POWER SCHOOL OF TECHNOLOGY INC.

ACCOUNTING RESEARCH METHODS

MODULE 3

FORMULATING A RESEARCH PROBLEM

The very first step in any research undertaking is formulating or defining the research
problem or topic. If a problem is too broad and unclear, the entire research undertaking runs
the risk of being flawed or weak.

Research problems may stem from various sources:

- Work Environment
Example of problem to solve: weaknesses in the internal control of a firm

- Industry
Example: compliance to the industry standard tolerable food cost by selected restaurants

- Government and laws

Example: impact of Tax Reform for Acceleration and Inclusion (TRAIN) law of specific
businesses

- Society
Example: impact of degradation of nature arising from poor waste management of companies
along with the potential contingent liabilities provisions they have to assume in their financial
statements

- Human Capital
Example: correlation between passing rate of schools in the CPA Licensure board examination
and specific school-related factors

- Professional Associations
Example: the relevance of continuing professional development seminars offered by the
Philippine Institute of Certified Public Accountants (PICPA) as perceived by its member

- Abroad or Global Issues

Example: local auditing firms may consider upgrading and diversifying their menu of services to
remain competitive in the light of foreign practitioners penetrating the local market by virtue of
the ASEAN Mutual Recognition Agreement.

How does one choose a research problem?

STEPS when choosing a good research problem:
- Identify and employ a source. Where can one find a research problem?
- Envision the ideal situation at present of in the future. Is there a gap between the ideal
situation and the current situation?
- Identify and enumerate the subproblems (or sub-issues), if any. What other issues or
problems are related or linked to the main problem to be solved?
- Evaluate a set of problems using predetermined sensible criteria. Which of the potential
problems is most likely to be pursued?
- State the problem clearly and comprehensively. How will the main topic or problem be
expressed vividly?
- Commit to pursue the apparently best research problem that has emerged. How will the
research plan be laid out and implemented?

How does one look for research problems?

Different ways to explore potential research problems:
- Observation
- Readings
- News (Television, internet, broadsheets)
- Discussions (in associations, companies, agencies, colleagues)
- Experiments (indoor or field)
- Public Fora (conferences, widespread complaints)
- Other research projects (journals, libraries, research bureaus)

Problems could be stated in several ways:

1. In question form. Problems could be stated as questions. This depends upon the goals of the
researcher and the appropriateness of the topic to be stated in this form. The research has the
choice as to what form will be used in stating the research problem. However, may of the thesis
materials and research projects do not have titles stated in question form.

2. In Postulated Statement. This is the most popular form of stating problems. Variations in
stating the problem in statement form:
a. The use of single statement (one phrase)
b. The use of single statement with several phrases
c. The use of series of complete statements
d. The use of general statement followed by subordinate statements

3. Other ways of stating a problem:

a. Statement-question combination
b. Statement followed by series of thesis.