Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Could you kindly help with this questions please? QUESTION 1 (30 MARKS) a) Explain a philosophy behind the audit demand in aligned with an agency

Could you kindly help with this questions please?

image text in transcribed
QUESTION 1 (30 MARKS) a) Explain a philosophy behind the audit demand in aligned with an agency theory. (5 marks) b) Discuss briefly a differentiation between auditor's assurance service than other professional assurance service. (5 marks) c) Identify THREE (3) determinants (other than auditor independence and competency) and describe how the determinant will affect audit quality. (6 marks) d) Discuss the importance associations of audit quality and earnings quality reported in the financial statement. You can use certain examples to support your discussion. (5 marks) e) DeAngelo (1981) defined that audit quality as the auditor's ability to detect material misstatement (competency) and ability to report the misstatement objectively (independency). Deangelo (1981) also argued that large audit firms (Big8/6/5/4) more capable to provide better audit quality than smaller audit firms. However, many recent accounting scandals around the globe involved the large audit firms. i) Discuss any THREE (3) potential factors that may result in the above circumstances. (6 marks) ii) What an importance auditor's attribute is critically required to cover up the weaknesses in Deangelo's (1981) definition of audit quality. Provide appropriate justifications to your opinion

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Using Microsoft Excel And Access 2013 For Accounting

Authors: Glenn Owen

4th Edition

1305161858, 9781305161856

More Books

Students also viewed these Accounting questions

Question

When should a firm force conversion of convertibles? Why?

Answered: 1 week ago