Writing Accounting Research Memos: An Instructional Case to Introduce the Basics

Abstract

This case introduces students to the basics of accounting research memo construction. Accounting research memos can overwhelm students because they involve researching the Accounting Standards Codification (ASC), analyzing the issue, and writing in a specific format using a professional tone. The case involves an audit client with a contingent liability from a lawsuit. The audit team recently received the legal representation letter and needs to document the correct accounting for the lawsuit. The applicable ASC and required journal entry are provided, allowing students to focus on memo construction. The case requires students to write an accounting research memo using the provided information. Students learn the structure and creation of an accounting research memo, paraphrase and analyze the ASC, and demonstrate professional writing skills. This case is appropriate for a course that introduces students to writing accounting research memos with assessment done by the instructor or the students themselves.