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CHAPTER III

METHOD AND PROCEDURE

This chapter presents the design of the research, sample and sampling technique,

research instrument and technique, data gathering procedures and statistical treatment

that will be used in the study. It also discusses how the study will be conducted, the

sources of information, and the statistical tools that will be used in testing the variables.

Research Method/Design

The study is categorized under the quantitative type of research. Particularly, it

falls under descriptive research design by which present existing situations will be

gathered and described systematically, factually, accurately, and objectively. The data

collected will further explain the concerns in the chosen field of study.

The researchers will use a descriptive or survey research design in collecting the

data needed. This method will allow the researchers to get the common ethical concerns

of Certified Public Accountant in the field of taxation and interpret the descriptive data

and understand its results. The questionnaire will be formulated using the Code of Ethics

for Professional Accountants. In this study, the methods mentioned incorporate resolute

information among variables rather than the individuals. Variables for ethical

requirements are integrity, objectivity, professional competence and due care,

confidentiality, and professional behavior. Through the survey, the researchers will

determine the common ethical issues related with the variables discussed. Subsequently,
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an interview will be conducted to gather additional data which are ethical issues not

mentioned in the questionnaire.

Sample and Sampling Technique

The purposive sampling will be used in the selection of respondents for survey-

questionnaire. Selected CPAs who provide tax related services to SMEs in Metro Manila

where the chosen respondents. The data gathered from the Code of Ethics will be used as

basis for the formulation of the questionnaire. The sample will be based from five (5)

criteria. The criteria which will be used for choosing respondents are Integrity,

Objectivity, Professional Competence and Due Care, Confidentiality, and Professional

Behavior. The procedure continues until the researchers will be able to gather sufficient

data needed for the research. Thirty (30) respondents for survey questionnaires will be

adequate in maintain the effectiveness and quality of this research.

Research Instrument and Technique

In constructing the questionnaires, the 4-point Likert scale will be used. The scale

is divided into four (4) equal parts and the questionnaire is answerable by frequently,

occasionally, rarely, and sometimes. In numerical symbol, 1 denotes sometimes, 2 for

rarely, 3 for occasionally and 4 for frequently. The researchers only used four (4)

measures to obtain specific responses from the respondents for the analysis to be
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straightforward either between frequently or sometimes and for safe or neutral option be

avoided.

The questionnaire will be divided into two (2) parts namely: profile of the

respondents and ethical concerns in taxation. The latter will correspond to each variable

of ethical requirements categorized as: integrity; objectivity; professional competence

and due care; confidentiality; and professional behavior. Each ethical requirement will

contain five (5) statements to measure the practices on each variable. The total number of

statements in the questionnaire is twenty-five (25).

Validation of the Instrument

The questionnaire will be formulated using the data from the Code of Ethics for

Professional Accountants. The questionnaire will be presented to the researchers adviser

and to three (3) professional whom are experts in the field of study for validation before

distribution. The validators are Certified Public Accountants who already practiced

taxation. The researchers will also conduct interview for additional information on the

answer of the respondents.

Test for Reliability of the Instrument

The testing will be done using the Statistical Package for the Social Sciences

(SPSS). Cronbach-alpha test will be used to test the reliability of the questionnaire.
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Data Gathering Procedure

Formulation of
the questionnaire Discussion of Validation of the Distribution of
based from the the questionnaire questionnaire the questionnaire
Code of Ethics

Gathering of
Analyze and Presentation of
data from the
present the result data
survey

Figure 2: Data Gathering Procedure

The data will come from the Code of Ethics for Professional Accountants. Once

verification has been made, the survey questionnaires can already be distributed to thirty

(30) respondents.

This is the step-by-step procedure that the researchers will follow in order to

gather data through survey:

Formulation of Questionnaires The questionnaires for the survey will be framed from

the Code of Ethics for Professional Accountants. The information gathered will be

modified into descriptive-type of questions so that respondents will be able to provide

appropriate answers regarding the hierarchy of the ethical issues that they encounter at

work.

Pre-validation of the Questionnaire After the formulation of questionnaires, the

questions are to be presented to the researchers adviser for suggestions, enhancement and

approval of the questionnaire. Once the adviser has approved the questionnaire, it will be

presented by (3) professionals who are experts in validation.

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Distribution of Questionnaire Before the questionnaires will be distributed to the

respondents, the researchers first ask the consent of the practitioner if they are willing to

answer the survey at their available time.

Retrieval of the Accomplished Questionnaire The survey will be collected from the

respondents from different SMEs. It will be discussed by the researchers for further

assessment and will be presented to the adviser for improvements and suggestions. The

researchers will also evaluate if the result of the survey concur with the information

gathered from the initial interview. The result will be then interpreted in quantitative

values to properly measure the significance of the variables.

Statistical Treatment of Data

The study will apply descriptive statistics such as percentage, mean and standard

deviation to describe the demographic profile of the respondents; Pearsons Correlation

Coefficient to test the relationship of the ethical concerns of Certified Public Accountants

in the field of taxation when grouped according to ethical requirements, and the 4-point

Likert scale to measure the practices of thirty (30) selected Certified Public Accountants

in taxation. The researchers will use the Statistical Package for the Social Sciences

(SPSS) for the analysis of gathered data. The hypothesis is based on the 0.05 level of

significance.

The following formulas were used in the study:

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Percentage will be used to compare the frequencies of responses to the total number of

respondents.

.4-point Likert Scale will be presented with the weighted mean and followed the format

below:

Point Point Range Adjectival Description Interpretation

4 3.51-4.00 Frequently Always Encountered
3 2.51-3.00 Occasionally Often Encountered
2 1.51-2.50 Rarely Seldom Encountered
1 1.00-1.50 Sometimes Poorly Encountered

Mean will be used to obtain the average of the sum of the values of the answers of

respondents when grouped according to profile.

Standard Deviation will be used to test the disbursement of the answers of the

respondents.

Pearsons Correlation Coefficient will be used to test the significant relationship of the

ethical concerns of Certified Public Accountant in the field of taxation when grouped

according to ethical requirements.