In fact, through the participation of senior and junior employees and the establishment of effective interaction to

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In fact, through the participation of senior and junior employees and the establishment of effective interaction to eliminate professional doubts. Ensuring an additional record of professional skepticism about individual participation is beneficial to the company's overall efforts to improve this situation. Therefore, the results may not be generalizable to other settings and auditors of audit firms in different locations. Third, the use of decision-making practices in an experimental setting may claim that participating auditors obtain additional information in their natural working environment.

A natural audit setup can be used to provide a more general environment for auditing audit decisions, thus improving outcomes. Future research is likely to familiarize the use of many judgment scenarios outside of sales to investigate the possibility of fraud and material misrepresentation. In short, all stakeholders have a responsibility to strengthen the application of skepticism in their fields and between each other.

We propose a "continuum of professional skepticism," recognizing that the proper application of professional skepticism will depend on the risk characteristics of the accounts and claims. We have also listed the different structural levels, where professional skepticism applies and where it could threaten its proper application. It is to believe that if the approach to supervision and / or inspection is misaligned with the relevant audit risk, supervision will actually threaten the proper application of the auditors' suspicions. Finally, with the example provided some ideas and suggestions on how to strengthen the auditor's application of professional skepticism and how other key stakeholders can contribute to its effective application.

a) Positive Accounting Theory models the political processes involving the relationship between the firm and other parties interested in the firm. How does the article demonstrate political processes? In your answer, explain what, if anything, firms in the pharmaceutical industry can do to manage political costs?

b) What is the potential impact of the increased fines on the content of the accounting reports of firms in the pharmaceutical industry, particularly in relation to accounting information?

c) What do you expect will be the impact of the increased fines in the (i) earnings and (ii) management compensation contracts, of firms in the pharmaceuticals industry?