Answer THREE questions.
Each question and each part of a question is weighted equally unless otherwise stated.

Question One
“While impression management communication is often theorized as manipulative and void
of real information content, this paper evidences that impression management serves both
self-presentation and information-sharing purposes. These findings suggest that the
information-sharing and self-presentation objectives of impression management are not
necessarily mutually exclusive.”
Aerts, Walter and Thewissen, James and Yan, Beibei, (2018) The Informativeness of
Impression Management – Financial Analysts and Rhetorical Style of CEO Letters (April 2,
2018). Pacific Accounting Review, Forthcoming. Available at SSRN:
https://ssrn.com/abstract=3154790
Required:
Critically explore the role of narrative reporting in providing useful information to investors and
discuss the implication for the development of narrative reporting in the future with specific
consideration for the Strategic Report.

Question Two
“The research finds that contemporary reporting processes, and in particular those set
out in the King III Code and the International Integrated Reporting Framework, influence
cognitive frames enhancing board oversight and assisting organisations in managing
complexity. This results in increased awareness of the impact of ESG issues together
with a broader view of value creation despite investor disinterest.”
Carol A. Adams, (2017) “Conceptualising the contemporary corporate value creation
process”, Accounting, Auditing & Accountability Journal, Vol. 30 Issue: 4, pp.906-931,
Required:
Explore whether the ideas in the Integrated Reporting Framework allow the embedding of the UN
Sustainable Development Goals and other environmental, social and governance issues within
corporate identity and critique whether lack of investor interest diminishes this impact.

Question Three
EITHER:
“While appealing to the imagination, rational myths mobilize a language that resonates
with the actors and employs a narrative that appears logical. The role of rational myths is
to stimulate and motivate actors to engage in cooperative action in pursuit of a collective
purpose (Hatchuel and Weil, 1992; Hatchuel, 1998)”. In the research by Gabassier,
Rodrigue and Arjalies(2018) this “conceptualization acted as a springboard for IR
adoption, with the mythical dimension residing in the promise that IR had the potential to
portray global performance in light of the company’s own foundational myth.”
Delphine Gibassier, Michelle Rodrigue, Diane-Laure Arjaliès, (2018) ““Integrated
reporting is like God: no one has met Him, but everybody talks about Him”: The power of
myths in the adoption of management innovations”, Accounting, Auditing & Accountability
Journal, Vol. 31 Issue: 5, pp.1349-1380
Required:
Critically explore how Integrated Reporting may appear to be a rational myth and the implications
that this may have on its wider adoption internationally.
OR
“Preparers are often suspicious of the motives of the IIRC professionals and express
concerns about the performance and appearance of the Integrated Report. They tend to
believe that the composition of the IIRC Board impairs the credibility of the Integrated Report
and negatively influences their trust of this initiative. Furthermore, preparers are concerned
about the credibility of a single report and seem uncertain of the benefits or the beneficiaries
of IR.”
Panagioula P Jones MJb
(2017) It’s a matter of trust: Exploring the perceptions of Integrated
Reporting preparers Critical Perspectives on Accounting Volume 48 pp1 -20.
Required:
Using Diffusion Theory, explore the findings of this study and discuss the impact on the future
adoption of the integrated reporting framework.

Question Four
“The research shows there is increased use of rhetorical strategies in non-compliance
explanations in 2011/12 compared with 2004/05, and the strategies found seem more
orientated towards misleading explanations than meaningful convincing rationales. The use of
such strategies may lead to mistrust by the market or may damage the ‘comply-or-explain’
system itself. “
Philip J.Shrives Niamh M.Brennan (2017) Explanations for corporate governance noncompliance: A rhetorical analysis Critical Perspectives on Accounting Volume 49, December
2017, Pages 31-56
Required:
Critically explore the role of comply or explain disclosure in corporate governance in promoting high
quality governance and evaluate the impact of this on using disclosure as a tool to change corporate
behaviour (e.g. in the arena of diversity and pay).

Question Five
“Over the past decade, a number of accounting and financial reporting frauds have led to
lost stock wealth, destroyed public trust, and a worldwide recession that called for
necessary reform. Regulatory responses and systemic reforms quickly followed, and we
show that, while necessary, these reforms are insufficient……..We argue that virtuous
professionalism is necessary for restoring the public servant identity of the accounting
professional. We conclude that efforts to restore financial reporting systems should begin
with reforms that restore professional identity shaped by virtues.”
Lail, B., MacGregor, J., Marcum, J. ,Steubs M (2017) Virtuous Professionalism in
Accountants to Avoid Fraud and Restore Financial Reporting. Journal of Business
Ethics (2017) 140: 687. https://doi.org/10.1007/s10551-015-2875-y
Required:
Critically evaluate the assertion that “the restoration of financial reporting systems should begin with
reforms that restore professional identity shaped by virtues.” Illustrate your answer with reference
to the Professional Codes and the work of ICAS in this field.

Question Six
“The paper contends that the process of moral condemnation of auditors, which can take
place in the wake of fraudulent financial statements emerging in the public sphere, bears
resemblance to sacrificial rituals as theorized by René Girard.
From this perspective, auditors and accounting can be thought of as modern pharmakoi,
constituting a reservoir of victims to sacrifice when fraud threatens the smooth-functioning
of capital markets.
As sacrificial victims, auditors are first demonized. As soon as their punishment brings
back order, they come to be venerated.
They are then quickly de-demonized at the expense of “secondary scapegoats” (notably
corrupted managers).”
Guénin-Paracini, Henri & Gendron, Yves, 2010. “Auditors as modern pharmakoi:
Legitimacy paradoxes and the production of economic order,” Critical Perspectives on
Accounting Elsevier, vol. 21(2), pages 134-158.
Required:
Critically explore the impact of responses to the 2018 Carillion Plc scandal on the auditing and
regulatory functions in the UK and discuss whether this could be considered evidence that auditing
and accounting is a modern pharmakoi.

Question Seven
“We encourage reporters to objectively review revenue recognition policies, and
ask themselves whether they convey how the company generates revenue and
how it is recognised.”
https://www.frc.org.uk/getattachment/771cfc4b-3a7c-4e2e-96b6-
e414c274a64d/Corporate-Reporting-Review-Technical-Findings-2017-18.pdf
accessed 27/12/18
Required:
Critically explore whether the new IFRS 15 Revenue Recognition achieves objective reporting of
revenue.

Question Eight
“The World Bank has been a long-term supporter of work to develop a single set
of high-quality global accounting standards.” World Bank, 2017
https://www.ifrs.org/use-around-the-world/why-global-accounting-standards/
accessed 27/12/18
Required:
Critically explore whether the development of the IASB International Financial Reporting Standards
have delivered a single set of high quality global accounting standards as envisaged by the World
Bank.