opinion could be biased by personal aspects: over-confidence; heuristics of representatives; framing, regret avoidance; and others.

Auditing and Assurance Services

Individual Assignment

 

 

Section A

 

Question 1 (about 300 words)

 

All Australian universities have their expected Graduate Attributes (GA).  ACU expects that, on successful completion of the units, students will have developed their ability to, among other attributes:

 

GA1       demonstrate respect for the dignity of each individual and for human diversity

 

GA2       recognise their responsibility to the common good, the environment and society

 

GA3       apply ethical perspectives in informed decision making

 

Imagine you are the lecturer-in-charge.   One of the students does not respect for the dignity of each individual and for human diversity, and does not accept the responsibility to the common good, the environment and society.  The student also advocates “greed is good, maximizing profit at all costs”.

 

Discuss three reasons in point form why:

 

i)     You should fail the student;

 

ii)   You should pass the student.

 

 

Question 2 (about 300 words)

 

Imagine you are the Chief Executive Officer of one of the BIG Four accounting firms.

 

Illustrate with a specific example, respectively, to explain how you would cultivate the culture among employees of the institution such that they would respect

 

i)     The dignity of each individual in the society

 

ii)   Human diversity

 

 

Section B

 

Question 1 (about 1,000 words)

 

Auditors’ judgment and consequent opinion could be biased by personal aspects:  over-confidence; heuristics of representatives; framing, regret avoidance; and others.

 

Select three academic articles on the behavioural biases that could influence auditors’ judgment and opinion.

 

Select three behavioural biases from the articles you have read.  Illustrate with a specific example on how each of these biases could lead to suboptimal or erroneous audit judgment.

 

Note:  Your answer should have three examples, each example illustrating one of the three biases.

 

You might select the articles from but not limit to the following journals:

 

–      Auditing: a Journal of Practice and Theory

–      Advances in Accounting Behavioral Research

–      Behavioral Research in Accounting

–      International Journal of Accounting, Auditing and Performance Evaluation

–      International Journal of Auditing

–      JAAF – Journal of Accounting Auditing and Finance

–      Journal of Accounting Education

–      Journal of Accounting Research

–      Journal of Accounting, Business and Management

–      Journal of Accounting, Ethics and Public Policy

–      Journal of Applied Accounting Research

–      Journal of Applied Management Accounting Research

–      Journal of Applied Research in Accounting and Finance

–      Journal of Business Finance and Accounting

–      Journal of Forensic Accounting: Auditing, Fraud, and Taxation

–      Journal of International Accounting Research

–      Journal of International Accounting, Auditing and Taxation

–      Journal of International Financial Management and Accounting

–      Journal of Management Accounting

–      Journal of Management Accounting Research

 

 

You need to submit hard copies of these 3 academic articles.  Please highlight all the sections of each of these articles that you have deliberated to develop your answer.

 

Section C

 

Question 1

 

Auditors’ liability to third parties

 

In lectures, it has been explained that how, in the US, the scope of liability has been expanded over time from the narrow concept of privity to reasonably foreseeable third parties.  Similarly, the developments in Australia and United Kingdom have also been discussed.

 

Discuss how the same liability has been evolved in the following countries, respectively:

 

  1. People’s Republic of China
  1. Japan

 

  1. Germany

 

Note: 

 

  1. 1.      You may select one country of your choice instead of one of the three countries specified above upon concurrence from the Lecturer.

 

  1. 2.        Your answers for each country must refer to the cases (identity and year) as in the supplementary notes provided for the unit.

 

(Possible references:  Texts, professional publications, academic articles, statutory legislation, common law, codes of conduct, and relevant cases from and for the countries concerned.   Search with keywords like “auditor; third parties; liability; criminal and civil offences; damages; claims; negligence; fraud; false representation; tort; scienter).  

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