The relationship between aggressive real earnings management and current and future audit fees.

 

1. Summary: Present a short summary of the case. This is typically a few sentences or a paragraph. Summaries should not be more than one page and should not be a significant part of your word count.
2. Format & Analysis: Thoroughly answer the questions one at a time. Begin your answer by copying the question in bold. Do not copy the entire case, just copy the questions.
a. The question-and-answer format will not be in APA format
b. Use APA format for your writing style and writing conventions as well as the references list and the in-text citations to the references.
c. The cases are of varying lengths. This is a general guide as your discussion has to be as long as it needs to be to present a paper that is thorough, well thought out, and demonstrates a graduate-level depth of critical thinking and analysis. The majority of the cases will require 3 to 5 pages, double-spaced, 12-point font, to receive a passing grade. (The questions and references page are not a part of the word count.)
3. References: Include a minimum of four (4) appropriate academic references. The same reference may be cited more than once but will only count as one reference. The references should be listed at the end of the paper, in the references section as per APA standards. The minimum references for each Post include
a. 1 – Knapp text (for summary only)
(Knapp, M. (2018). Contemporary auditing: Real issues and cases, 11th ed. Mason, OH: South-Western Cengage Learning. ISBN-13: 978-1-305-97081-6)

b. 1 – Assigned journal article from the course
4. Greiner, A., Kohlbeck, M. J., & Smith, T. J. (2017). The relationship between aggressive real earnings management and current and future audit fees. Auditing: A Journal Of Practice & Theory, 36(1), 85-107. doi:10.2308/ajpt-51516
5. Liu, L., Xie, X., Chang, Y., & Forgione, D. A. (2017). New clients, audit quality, and audit partner industry expertise: Evidence from Taiwan. International Journal Of Auditing, 21(3), 288-303. doi:10.1111/ijau.120
6. Lu, L. Y., Wu, H., & Yu, Y. (2017). Investment-related pressure and audit risk. Auditing: A Journal Of Practice & Theory, 36(3), 137-157. doi:10.2308/ajpt-516

 

Sample Solution

“At the outbreak of the epidemic there was no city Board of Health in existence. The last board had been totally ineffective since it lacked sufficient authority to enforce its rules and regulations, and had been denied support by the city authorities” (Carrigan, 1853). No one was trained enough nor had been exposed to yellow fever enough to understand the specific cause and protection methods. People were left in the dark with the true severity of the infection and well as close by cases. “When informed of the first cases of yellow fever that appear in summer, the newspaper press almost invariably denies the truth of the reports, and, not unfrequently, showers upon the heads of those whose duty it is to pronounce upon the character of the prevailing disease, volumes of abuse and ridicule. If the cases multiply and the sign of the times plainly indiare the approach of an epidemic, the able editors of our valuable daily journals, under what i must pronounce a most erroneous impression of their duty to the public, studiously endeavour to conceal or suppress the true state of affairs” (Fenner, 2008). Newspapers were hesitant to release stories regarding yellow fever because businesses feared that word of an epidemic would cause a quarantine to be placed on the city and trade would suffer. In their defense, there was no trained physicians that could properly treat yellow fever so it became difficult to write a story solely based on guesses. “A cartoon posted in the Daily Item mocked the handling of fever cases in New Orleans by depicting sufferers from non-fever maladies, like a toothache and a broken arm, as yellow fever cases according to the Board of Health. By doing so, the newspaper vocalized its disapproval of the Louisiana Board of Health’s handling of fever cases and the medical knowledge of the board’s employed physicians” (Runge, 2013). People were aggravated with the lack of awareness and accuracy from journals, so they found comic relief in making fun of them. “Journals began to comment on the pestilence, blaming the city council and its do-nothing policy. Under tremendous pressure from public opinion and urged on by the Mayer, the Council on july 25 finally appointed a Board of Health” (Carrigan, 1853). Pathophysiology “The phenomenon of yellow fever was like a jigsaw puzzle with a number of missing pieces. Until those pieces were discovered the picture remained distorted until the discovery of the insect vector, the irregular spread of the pestilence presented a knotty problem in logic to speculative minds” (Carrigan, 1853). U.S Army surgeon Major Walter Reed made the first important contribution to the field of medicine with his study of yellow fever. During his time of service in the Spanish-American war, Reed found soldiers dying from both yellow fever and malaria. Unsure of the cause, Reed set out to appoint a commission to investi

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