figures, and the like. The

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competency required is capability of using the various methods of data presentation; explaining the
differences between data, facts, and inferences; and stating research findings clearly and accurately.

Research Application deals with the capacity of the researcher to translate research outputs
into meaningful plans of actions or other modes of interventions that will provide value to the
discipline, organizations, and communities.

Conceptualization Operationalization

Data Collection

Data Processing and

Analysis

Application

Figure 3.1. Basic Accountancy Research Process

3.1.a Defining the Research Problem

The selection of a research problem is actually the first step in research. Hence, it is
essential that utmost care and attention be given to the selection of the research problem –
particularly, its identification and analysis, its selection, the way the problem is stated and
the manner it is defined.

Definition of a Problem
 A problem is something that is perceived to be difficult or a discomfort with the way
things are. Fisher, et. al. (1983)
 The difference between “what should be” from “what is.”
 A problem is a challenging situation that requires reflective thinking before one
arrives at a solution (Calderon and Gonzales (1993).

Sources of a Problem
According to Best:

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 Actual problems encountered.

 Technological changes and developments.
 Academic or business experience.
 Consultation.
According to McGuigan:
 When there is an absence of information resulting in a gain in knowledge.
 When there are contradictory results.
 When a fact exists and the researcher intends to make own study to explain it.
According to Good and Scates:
 Specialization.
 Analysis of an area of knowledge.
 Consideration of existing practices and needs.
 Repetition or extension of investigation.
 “Off-shoots” of studies under way

Characteristics of a Good Problem

1. The first consideration is that the topic should be of great interest to the researcher.
2. The problem must be useful to concerned people in a particular field.
3. It possesses novelty.
4. Invites more complex design.
5. Can be completed in the allotted time desired.
6. Does not carry ethical or moral impediments.

Elements of a Research Problem

According to Aquino, a good research problem is one which possess the following
elements:
1. Aim or purpose of the problem. This answers the question “Why?”
2. The topic to be investigated. This answers the question “What?”
3. The locale where the research is to be conducted. This answers the question
“where?”
4. The time the study is to be undertaken. This answers the question “when?”
5. The population from whom the data will be gathered. This answers the question
“who?”

3.1.b Clarifying the Research Questions

Clarifying means making something clear or easier to understand by giving more
details or a simpler explanation. It is critical, not simple.

A Critical Question
 leads to more questions
 provokes discussion
 comes from a careful reading of the text or understanding of a topic
 addresses wider issues

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A Simple Question
 can be answered with a "yes" or "no";
 can contain the answers within the question;
 can be answered by a fact, or a series of facts; and
 can easily be found by "Googling".

Re-evaluate the Question if:

 it can be answered too easily:
o by looking it up;
o by summarizing a source; and
o if the answer seems self-evident because the evidence overwhelmingly
favors one answer.
 a researcher cannot find enough good evidence and authoritative sources
to support an answer because:
o no relevant facts exist;
o not enough research exists to be considered; and
o the question is based on preference.
 there are too much information:
o the topic is too broad.

A useful way to approach the research process is to state the basic dilemma that
prompts the research and then try to develop other questions by progressively breaking
down the original question into more specific ones. This process can be thought of as the
management-research question hierarchy.

The process begins at the most general level with the management dilemma. This is
usually a symptom of an actual problem, such as rising costs, declining sales, or a large
number of defects. A management question is a restatement of the manager’s dilemma in
question form. A research question is the hypothesis that best states the objective of the
research; the question that focuses the researcher’s attention. Figure 3.2

Figure 3.2. Clarifying the Research Question

3.1.c Literature Search

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What is Review of Related Literature (RRL)?

 The review of literature involves the systematic identification, location and analysis
of documents containing information related to the research problem.
 Research literature refers to the published or unpublished reports of actual research
studies done previously while conceptual literature pertains to articles or books
written by authorities giving their opinions, experiences, theories or ideas of what is
good or bad, desirable or undesirable within the problem area.
 Related literature is composed of discussion of facts and principles to which the
present study is related. These materials are usually found in printed materials such
as books, encyclopedias, professional journals, magazines, newspapers and other
publications.

Importance of Review of Literature

 As soon as the research topic has been identified, one should look for the theory
linking it with the available body of knowledge.
 The review of related literature is an important step in the research process because
it does not only give the investigator a complete understanding of what is known
about the topic but it also provides many ideas about ways to design and carry out
the research more effectively.
 Effective research must be based upon past knowledge.

