A stream of academic literature has emerged that examines the association between ‘financial report restatements’, which are indicators of financial report misstatements in the form of frauds, and a number of factors (variables); e.g., see the unit’s list of prescribed research articles.
The purpose of this research project is to produce a ‘research proposal’ that examines factors or variables that are likely to affect the incidence of financial reporting fraud, e.g., as evidenced by ‘financial report restatements’.
That is, choose and investigate a research question that examines the association between the incidence of financial reporting fraud (restatements) and a factor of interest.
In other words, the general research question is in the form of:
The association between financial reporting fraud and the quality of auditors (i.e. Big five auditors), the audit fee, and the size of the company.
**Require to:
Present relevant theory and possibly develop new theory for hypothesis/hypotheses
(Literature review, theory development – next in a separate section including specific hypothesis 1+ 2)
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