Question: Could you kindly help with this questions please? QUESTION 1 (30 MARKS) a) Explain a philosophy behind the audit demand in aligned with an agency

Could you kindly help with this questions please?

Could you kindly help with this questions please? QUESTION 1 (30 MARKS)

QUESTION 1 (30 MARKS) a) Explain a philosophy behind the audit demand in aligned with an agency theory. (5 marks) b) Discuss briefly a differentiation between auditor's assurance service than other professional assurance service. (5 marks) c) Identify THREE (3) determinants (other than auditor independence and competency) and describe how the determinant will affect audit quality. (6 marks) d) Discuss the importance associations of audit quality and earnings quality reported in the financial statement. You can use certain examples to support your discussion. (5 marks) e) DeAngelo (1981) defined that audit quality as the auditor's ability to detect material misstatement (competency) and ability to report the misstatement objectively (independency). Deangelo (1981) also argued that large audit firms (Big8/6/5/4) more capable to provide better audit quality than smaller audit firms. However, many recent accounting scandals around the globe involved the large audit firms. i) Discuss any THREE (3) potential factors that may result in the above circumstances. (6 marks) ii) What an importance auditor's attribute is critically required to cover up the weaknesses in Deangelo's (1981) definition of audit quality. Provide appropriate justifications to your opinion

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