Importance of Related Literature and Studies

1. It provides the conceptual or theoretical framework of the planned research.
2. It provides the researcher with the information about past researches related to the
intended study. This process prevents duplication of past researches (or
unnecessary) duplication of past researches that leads what needs to be
investigated.
3. It gives the investigator a feeling of confidence since by means of the review of
related literature, he will have on hand all constructs (concepts) related to his study.
4. It gives the researcher information about the research methods used, the population
and sampling considered, the instruments used in gathering data, and the statistical
computation in previous research.
5. It provides findings and conclusions of past investigations which the researcher
may relate to his own findings and conclusions.

Characteristics of Related Literature and Studies

1. The surveyed materials should be as recent as possible.
2. Materials reviewed must be objective and unbiased.
3. Materials surveyed must be relevant to the study.
4. Surveyed materials must have been based genuinely original and true facts to make
them valid and reliable.
5. Reviewed materials must not be too few nor too many.

Sources of Related Literature and Studies (RLS)

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1. Books, encyclopedias, almanacs, and other similar references

2. Articles published in professional journals, magazines, periodicals, newspapers, and
other publications
3. Manuscripts, monographs, memoirs, speeches, letters and diaries
4. Unpublished theses and dissertations
5. The Constitution, and laws and statutes of the land
6. Bulletins, circulars, and orders emanating from government offices and
departments,
7. Records of schools, public or private, specially reports on their activities
8. Reports from seminars, educational or otherwise
9. Official reports of all kinds, educational, social, economic, scientific, technological,
political, etc. from the government and other entities.

3.2.d Acquiring/Recruiting Participants

Participant recruitment is a major challenge in many research studies involving
human subjects. This involves a number of activities, including identifying eligible
participants, adequately explaining the study to the potential participants, recruiting an
adequate sample based on study goals and design, obtaining informed consent and
maintaining ethical standards, and retaining participants until study completion.

How to recruit participants in Research?

Recruiting from current users
1. Build a research panel. This involves creating a database of potential
research candidates;
2. Recruit through customer support;
3. Set up live intercepts;
4. Use social media channels; and
5. Ask participants for referrals.

3.2.e Ethical Treatment of the Participants

1. Respect for participants – A researcher should always demonstrate respect in terms of
all their interactions with participants including not judging them, not discrediting them,
in ensuring that their views are faithfully recorded and given due consideration in the
assessment process. Part of this respect is implied by the terminology of ‘participant’
(rather than ‘respondent’ or ‘subject’). An important dimension of this respect relates to
ensuring the protection of persons with diminished autonomy, and those who are
marginalized or vulnerable. Special recognition and procedures may also be required in
the case of Indigenous Peoples.
2. Informed consent – Participation should be the voluntary choice of the participants and
should be based on sufficient information and an adequate understanding of the
research and the consequences of their participation. This implies that the researcher
must disclose all relevant information and any possible risks of participation, especially
any issues around what will happen to the data obtained. It is usually expected that

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informed consent be recorded in writing (as signed consent forms) and be producible by
the researcher in the event of an audit up to several years after the research was
completed.
3. Specific permission required for audio- or video-recording – If the researcher intends to
audio record (i.e. ‘tape’), video record (i.e. ‘film’) or photograph any participant, their
specific approval for this must be given in advance.
4. Voluntary participation and no coercion – As implied by the principle of informed
consent, participation must be voluntary and not subject to any coercion or threat of
harm for non-participation. Non-coercion is not taken to mean that there should not be
payments for participation; however, any such payment should be commensurate with
the amount of time and normal income expectations of the participants, and should not
be excessive such that it would constitute a bribe or inappropriate inducement.
5. Right to withdraw – Consistent with the principle of voluntary participation, participants
must know that they can withdraw at any time and have any of their data already
recorded removed from the analysis where this is possible.
6. Full disclosure of funding sources – An implication of the principle of informed consent
is that there must be full disclosure of the sources of funding for the research.
7. No harm to participants – This means that participants must not be exposed to pain or
danger in the course of the research (such as in a psychological experiment or medical
trial). Also, there must be no adverse consequences to a person as a result of
participation. At the very least, the researcher must do their utmost to protect
participants from any harm, and to ensure under the principle of informed consent that
the participant is fully appraised of all possible risks from participation. Sometimes,
participation in social research will necessarily cause a participant to reflect on personal
issues, bringing about emotional distress. Here the researcher’s obligation is to ensure
that the research interaction does not finish until there is some resolution of the
emotional distress that has arisen, and that there is recourse to follow-up assistance or
counselling.
8. Avoidance of undue intrusion – Respect for participants means that there will be
discussion only of those matters that are relevant to the issues under research and that
enquiries should be confined to those issues. It implies a respect for the personal lives of
participants and that researchers should be cognizant of what is personal and private.
9. No use of deception – The principle of respect for participants and professional integrity
implies that the use of deception or covert methods should only be used under certain
circumstances and only when approved by a duly appointed ethics committee.
10. Presumption and preservation of anonymity – There is an assumption of anonymity,
that is, people participate in research on the presumption that they will be anonymous
and that their anonymity will be protected, unless they have given permission to be
named. Thus, there is a requirement for the expressed permission from participants for
any use of the real names of people or where a person’s identity would be evident from
the context.
11. Right to check and modify a transcript – Where people are named or identifiable, those
participants have the right to check how they are quoted and to make changes to a

