ATPB 313 – Accounting Theory & Practice
SEM 2 2013/2014
(100 MARKS -10%)
Instruction: Answer all of the following questions (10 marks for each question).
CASE STUDY 1 (50 marks)
Title: Motivation for earnings management among auditors in Malaysia
Farisha, H., Hafiza, A. H., and Zalailah, S. (2012). Motivation for earnings management among auditors in Malaysia, Procedia - Social and Behavioral Sciences, 65(3), 239-246.
1. In your own words, summarize the article. In summarizing the article, you should include the discussed background, problem statement, literature review, methodology, findings, and conclusion.
2. The authors argued that “the corporate scandal of the Transmile Group Berhad can be equated to the case of the Enron and WorldCom financial accounting scandals in the US many years ago”. Discuss the details of the aforementioned corporate scandal cases.
3. The article employs survey method to study the issue. Questionnaires were issued to auditors of the sampled audit firms through the mail in March 2012. How far do you think earnings management should be controlled through the audit process or by other means? Does this problem merit further control?
4. Do you think many companies in Malaysia engage in earnings management? Should they? Provide relevant justifications.
5. What are the possible implications of creative accounting?
CASE STUDY 2 (50 marks)
Title: Is IFRS for SMEs For Your Company?
Miller, R.S. (June 2010). Is IFRS for SMEs For Your Company?, financial executive, 16. Retrieved from www.financialexecutives.org (assessed on 1 November 2013).
1. Summarize the differences between Full IFRS and IFRS for SME.
2. Discuss FIVE (5) key challenges that might be faced by the Malaysian key players in adopting the IFRS for SMEs.
3. In your opinion, how does this adoption influence the performance of SMEs. Provide your reasoning.
4. “SMEs are already overburdened with regulations and may
References: and Appendices (articles/ paper cuttings/any hardcopy of the references) d. Plagiarism Plagiarism or any other form or cheating will not be tolerated. Your report should consist of your discussion of the topic and not a copy-paste version of the summary from the internet. If a group is deemed to be guilty of plagiarism or cheating, no marks will be given to the group. Such conduct obviously constitutes unethical behavior.