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A follow-on to A40510, Audit & Assurance Services, an introductory course in the undergraduate curricula, A70511 probes issues central to audit failure: earnings management, the restatements that earnings management drive, and the litigation that may follow. Learning Objectives Following completion of A70511, students will understand: The role of risk in audit practice and the means to accomplish earnings management. For example, how do companies smooth earnings and detract from the quality of earnings? The lenses through which assurers see engagement risk and engagement strategies. For example, how have assurers approached managements= assertions traditionally? An accountants role in and an assurers responsibility for financial statement restatements. For example, how do restatements play out in practice? An accountants role in securities litigation. For example, how do GAAP violations map to negotiated damage settlements?
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