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transcript and any draft publication that may be prepared to ensure they agree with the
way they are recorded. Some codes suggest that respect for participants means that all
participants should be able to check their transcript for accuracy and completeness.
12. Confidentiality of personal matters – Respect for participants means that confidentiality
(i.e. non-disclosure of information) should be accorded to all private or personal matters
or views, or when any such undertaking is given. This means that there is a responsibility
on the researcher to make judgements about what should be reported and what should
not be publicly disclosed. The fact that something was revealed to the researcher does
not automatically entitle the researcher to make it public. When information is
entrusted to a researcher in confidence, such confidentiality must be protected.
13. Data protection – Because of the confidentiality of data, care must be taken to ensure
that the data are stored securely and safe from unauthorized access. It is also expected
that there be a stated timeline for safe disposal of the data. However, because of other
institutional requirements that researchers be able to produce raw data in the event of
an audit or complaint and to safeguard against fraud, typically this would be a number of
years after completion of the project.
14. Enabling participation – Researchers have an ethical responsibility to ensure that all
relevant individuals and groups are included in the research, and where they might
ordinarily be excluded by reasons of language, access or cost to participate, that there
be a genuine attempt to enable participation by providing appropriate means of access
such as translation, transportation, or payments to offset the cost of attendance.
15. Ethical governance – For the proper functioning of ethical procedures, it is necessary
that there be a system of ethical governance in place. There needs to be a committee or
other facility that can review research protocols prior to the research taking place,
oversee and/or monitor research activities, provide advice to researchers and
participants, and make judgements in relation to complaints.
16. Grievance procedure – Good ethical governance requires that participants have access
to a grievance procedure and recourse to corrective action. The grievance procedure
must be procedurally fair, and properly disclosed to participants.
17. Appropriateness of research methodology – Respect for participants as well as
professional probity means that the research procedure must have reliability and
validity. Participants give their time (whether free or paid) on the presumption that the
research is legitimate, worthwhile and valid.
18. Full reporting of methods – Research methods and analytical procedures must be fully
disclosed to: enable replication of the research by another researcher; enable peer
review of the adequacy and ethicality of the methodology; and to encourage critical self-
reflection on the limitations of the methodology and any implications for the results and
conclusions.

These principles provide ethical guidance to researchers and practitioners and to the
institutions in which they work. Rather than being implemented uncritically, the guidance is
meant to encourage an understanding and critical reflection on ethical issues. It should be
accepted that there will be circumstances that might obviate the rigid implementation of

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one or more of these principles. However, all researchers and practitioners have an
individual and collective responsibility to ensure ethical practice, with the team leader
having overall responsibility and a specific role in ensuring compliance by all team members.
Since ethical understandings will vary between individuals and across professional groups,
there needs to be discussion of ethics in all team situations, especially given the
interdisciplinary work contexts that typically apply in impact assessment.

3.2.f Sampling Design

Before the collection of data starts in any research project, the proportion of the
population to be used must have been determined already and the computation of the
sample must have been finished. So, what the researcher has to do here is to write about
the complete procedure used in determining the samples. Among the things that should be
explained include:
a. The size of the population;
b. The study population;
c. The margin of error and the proportion of the study population used;
d. The type or technique of sampling used whether pure random sampling, systematic
random sampling, stratified random sampling, cluster sampling or a combination of
two or more techniques;
e. The actual computation of the sample; and
f. The sample.

