Chapter 3

METHODOLOGY
This chapter provides information on the research design and methods, as well as the
respondents of the study, collection techniques and statistical tools utilized for the interpretation and
analysis of the data.
Research Design
This study is a quantitative research type, which uses descriptive design. Quantitative
research deals with systematic investigation of social events by means of statistics or mathematical
data and techniques. It is considered as the most appropriate method since the researchers wanted to
find out the differences of the level of business owners trust to their auditors according to their:
educational attainment and years of being an audit client. Descriptive design was chosen by the
researchers because of its good structure for collection of data.
Research Respondents
`

The respondents of the study are the business owners in Davao City who have been clients of

auditors. A total of _________ respondents were asked to participate and that would represent the
whole population. Purposive sampling technique was used to select the respondents to be part of the
sample. This sampling technique chooses individuals as sample according to the purposes of the
researcher as his controls (Calmorin & Calmorin, 2007).
Research Instrument
The researchers used a survey questionnaire for gathering data to determine the level of
business owners trust to their auditors. The questionnaire consisted of two parts. Part I obtained
information of the profile of the respondents in terms of educational attainment and years of being an
audit client. Part II dealt on the rating of level of business owners trust to their auditors on the
different issues involving auditors.

The first draft of the questionnaire was submitted to the researchers adviser for corrections
and suggestions. Panel of experts was also consulted to ensure the validity and reliability of the
questionnaire. The questionnaire deals with the differences between profile of business owners and
their level of trust to their auditors on issues involving auditors.
The respondents responses were measured and analyzed using the interpretation as follows:
Range of means

Descriptive Equivalent

Interpretation

4.50-5.00

Very high

This means that the business owners have a

very high level of trust to their auditors.

3.50-4.49

High

This means that the business owners have a

high level of trust to their auditors.

2.50-3.49

Average

This means that the business owners have a

an average level of trust to their auditors.

1.50-2.49

Low

This means that the business owners have

a low level of trust to their auditors.

1.00-1.49

Very low

This means that the business owners have a

very low level of trust to their auditors.

Data Gathering Procedure

The data were gathered through the following procedures:
1. Seeking permission to conduct the study. The researchers submitted an endorsement letter
from the University of Mindanao to the business owners and a copy of survey questionnaire together
with the letter of permission to conduct the study among SMEs in Davao City.
2. Administration and Retrieval of the Research Instrument. Upon the approval, the researcher
personally distributed and administered the questionnaire to the business owners of Davao City as

respondents. They were given enough time to answer the questionnaire. Administered instruments
were retrieved after their administration. Upon retrieval, the researchers carefully inspect the data to
avoid unanswered items. The data gathered through the questionnaire were scored and recorded with
the guidance of the Statistician.
3. Analysis and Interpretation. Results were interpreted and analyzed on the purpose of the
study.
Statistical Treatment
The statistical techniques to be used in the interpretation of data and testing of the null
hypothesis include:
Percentage Analysis. Percentage analysis was used in this study to get the number counts of
selected respondents from the total sample size based on their profile.
Mean. This was used in the study particularly in the summary of level of business owners
trust to their auditors when analyzed according to two variables which are Audit Failure and
Disclosure of Confidential Information as well as in determining the level of significant difference
when respondents were grouped according to their educational attainment, years in business and firm
size.
T-test. T-test was used to examine the significance of mean differences in level of business
owners trust for two categories. In this study, t-test was used to determine if there was a significant
difference in the level of business owners trust to their auditors when respondents are grouped
Analysis of Variance (ANOVA). In this case, ANOVA was used to determine if there was a
significant difference in the level of business owners trust to their auditors on issues involving
auditors when grouped according to their educational attainment and years being an audit client.
Chi-square. This measure is used in determining the relationship between profile and level of
business owners trust. Pearsons r chi square test is commonly used when data are normally

distributed. It is a parametric test which assumed that the data is probably and inferences are given on
the limitations.

Calmorin, Laurentina P. and Calmorin, Melchor A. 2007. Research Methods and Thesis Writing. Rex
Book Store, Inc. Manila. 2007.