Acct 540 week 1 discussion

1) In general, what are the reasons for conducting research? What types of research have you conducted in the past? 

The reason for conducting research in any field is to find a definitive resolution to a problem or to enhance ones knowledge in a particular subject. In a more formal definition, research is defined as the investigation of an issue or problem using a systematic approach to document a final conclusion. In the accounting, auditing, and tax field, research is necessary because there are some transactions that occur less frequently than others and research needs to be performed to avoid guessing at the answer. Once it is completed, the answer can be documented for future reference.

In my tax career, I've continuously had to rely on research to resolve issues and clarify the application of certain tax laws. In my early years as a sales and use tax consultant, we worked specifically with reverse audits of manufacturing companies. These companies, depending on the state, had multiple sales and use tax exemptions available to them based on the use of materials in the plants. Research was always required because state laws varied and an exemption for a screw on one machine didn't always necessarily apply to the same type of screw on another machine. Research on these types of issues would be the difference between underpaying or overpaying tax.

2) Select one of the AICPA, FASB, GASB, IRS, IASB, or EITF and describe what its function is. Are there any more? 

Most people are familiar with the other organizations, but I never really had to look into the EIFT so that’s where I will start. The EITF is the Emerging Issues Task Force. It was formed in 1984 in response to the recommendations of the FASB's task force on timely financial reporting. Their purpose is to assist FASB in improving financial reporting through the timely identification, discussion, and resolution of financial accounting issues within the FASB Accounting Standards Codification. Task Force members are comprised of FASB's constituents which include auditors, prepares, and financial statement users. Meetings are attended by the chief accountant or deputy chief accountant of the SEC.

Each country has its own version of authoritative bodies. Others here in the U.S. include:

· Accounting Principles Board (APB)

· American Accounting Association (AAA)

· International Auditing and Assurance Standards Board (IAASB)

· International Federation of Accountants (IFAC)