The researcher must explain very clearly how samples are selected. The sample
should be representative of the population as shown in the use of the appropriate sampling
technique. This is very important because if it appears that the sample is not representative,
the findings and conclusions will be faulty and hence, not valid and reliable.

3.2.g. Instrument Development

After reading and studying samples of questionnaire from related studies, the
researcher prepares own questionnaire. Consultation with some knowledgeable people
about how to prepare one is also helpful. The researcher sees to it that there are enough
items to collect data to cover all aspects of the problem and to answer all the specific
questions under the statement of the problem.

Validation of Research Instrument

Validation is the action of checking or proving the accuracy of something. A

validated questionnaire refers to a questionnaire that has been developed to be
administered among the intended respondents.

Validity is the degree of agreement between the claimed measurement and the real world.
There are three categories of validity test, namely: (i) content validity, (ii) criterion validity,
and (iii) construct validity.

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Content validity seeks to answer the question of whether the current test covers all relevant
items needed to answer the research question.
Criterion validity is the degree of correlation between the current test to the predetermined
standard. The predetermined standard scores are those that had been tested by prior
studies and had been held to be valid.
Construct validity is the degree to which the test actually measures what the theory claims.
It evaluates the degree to which the instrument reflects the theory of the phenomenon or
the concept to be measured.

Face Validity vs Content Validly

(i) Face Validity - uses the respondents to answer the question: Does the survey or test
measure what it intended to measure? This is the subjective view of the respondents to the
survey (not experts). Use this as a test-run before distribution of questionnaires.
(ii) Content Validity - uses expert panel to answer the question: Is the question or skills
measurement test "essential" to the intended measurement? Form a panel of subject
matter experts (SME) and then ask them whether the intended questions or survey is
relevant to the intended research issue.

3.1.h Pilot Testing

Pilot testing is a rehearsal of the research study, allowing to test the research
approach with a small number of test participants before the conduct of the main study.
Although this is an additional step, it may be the time best spent on any research project.

Pilot testing may be focused on three main areas: clarity of instructions, participant
tasks and questions, and the research timing.

Clarity of instructions: This involves making sure that the instructions are not
misleading or confusing to the participants
Testing of the tasks and questions: This involves testing the actual research
workflow
Research timing: Evaluate the timing of each task and the overall activities

Pilot testing (a session or two before the real test) helps fine-tune usability studies,
leading to more reliable results. It provides an opportunity to validate the wording of the
tasks, understand the time necessary for the session, and, if all goes well, may even supply
an additional data point for the study.

Tips for Pilot Testing

To get the most out of a pilot session, schedule it at least 1 day in advance of the
scheduled study, and longer if testing instructions for an unmoderated study where one
might need to pilot instructions several times before they are solid enough to use. This

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allows the researcher and the research team time to make any necessary changes. (Assume
there will be changes, because there always are.)

Recruit participants who match the target profile for pilot testing. This means that
any feedback about the study will be more relevant. In a pinch, recruiting someone who
doesn’t quite fit the profile is typically better than not running a pilot test at all, but the
results from those sessions then would not be applicable in the final study.

3.2 Getting Started with the Research Process

The conceptualization process starts with identifying the activities that pertain to the research
problem which may include three possible beginning points: an interest, an idea, and a theory.

The primary source of a research topic is the interest of the researcher. The attributes,
behaviors, and situations of a subject matter that is appealing to the researcher are to be examined.
For instance, a researcher would be interested in determining the effectiveness of different
approaches as applied to different subjects in the accountancy program.

The research may likewise start with the researcher’s idea about a specific situation or
phenomenon. Example is the idea of conducting online licensure examination must be important to
the professional regulatory bodies.

An existing theory may bring about questions that the researcher would like to be answered. For
example, the theory of motivation that has been applicable in the study of organizational behavior
may also be useful in managing the staff of an audit firm.

