Hello, I have a research paper due on April 6 th .10 pages APA Format. The paper Should include at least ten sources, of which at least four should be articles from scholarly journals. The research...

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COLLUSION IN AUDITING
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02h Apr 2022
Table of Contents
Introduction                                         3
Background                                        3
Questions considered in Research                            4
Research Methodology                                4
Literature review                                    5
Findings and discussions                                8
Recommendations                                    9
Conclusion                                        10
References                                        11
Introduction
Following the global financial crisis as well as the audit failures controversies of the largest corporations such as Tyco, Enron, and WorldCom in the early twenty-first century, everyone wants to improve the openness of company functions and the dependability of accounting records (Jones, 2011). Shareholders, investors, and creditors make decisions based on publicly available financial statements. As a result of the pressure on firm personnel to meet financial Objectives and management self-interest, there is a risk of collaboration between the owner, manager, and auditors, which has a direct impact on the financial report (Hu, 2015).
Background
The concept of auditing has existed since ancient times, but due to controversies and fraud, auditing has received increased attention (Shamoo, 1989). An audit is the examination and examination of final reports by someone who is not affiliated with the organization, such as a balance sheet, income statement, stockholders' equity, and cash flow statement. It is critical that an auditor adhere to all of the government's standards (PwC Australia, 2017). The leadership wants to demonstrate that their company is profitable and in good financial shape. Complicity between owners, managers or auditor is possible in this circumstance, resulting in collusion. Collusion is defined as "secret, extralegal agreements" between the three participants to behave in accordance that are not meant. Collusion can exist between an owner and a manager, a manager and an auditor, or between three people: an owner, a manager, and an auditor (Strausz, 1997).
Questions considered in Research:
The goal of this study is to look into probable scenarios of manager-auditor collusion, as well as the magnitude of the resulting distortion. The possibility of minimizing collaboration will also be investigated.
· What are the causes for the owner, manager, and auditor colluding?
· What are the possible circumstances for collusion?
· What influence does collusion have on businesses?
· What can be done to reduce the discrepancy between the manager and the auditor so that the financial report reflects accurate figures?
Research Methodology:
The word "research methodology" refers to the approach used in research to describe, gather, interpret, and predict phenomena. Primary and secondary research are the two types of research (Vickery, 1970). Primary research is data that is gathered 'firsthand' by the researcher and is 'factual.' Secondary research, on the other hand, is when a researcher uses existing data on a topic to 'analyses and understand' it. It's also known as "document analysis" or "desktop research" (Kirsch & Sullivan 1992). A concept and evaluation of how investigation does or should process that is utilized as the foundation theory and analysis for secondary multisource research.
This is secondary research because it was conducted utilizing multi-source document analysis. The study collects pertinent data from secondary sources such as working papers, peer-reviewed journal publications, previous research papers, reports, newspapers, and official websites (Weinberg, 2002)
Literature review
The examination, summary, and analysis of the accessible information relating to our study topic is known as a literature review (Veal, 2005). The literature review is an important part of the research process. While researching a specific topic, literature reviews are used to provide an overview of sources.
Tirole (1986) investigates the various causes of collusion as well as possible solutions. In the three-level principal–supervisor–agent paradigm, each person is seen to have their own role. The principal's job is to keep an eye on the supervisor, while the supervisor's job is to keep an eye on the agent. In this model, he discovered how a little carelessness might cascade down a three-tier hierarchy: inappropriate rewards for the supervisor to screen supervisor led to low supervisory effort, which leads to low productive exertion at the bottom. In a principal-supervisor-agent hierarchy, he discovered that side payments might lead to collusion, resulting in a loss of efficiency. Long-term connections are often formed as a result of side payments in side contracts, which increase productivity while also providing potential for collusion. The cooperation occurs when the principal receives tampered with information as a result of his carelessness. There are three different ways to receive modified data. One of them is withholding information from one member in order to benefit another member, and then sharing that knowledge in able to profit both members. The second step is to...