Task 3 Essay (50% of total marks) Required
Write a fully referenced individual essay (maximum 1,500 words excluding references) addressing the following proposition:
“Efforts by regulators, researchers, and professional bodies, to improve accounting and audit quality have gone in vain and will continue to do so, as managerial incentives and pressures continue to encourage engagement with earnings management practices.
In preparing your answer, you might find it useful to take the following approach:
· Discuss relevant theory on the determinants of accounting and audit quality.
· Drawing on your research of relevant academic literature and examples from practice, discuss the role – if any – and the perceived effectiveness of
relevant research and regulation.
• Considering the various lenses through which one may view the topic, critically discuss whether you think managerial incentives and/or pressures can boycott accounting and audit quality, by encouraging earnings management practices.
To complete this exercise, you must carry out your own search of the literature and provide evidence of your ability to analyse, synthesize, and critique relevant theoretical concepts and research methods. You will also evaluate the practical implications of alternative views and propositions on current issues in accounting practice.