Hence, from an interest, idea, or theory, the researcher can identify a particular topic or concept
to become the focus of the study (Figure 3.3). The topic becomes the basis for determining the
research problem which might be existing already or just a potential one based on the assessment of
the researcher. The problem may have arisen from an academic undertaking such as review of past
researches or reading of books or professional journals. It may also be a previously identified subject
matter of a conference or academic forum that calls for a research presentation. Another possible
source of research problem is the research agenda provided by some educational institutions and
professional organizations. So, what is a problem?

Interest

Idea Topic Concept Research Problem

Theory

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Figure 3.3 Sources of Research Problem

Generally, a problem is defined as a question thrown forward for a solution. It may have arisen
from a felt need by some entities (individuals, groups, or organizations) because they lack
something. A problem of this type can be defined as a situation where the actual happening differs
from the desired situation.

A knowledge gap problem may arise from a gap between that which is known and that which is
to be known. For instance, a problem occurs when small practitioners of public accountancy are
mandated to install quality control measures and review them periodically in the absence of
concrete and operational guidelines to be followed. The detailed disclosure requirements in financial
reporting have increased the rate of deficient financial statements. These situations could be due to
knowledge gap, hence, they are sources of research problems.

The problem may also arise from conflicts or contradictions between theories and researches.
For instance, certain camps believe that advertising on the part of auditing firms, has no ethical
impediments. On the other hand, there are theoretical underpinnings that advertising puts the small
practitioners in a more disadvantaged position that creates ethical issues. The rule-based and
principle-based debate in accounting standards remains to be a researchable area.

A research should be able to provide answers to questions in financial reporting, management

accounting, auditing, and tax services, such as the following:

Financial Reporting

 Is accounting information a sufficient indicator of firm performance?

 Is accounting information an effective management control tool?
 Is accounting information reliable and unbiased?
 Is accounting information useful and relevant?
 Do differences in the international standards of accounting matter?
 How do users of financial reports value corporate environmental reporting?
 Why do firms disclose more information than what is required?
 What is the extent of discretion allowed for disclosures of information in the
financial statements?
 Does voluntary disclosure of information in the financial statements contribute
to the quality of financial reports?

Management Accounting
 How do manufacturing technologies change the approaches in cost accounting
and management control?
 Is the focus on direct labor becoming obsolete in the light of much smaller ratio
of labor to manufacturing costs?
 How do nonfinancial measures supplement the traditional profit and loss
measurement?

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 What are the roles of management accounting system in relation to firm’s

production and marketing?
 What improvements in management accounting should be done to meet the
demands for improved productivity?
Auditing
 Does an audit add value to financial statements?
 How does the enforcement of accounting standards affect the extent of audit?
 How do disclosure practices affect audit practices?
 Do non-audit service fees impair auditor independence?
Tax Services
 Do periodic tax payments matter to businessmen?
 How do tax factors influence the choice of organizational forms?
 What are the effects of taxes on the location of production?
 What are the taxpayers' behaviors in response to taxation?

As mentioned earlier, a problem usually starts with a topic of interest to the researcher, an
idea that the researcher would like to explore, or a theory that should be tested. In choosing the
problem to be studied, the researcher should consider the novelty of the topic, (it is something that
has not been "over studied" in the past). The anticipated results of the study should be useful to the
target readers or users, especially if it is disciplinary in character. The researcher should be cautious
about the administrative aspects of conducting the research such as the availability of data, the time
allotted for the study, and the means to fund "the various activities to be undertaken. Some
researchers who want to be challenged would opt for topics that invite more complex research
design.

Once the problem has been adequately studied, the readers develops the research
objectives and the scope of the study (figure 3.3). In a research report, these are discussed or
presented in the introduction or the first chapter of the report. The introduction provides an
overview of the contents of the research report; the problems to be addressed; and the purpose;
significance, and scope of the study. This aims to arouse the readers’ interest to continue reading
the report.

As shown in Figure 3.3, the second part of the conceptualization process deals with the
review of related literature, development of the research framework, and coming up with tentative
propositions.

Problem, Objectives Scoping the Chapter 1 – Introduction

Identification, Formulation Study Background of the Study
Analysis, and Statement of the Problem
Statement Objectives of the Study
Significance of the Study
Scope and Limitations of the
Study
Literature
Review

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Literature
Research
Framework
 Theoretical Framework
Conceptual Framework
Propositions Operational Framework
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Figure 3.4. Activities in the Conceptualization Process

3.3 Writing the Introduction of the Research Report

The introduction of a research report has five essential parts, as follows:

 Background of the Study
 Statement of the Problem
 Objectives of the Study
 Significance of the Study
 Scope and Limitations of the Study

Background of the Study

The background discusses the major concept(s) covered in the study. With the title
containing the major concept(s). The important contents of the background include the current
situations or conditions depicting the concept(s), such as the following:
o Problems or lapses involving the concept(s);
o Successes and opportunities resulting in the application of the concept(s);
o National and international developments in the meaning of the concept(s).

