Reference no: EM132632917

Question -

PART1: 1. Describe how (and why) the information processing systems of expert accountants might be different from those of accounting students. How might the expertise of experienced accounting practitioners be effectively passed on to accounting students?

2. Most people are not good intuitive statisticians. Discuss this statement in an accounting context, drawing on research using the probabilistic model.

3. Compare and contrast the efficient markets hypothesis and human judgment theory. Are they inconsistent with each other? Explain

4. What alternatives exeunt for improving the format and presentation of accounting information? What is the research evidence regarding the merit of the various alternatives?

5. What is more important for an organization - the 'right' physical assets or the 'right' people? Explain.

6. Accounting is a function of human behavior and activity. As such, is not all accounting research behavioral? Justify your answer.

7. List nine or more factors that will influence the accounting system adopted by a firm and the information disclosed. Which of these factors is a direct function of human behavior?

PART2: 1. General acceptance of accounting standards is important to the accounting profession. By whom does the profession require general acceptance of the standards, and why is it important to the profession?

2. The text describes a theory of regulatory capture.

(a) What is regulatory capture?

(b) How can standard setting bodies such as the Fiji Institute of Accountants avoid regulatory capture?

3. Provide an argument for the regulatory approach to standard setting, then, provide an argument for the free-market approach to standard setting. Finally, analyze the arguments and conclude in favor of one approach rather than the other (which approach you favor is up to you, but you must decide which which approach is better, at least under a set of assumed circumstances).

4. If the IASB concludes that the economic consequences of a standard it is about to approve will disadvantage a powerful lobby group, what should the IASB do about the situation?

5. The setting of accounting standards requires some assessment of economic and other benefits and costs. What are the ethical issues involved? Is it possible to avoid ethical issues in developing accounting standards?

6. In 2001 and 2002 there were several high-profile corporate collapses in the United States associated with misleading financial statements and accounting practices. Following these collapse, new laws were introduced to improve the quality of financial reporting.

(a) In your opinion, will further regulation prevent deliberately misleading reporting? Explain.

(b) Are additional laws likely to prevent corporate collapses? Why or why not?

(c) How important is the enforcement of financial reporting requirements in promoting high quality reporting?