Discuss Bonner’s suggestion that third party users may use different approaches when evaluating… 1 answer below »

The material in the final three chapters: address JDM from the perspective of third parties who rely upon the judgment of accounting professionals; puts forward some suggestions for improving JDM; suggests some research areas which could be pursued. In Chapter 8, Bonner discusses the third party users of the judgements and decisions of accounting professionals and asks whether these users understand the factors that cause variation, that is high or low JDM. The list of third party users Bonner identifies includes: Managers Investors Industry regulators Government Analysts Loan Officers Auditors Bonner also proposes several theories which might offer insights into how third party users of accounting information might evaluate the quality of the information.
Required: Discuss Bonner’s suggestion that third party users may use different approaches when evaluating the quality of the accounting information and the JDM behind the information. Do you agree with her suggestions? Why or why not? Briefly evaluate the theories Bonner suggests may help understand how third party users evaluate the quality of the information. Do they make sense? Why or why not? Using the company you analyzed in your last assignment discuss how the third party users involved assessed the JDM and the accounting information available to them. Were their approaches consistent with Bonner’s suggestions? Were there other approaches the third party users considered when evaluating the JDM and the information that was produced? What, if any, are the implications to the producers of the accounting information if third party users have different approaches to evaluating JDM and the quality of the information? Based upon your above analysis what recommendations would you make in terms of any changes to Bonner’s approach to how third party users evaluate the quality of accounting information and the JDM behind the information?