Reference no: EM131042953 , Length: word count:2000
Assessment Criteria: This task will generally be assessed in terms of the following criteria:
1. Effectiveness of communication: readability, grammar, spelling, neatness, completeness and presentation.
2. Demonstrated competency and understanding: This will be evidenced by the student's ability to be dialectical in the discussion of contentious issues. The marker will pay attention to the accuracy of the content, coverage of relevant issues, structure of argument, English expressions, absence of plagiarism, concise writing style, and referencing style.
3. Evidence of research - This will be evidenced by the references used and the inclusion of a bibliography. Note: Students are responsible for their submissions and they must ensure that they submit their own original work. Any act of plagiarism will be severely penalised. Plagiarism is presenting someone else work as your own and is a serious offence with serious consequences. For more details on plagiarism, students can refer to Learnline.
# Earnings management is now a very common term in financial reporting. It refers to some of the management practices whereby accounting items are presented in a manner to achieve a certain economic outcome. The treatment of such accounts may or may not be in accordance with all relevant accounting principles and standards. It is believed that the auditor should have a role in detecting earnings management and in determining the extent of the ‘manipulation' in arriving at an appropriate audit conclusion.
Required
1. Discuss the meaning of earnings management and how it affects the final stages of a financial report audit.
2. Identify means whereby the auditor may reduce earnings management. In answering these two questions you should search articles on earnings management and its relationship with the role of the auditor. (Refer to published articles in this area).
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