1. Discuss the following:
■ Among the different forms of audit opinions, which one should have most effect on stock prices? Discuss the reasons.
■ What is and what should be the role of the external auditor with regard to the protection of the public interest in terms of their investment decisions in public companies?
2. Discuss the role of the external auditor in reducing the information asymmetry between company management and commercial banks. What are the main findings of empirical studies with regard to the relation between audit report and lending decisions?