1. Research into IPOs and earnings management have indicated a. The market does discover upwards earning management. b. Investors expect upwards earning management. c. Firms do not engage in upwards earnings management. d. None of the above. 2. Researchers examining share price reactions to evidence of fraudulent reporting have concluded that: a. Markets are generally surprised by the information. b. Markets are highly efficient. c. Markets interpret the discovery as good news. d. Share prices are generally unaffected. 3. Which of the following board characteristics are likely to reduce earnings management? a. The existence of an audit committee. b. A mix of monitoring and expertise skills. c. More independent directors. d. All of the above. 4. Which of the following statements is incorrect in relation to critical accounting? a. It aims to critically analyse inefficient accounting practices. b. It aims to develop a critical understanding of the role of accounting processes and practices in the functioning of society and organisations. c. A critical understanding of the role that accounting plays can be used to engage in change. d. It aims to develop a critical understanding of the role of the accounting profession in the functioning of society and organisations. 5. Which of the following statements is correct in relation to International accounting research? a. It often adopts a social welfare perspective. b. This research area declined in the second half of the twentieth century due to harmonisation. c. Agency or contracting theory underlies much of this research. d. It includes research into differences in accounting practices and also considers contextual and cultural influences on financial accounting. 6. Research that attempts to explain the motivations behind the accounting choices made by managers is: a. Accounting policy choice research. b. Capital market research. c. Critical accounting research. d. International accounting research