Question
1. Explain how the circumstances under each of the following might reflect failed leadership by auditors and the audit firm: - Under-reporting of time on
1. Explain how the circumstances under each of the following might reflect failed leadership by auditors and the audit firm: - Under-reporting of time on an engagement - Premature sign-off on audit procedures - Accepting weak client explanations for accounting
2. Bruns and Merchant found that managers did not agree on the types of earnings management activities that are acceptable. Refer to the definitions of earnings management in chapter 7. Explain how leadership traits influence how mangers might perceive the acceptability of earning management.
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