The background may also contain the following: (a) various perspectives in the treatment of
the concept(s); (b) historical development or evolution of the concept(s); and (c) legal sources and
provisions pertaining to the concept(s).

Statement of the Problem

The problem statement is a concise declaration of the question(s) to be answered. This is
anchored on the concept(s) described in the introduction. While a research problem can be stated
in declarative form, the problem statement is better presented in a question form. The problem
should be stated as clearly as possible. It should be consistent with the operational framework. A
more preferred approach is to present specific questions in every part of the operational
framework.

Objectives of the Study

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The objectives of the study constitute a guide for the researcher and for the reader as well
to know what the researcher has to do. These usually follow the chronological sequence of the
specific questions in the problem statement.

Objectives are written by beginning with either an action verb or an infinitive. Examples: to
describe the financial reporting requirements of the New Government Accounting System (NGAS)
that are applicable to the agencies under the health sector of the government; to identify the users
of financial reports in the health sector and determine their information needs. A sample of a
research problem statement and the corresponding objectives is shown in Illustrative Example 1.

Significance of the Study

The significance of the study must contain explanations of any or all of the following:
1. Who will benefit and how are they going to benefit from the study? Since the problem is
viewed in light of the needs of a specific user, the study must show the:
a. individuals, groups or communities who might be placed in a more advantageous
position on account of the study;
b. organizations to whom the recommendations are addressed. These are educational
institutions, professional organizations, sectoral associations, and government or non-
government organizations that will use the results of the study.
2. Possible contribution to knowledge and the practice of accountancy. The report should
highlight an innovation such as an effective method for professional service delivery,
technology improvement, work simplification, process improvement, or a nontraditional
approach to certain areas in accountancy.
3. Themes or areas developed for future researches. The study may bring into the open
certain related topics that can be the subject of future investigations by other researchers.
4. Relevance of the study to issues and events at the local, regional or national levels. The
study should cite how it will be able to address emerging issues which confront various
initiatives in the profession.

Scope and Limitations of Research

The scope and limitations establish the boundaries, exceptions, reservations, and
qualifications inherent in every study. The scope should include the following:
1. a brief statement of the general purpose of the study;
2. the locale from which the respondents were selected; and
3. the period covered in the study.

The limitations present the reasons why certain areas are not covered and the approach on
how the study is narrowed in scope. This part also shows the weaknesses of the study which are
beyond the researcher’s control.

Common Errors in Writing the Introduction

A research report should have a strong introduction. It certainly determines to a large extent
the attitude of the readers toward the whole research report. Unfortunately, researchers seem to
commit errors. Some of the common errors in writing the introduction and suggestions to overcome
them are as follows:

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o Too much detail; too lengthy. The introduction is a kind of overview. Looking at the
proportion of an introduction in a research paper, one can conclude that it should be
comparatively short because it serves a summary of what follows.
o Repetition of words, phrases or ideas. Be mindful of keywords that are crucial to the study.
The reader does not want to read words over and over! A high level of repetition shows
carelessness on the part of the writer. To reduce repetition, highlight repeated words or
phrases. It is easy to note highlighted words and see if they are overused. Find synonyms or
pronouns to replace them.
o Unclear Problem definition. Without a clearly defined research problem, the reader is left
with no clear idea of what the study is. This means that he / she cannot judge the work’s
relevance and usefulness to his / her own work, as well as determine its quality. The purpose
of the study should encapsulate the problem under investigation. Ensure that the research
problem matches the title of the study as well as its methodology and objectives.
o Poor organization. Writing an introduction that effectively introduces the research problem
and encapsulates the study is not an easy task. Writing is often a process of discovery. Often
the writer discovers gradually what he/ she wants to say and how to say it in the process.
Bear in mind that when writing the introduction, changes are inevitable. Therefore, be
prepared to go back and make big changes on what has been written. It is also important to
acknowledge changes in the order in which ideas and information are presented. The
introduction must have a logical sequence that the reader can follow easily.

