22908 Economics of Auditing and Assurance Services

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Subject level:

Undergraduate

Handbook description

The subject introduces students to the notion of scientific and applied research in auditing and corporate governance. Building on these paradigms, students are taught how to identify research questions, develop theoretical frameworks and test empirically their theories.

Subject objectives/outcomes

On successful completion of this subject students should be able to:

1. understand the foundations of contemporary accounting research in the areas of economics of auditing and corporate governance
2. be familiar with key statistical issues in the areas of research covered in the subject
3. able to critically evaluate and appraise contemporary research in the economics of auditing and corporate governance.

It contributes specifically to the following Program Learning Objectives:

• independently construct ideas to address business issues (PLO 2.1)
• convey information clearly and fluently, in a high quality format appropriate for their audience (PLO 3.1).

Contribution to course aims and graduate attributes

This subject provides an in-depth study of the empirical economics of auditing and corporate governance research at an advanced level, which is one of the core streams in the study of accounting. It therefore provides an essential set of ideas, concepts, skills and techniques for students to address business issues at honours level study in accounting.

Teaching and learning strategies

Students attend a three-hour seminar which is a mix of formal presentations by the instructor, presentations by students on allocated papers and discussion of a selected research problem or key questions distributed in advance on the topic.

Formal presentations by students on papers in the reading lists are used to gauge student understanding of the research ideas and the research process used in the studies, and the implications of the research for practice and further research. Discussion among the student group is used to gauge the ability of the students to defend their interpretation of the readings and to challenge alternative views. Key questions are set for each topic and the students use the questions to guide their reading.

Content

• Overview of the early development of the economics of auditing and corporate governance research
• Examine the main research findings of the current economics of auditing and corporate governance research
• Explore the disciplinary and theoretical bases of auditing and corporate governance research
• Examine the major and alternative research methods used in auditing and corporate governance research
• Consider possible future developments in the economics of auditing and corporate governance research
• Examine possible relations between research in auditing and corporate governance, practice and regulation
• Develop skills in undertaking and evaluating audit and corporate governance research
• Consider the relations between auditor and governance attributes, and broader financial accounting issues

Assessment

Assessment Item 1: Assignment (Individual)

Assessment Item 2: Presentation (Individual)

Assessment Item 3: Final exam (Open book)

Minimum requirements

Students must achieve at least 50% of the subject’s total marks.