Question 4:

1- During the early 2000s, the role of accounting and the auditing profession changed and several accounting scandals were uncovered.

Required:

a. What conditions caused accounting and the auditing profession role to change during this time?

b. What major changes occurred as a result of the accounting scandals at that time?

2- The AAA Committee on Concepts and Standards for External Financial Reports was charged with updating ASOBAT in light of the many changes in accounting that had taken place since it was originally issued. With its report Statement on Accounting Theory and Theory Acceptance next jump on a discussion of why none of the approaches to theory had gained general acceptance. The statement then raised six issues as a criticisms. Discuss?