How can agency problems be resolved.

Q: Which of the following is the impact of agency cost?

A: Agency costs are internal costs incurred due to the competing interests of Shareholder i.e the…

Q: How do you think that information, such as CSR-related information, could be used to manage an…

A: When a business is contributing a defined percentage of its profits on charitable activities or…

Q: How is audit strategy mapped out?

A: Audit strategy typically means setting scope, time and direction of an audit. Forming an audit…

Q: Is the agency problem an ethical issue or an Economic issue ?

A: The agency problem is a conflict of interest

Q: What are agency problems?

A: Owners of the company are shareholders. The number of the shareholders for a corporation will be…

Q: What are agency conflicts? What groups can have agency conflicts?

A: Introduction: The problem or conflict of the entity occurs as a result of conflict between two…

Q: Explain Regulatory Provisions?

A: Regulations: The regulation is processed by which a complex system is managed under a set of rules.

Q: How can data analysis be used to identify stakeholders?

A: Stakeholder analysis involves the study of identifying, collecting, and analyzing data on different…

Q: When does an agency relationship happen

A: Agent Relationship : The official stipulations of a specific principal-agent relationship are…

Q: When is nonfinancial information relevant?

A: Non-Financial information: Non- Financial decisions are qualitative in nature and do not include…

Q: What is the difference between operating departments and service departments?

A: There are so many multinational corporations that manage difficult industries. Managing such…

Q: Why should responsibility for related transactions be divided among different departments or…

A: Internal control: Internal control is a process which ensures continuous reliability of…

Q: Why an internal control system can only provide reasonable assurance on the achievement of an…

A: Internal Control is the process designed, implemented and maintained by those  charged with…

Q: Define what is meant by an agency relationship and clearly explain what an agency problem is. Use a…

A: Agency relationship is the relationship between the principal and the agent, wherein the agent…

Q: Discuss some of the agency problems clients might encounter and explain how such agency problems can…

A: Introduction: The problem of agency occurs primarily because of the unethical relationship between…

Q: Why should accountability for similar transactions be spread across many departments or individuals?

A: This question deals with accountability for similar transactions be spread across many departments…

Q: increase

A: In finance, the agency problem refers to a conflict of interest between the management of the…

Q: What is create a more consolidated regulatory structure?

A: The question is based on the concept of financial regulatory structure of the country. Financial…

Q: Accountability in

A: Accountability is assigning roles and responsibilities of persons regarding work done by them.

Q: What is Stategic Audit and its elements? explain.

A: Large, heterogeneous corporations organize themselves into divisions to interrupt the management of…

Q: What is the conclusion of accountability and transparency in terms of policing?

A: Accountability  in terms of policing.  Police accountability ensures that officers can work together…

Q: Define agency conflict

A: Agency conflict denotes to the conflicts that arise between the agent and Principal. In the finance…

Q: What are the similarities of the Autocratic Model, custodial Model, Supportive Model, Collegial…

A: Management and owners have official authority to govern the work and the workers that work for them…

Q: What is an agency order?

A: Solution- Agency order An order to buy or sell that a broker executes with another investor. The…

Q: What is IT auditing?

A: Auditing:   Auditing refers to the procedure for providing independent report over the presentation…

Q: What are the similarities between internal and external audit

A: Audit is an official financial inspection of an organization's account, usually by an independent…

Q: what is the difference between internal and external users of information, their needs and demands…

A: Accounting Information System (AIS):   The system which helps to gather, store and process the…

Q: How are management’s actions incorporated in EVA and MVA? How are EVA and MVAinterconnected?

A: Economic added value (EVA) is a measured cash-deductible reduction of capital costs of a firm's…

Q: Explain one of the principles of Internal Control Activities.

A: Internal control means creating a control environment in the organisation which ensures safeguarding…

Q: What are the functions of the conceptual framework under IFRS?

A: International Financial Reporting Standards:   IFRS (International Financial Reporting Standards) is…

Q: What is accountability

A: The transactions that are happened in the company will be analyzed, and recorded in the first book…

Q: Discuss some of the agency problems your client might encounter and explain how such agency…

A: Some agency problems that client may face are: Conflict between owners of the firm and managers…

Q: What is the primary difference between commissions and referrals?

A: Referral fee refers to referring a service or recommending a service of CPA to other person or…

Q: What are management's and auditors' relative internal control responsibilities

A: Introduction:Management establishes internal controls. To preserve the integrity of the financial…

Q: What are Substantive Procedures?

A: Auditing:   Auditing refers to the procedure for providing independent report over the presentation…

Q: mples) through w

A: The Agency systemThe Agency device may be very popular in the modern-day commercial enterprise…

Q: Give examples of external forces that may affect human resources. Explain them briefly.

A: External forces that affect company human resources are the factors environment which are outside…

Q: Explain why monitoring alone cannot completely eliminate the agency costs

A: The costs incurred as a result of conflict of interest between company and its stakeholders is known…

Q: How do you resolve conflict of interest in an organization?

A: An organisation operates with individuals having different beliefs, tendencies and backgrounds.…

Q: Explain why an organisation can be considered to be a 'nexus of contracts' in the context of agency…

A: Contract is the mutual agreement between two parties where one party agrees to provide goods or…

Q: What kinds of functional responsibilities should be performed by different departments or personsin…

A: Internal Control System: Internal controls system establishes the control within an organization to…

Q: What are the strengths and weaknesses of Agency theory and stakeholders?

A: Agency Theory A theory that is used to explain and resolve issues in the relationship between…

Q: What are the responsibilities of the PCAOB?

A: Introduction : The public company accounting oversight board is known as PCAOB. To monitor the…

Q: Define agency problems, and describe how they give rise to agency costs.

A: Agency problems occur when the managers use the firm's resources to invest in projects that may not…

Q: What is Management Responsible for in regards to Internal Control?

A: Internal control: Internal control is a process which ensures continuous reliability of…