Assignment -
The Assignment topic is as follows: Guan, Su, Wu and Yang's (2016, p. 522) concludes that "despite the potential positive effect of social ties on more efficient information sharing, social ties among economic agents weaken monitoring mechanisms in governance" thus affects audit quality adversely. Nevertheless, can this finding based on the Chinese economy apply to all economies?"
Required:
i. Explain the key auditing problem/issue identified in Guan et. al. (2016);
ii. Determine the facts and circumstances that lead to this problem/issue;
iii. Based on your own additional research, evaluate the reasons for and against the global applicability of the Guan et. al.'s (2016) finding;
iv. Conclude your "for" or "against" position with the strongest argument;
v. Lastly, outline the limitations of your argument. (3 Marks) Communication Quality
Reference: Guan, Y., L. Su, D. Wu, and Z. Yang. 2016. Do school ties between auditors and client executives influence audit outcomes? Journal of Accounting and Economics, 61 (2/3): 506- 525
Minimum number of academic references - at least 5 recent publications (since 2013) related to Audit Reporting- must be appropriately used and referenced.