3.4 Conducting the Review of Literature

A literature review is an account of what has been published on a topic by scholars and
researchers. It involves a search and analysis of documents related to the research problems. These
documents include books, journals, reports, previous studies, websites, and the like. The review will
discuss, summarize and synthesize what the different sources (authors and organizations) have
stated about the problem in focus.

A review of literature is not a summary or an abstract of articles. It is an analysis and

synthesis of the source materials, written in a specific style, which flows from broad to narrow, and
takes into account the theoretical and empirical issues. It should not be superficial; it is not just an
annotated bibliography with a line or two on each book or article. The review helps to contextualize
or frame the research.

Literature review allows the researcher to gain and at the same time, demonstrate skills in
two areas: (1) information seeking: the ability to scan the literature efficiently, using manual or
electronic methods, to identify useful articles and books; and (2) critical appraisal: the ability to
apply principles of analysis to identify unbiased and valid studies.

In conducting literature review, consider the following:

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1. Extent of review. The review should cover only literature related to the concept and
problem being studied. There is no need to report every published study in the area of the
research topic choose studies that are most relevant and not outdated.
2. Organizing the review. After deciding which studies to review, decide on how to order them.
In making selection, keep the research question in mind. One approach is to organize the
review by argument and counter argument. Researchers may write about studies that
disagree with the hypothesis, and then discuss those that agree with it. Another way to
organize the studies in the review is to group them according to a particular variable, such as
age levels of the subjects (child studies, adult studies, etc.) or research method (case studies,
experiments etc.). Look at the problem-solution, cause-effect, and the like.
3. Writing the review. Many people simply create a list of one paragraph summaries in
chronological order. This is not an effective way to organize the review. It should be
organized by themes (pertaining to the problem) and the organization depends on the
quantity of available literature. It is usually a bad sign to see every paragraph beginning with
the name of an author. Instead, organize the literature review into sections that present
themes or identify trends, including relevant theories. It is not advisable to list all the
materials published; rather synthesize and evaluate them according to the guiding concept
of the research.
4. Providing plotline to the research. A literature review should be pointing toward the
direction of the research. In other words, by the time the readers are done with the
literature review, they should have predicted some of the characteristics of the research
even ' before they are described. Furthermore, characteristics should be directly related to
the flaws, gaps, inconsistencies, or inadequacies found in the previous literature. Since a
literature review needs to have a destination, it should be able to flow smoothly toward the
framework and methodology thru a narrative or plotline. To do so, the researcher should
write the summaries of the relevant articles in a manner that contribute to this narrative,
rather than just plodding through them one by one.
5. Citing the sources. List all sources mentioned in the review following a specific formatting
and style guide. Some common errors in reviewing the literature are as follows:
 Carrying out a hurried review of the literature in order to get started on the
research project. This usually results in overlooking previous studies with ideas
that would have improved the researcher's project.
 Relying too heavily upon secondary sources. Primary sources are still superior to
secondary sources.
 Concentrating on research findings when reading research articles, thus
overlooking valuable information on methods, measures, and so forth.
 Overlooking sources other than education journals, such as newspapers and
popular magazines, which often contain articles on current trends and practices.
 Failure to define satisfactorily the topic limits of the review of literature.
Searching too broad areas often leads the researcher to be discouraged. In
searching too narrow areas, the researcher might overlook many articles that
are peripheral to the research topic but contain information that would help
design a better study.

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 Copying bibliographic data incorrectly and the inability to locate the reference
needed. Copying far too much material into note cards. This often indicates that
the researcher does not have a clear understanding of his/her project and thus
cannot separate important from unimportant information.

3.5 Developing the Research Framework

A framework is an underlying set of ideas, principles, agreement or rules that provide the
basis or the outline for something that is more fully developed at a later stage (Encarta Dictionary,
2000). It is a coherent system that facilitates consistent development, interpretation, and application
concepts, methodologies, and techniques useful to a discipline or profession. A framework provides
a structural blueprint of how a body of knowledge and guidance fits together. Research frameworks
are generally classified into three: (1) theoretical framework, (2) conceptual framework, and (3)
operational framework.

