2 / 7 100% + S Question 1 Week 1 (7 Marks) Section 301 of the Corporations Act requires companies to have their financial reports audited. Academic research suggests that Big-4 auditors charge higher fees than other auditors and their audit reports are more credible than those issued by other auditors. Required: In times of economic recession would you expect: (a) the demand for audits to increase or decrease? (3 marks) (100-150 words) (b) clients to shift from large (Big-4) auditors to smaller auditors, or from smaller auditors to Big- 4 auditors? Why or why not? (4 marks) (100-150 words) Question 2 Week 3 (7 Marks)