Theoretical Framework
A theoretical framework refers to the sets of interrelated concepts, definitions and
propositions that presents a systematic view of phenomena by specifying relations among variables.
It becomes the basis for the research problem and explains the phenomena upon which the
investigation hopes to fill the vacuum in the stream of knowledge.

When a researcher starts reviewing the related literature, he / she soon discovers that the
problem he/she wishes to investigate has its roots in a number of theories that have been developed
from different perspectives. The information obtained from different sources such as books and
journals are sorted under the main themes, highlighting agreements and disagreements among the
authors and identifying the unanswered questions or gaps. When this is done, the researcher will
realize that the literature deals with aspects that have a direct or indirect bearing on the research
topic. These aspects should be used as the basis in developing the theoretical framework.

Thus, the theoretical framework, representing an adaptation of a theory or theories from

reputable sources, may form the basis of the researcher’s observations or the frame of reference by
which the conceptual framework may be derived. The theory can be identified from the review of
literature, and may be in the form of explanatory theory, existing model from previous empirical
studies, or a paradigm.
o Model is a representation of a system constructed for the purpose of studying some aspects
of the system or the whole system. A model’s role is representation, whereas a theory’s role
is explanation.
o Paradigm is a fundamental model or scheme that organizes one’s view of something.
Although a paradigm does not necessarily answer important questions, it shows where to
look for the answers. It is a diagrammatic representation of a conceptual framework. In a
more vivid way, it depicts what the conceptual framework wants to convey.

The theoretical framework may also be in the form of perspectives, principles, standards, or
schools of thought. Examples of theories commonly used in accountancy are agency theory and

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stakeholder theory, both of which have finance orientation. Management theories such as the
systems theory, Contingency theory, rewards theory, and motivation theory are also used as
theoretical framework in accountancy research. A number of organizational and leadership theories
can also be the basis for accountancy research. In addition, the various systems in accounting can
also be used such as the management control system, internal control system, information
management system, performance management system, and the like. The basic and fundamental
ideas or assumptions underlying the practice of financial accounting are also sources of theoretical
foundations for research.

Conceptual Framework

The conceptual framework consists of the researcher’s own position on a problem after his
exposure to various theories that have a bearing on the problem. It is the researcher’s new model
which has its roots on previous models which the researcher had studied. It becomes the central
theme or main thrust of the s study and serves as a guide in conducting the investigation.

The conceptual framework stems from the theoretical framework and concentrates, usually,
on one section or component of said theoretical framework. While the theoretical framework
consists of the theories or issues in which the study is embedded, the conceptual framework
describes the aspects the researcher selected from the theoretical framework to become the basis
of the study. Thus, the conceptual framework grows out of the theoretical framework and relates to
the specific research problem.

The steps in developing the conceptual framework are as follows:

1. Identify the key concepts and/ or variables included in the study. Take note that the
concepts to be used should be derived from the theories presented in the theoretical
framework.
2. Know the relationship of these concepts and / or variables.
3. Make a schematic diagram, graphical presentation, illustration or matrix of relationship of
these concepts.

In other researches, the conceptual framework is adequate to be used in the operational or

measurement process. However, others include an operational framework.

Illustrative Example 1

Research Problems and Objectives

Statement of the Problem

This study was conducted to provide answers to the following questions:
1. What are the financial reporting requirements of the New Government
Accounting System that are applicable to the agencies under the health sector of
the government?

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2. What is the state or condition of the existing financial reporting system in these
government agencies under the health sector in terms of a) compliance to
external financial reporting requirements, b) internal uses of financial reports; c)
agency financial reporting practices, d) financial reporting improvements, and e)
other financial reporting mechanisms?
3. Who are the users of financial reports in the health sector and what are their
information needs?
4. What are the measures necessary to improve the financial reporting system?
5. What methodologies should be adopted to implement the measures of
improving financial reporting system?

Objectives of the Study

This study aims to:
1. Identify the financial reporting requirements of the New Government
Accounting System that are applicable to the agencies under the health sector of
the government;
2. Assess the existing financial reporting system in the government agencies under
the health sector in terms of a) compliance to external financial reporting
requirements, b) internal uses of financial reports; c) agency financial reporting
practices, d) financial reporting improvements, and e) other financial reporting
mechanisms;
3. Identify the users of financial reports in the health sector and determine their
information needs;
4. Recommend measures necessary to improve the financial reporting system; and
5. Provide the appropriate methodologies for the implementation of a financial
reporting system.

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