Describe the agency problem in public companies

Q: Discuss three ways of resolving the agency problem in public companies.

A: The agency problem alludes to an irreconcilable circumstance or conflict of interest between the…

Q: What are some ways a board can train their employees to be effective in its financial decision…

A: It is important that employees view the goal of the company in the same way as the board would view…

Q: discuss the three ways of resolving the agent problem in public company

A: Principal agent problem arise when there is a conflict between interest of principal and agent. This…

Q: Analyse the potential conflict of interest in modern corporations due to agency conflicts and their…

A: Conflict between shareholder and managers are called the agency conflict. This conflict occur…

Q: The most important fundamental component of an entity’s internal control isa. Effectiveness and…

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

Q: Define professional corporation

A: Answer: A corporation is a separate legal entity to be registered under state law from its managers…

Q: Describe the audit documentation review process in a public accounting firm.

A:

Q: Explain how SOX has affected public companies.

A: Sarbanes -Oxley (SOX) is the act passed by the government to address the corporate scandals. This…

Q: Setting accounting standards by the private sector is

A: The common law is developed on the basis of the particular case. It represents the development of…

Q: Who uses information from an accounting​ system?       A. ​Stockholders, investors, taxing​…

A: A set of accounting procedures and techniques is referred to as the accounting system. Its main aim…

Q: conflicts that might exist in the relationship between’ i) Shareholder and managers

A: Agency relationships are relationships which exists between two parties. One party called as the…

Q: Support for Politicization of rule making for accounting standards

A: The politicization of accounting rulemaking should not be viewed in a narrow sense. As accounting…

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: Board of Director

A: Correct Answer :- D Board  of Director.

Q: What type of organization primarily offers tax compliance auditing and consulting service A.…

A: It’s a business that provides accounting expertise, such as auditing and tax services, to…

Q: How corporate governance is defined?

A: Corporate governance can be defined using the following points:

Q: Explain the principles of agency theory and discuss the ethics of directors being able to decide…

A: The directors of the company will take care of any important decisions in the company. The company…

Q: agency problem

A: The concept of Agency is established between two persons, i.e. a principal and an agent. The…

Q: In what way Corporate governance is being applied in a government agency?

A: The corporate governance of the government authorities, through the provision of public services,…

Q: Distinguish between government and not-for-profit organizations from business entities and describe…

A: Business entities are described as those units which are formulated to provide professional…

Q: Reasons for the need for corporate governance codes

A: Introduction: Good corporate governance guarantees that the board of administrators meets on an…

Q: Who must register with the Public Company Accounting Oversight Board?

A: Public Company Accounting Oversight Board refers to the non-profit organization which regulates…

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: Explain the relationship between corporate ethics and internal control.

A: Corporate ethics: Corporate ethics are also known as business ethics. It refers to policies,…

Q: entity's control environment.

A: Control environment is a component of internal control system.

Q: Discuss the importance of good governance in the public sector

A: Introduction:- Good governance increase a positive reputation and a healthy culture within the…

Q: Explain the purpose of the Public Company Accounting Oversight Board.

A: Auditing:   In auditing, auditors verify the correctness and fair presentation of financial…

Q: Explain in brief the problems caused by accounting diversity.

A: Accounting diversity refers to differences in accounting practices followed across different…

Q: Who is responsible for overseeing corporate activities?

A: Concept Introduction:   A company holds the money invested by its shareholders and investors; hence…

Q: The Federal Accounting Standards Advisory Board (FASAB) recommends accounting principles and…

A: Financial accounting standards board (FASB): This is the organization which creates, develops, and…

Q: What is the SEC’s relationship to the Public Company Accounting Oversight Board?

A: The Sarbanes-Oxley Act created the Public Company Accounting Oversight Board to supervise the…

Q: Discuss weaknesses in the public sector accounting and finance in the usage of resources that might…

A: Accounting in the public sector is a distinct specialty with its own set of qualifications. The…

Q: Why do we need internal, external and government auditor in a company?

A: An auditor is a person who is authorized to review and verify the correctness of financial documents…

Q: What factors create a need for assurance services? Explain how these factors are important to the…

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: What is the impact of being registered with the Public Company Accounting Oversight Board?

A: The Public Company Accounting Oversight Board (PCAOB) refers to a non-profit organization that was…

Q: ce firms are regulated primarily at the federal level and which at the state level? Can you see…

A: Step 1 International governments have several existing institutions that regulate and regulate…

Q: Explain the Purpose of Corporate Governance

A: Corporate governance means that the governance that involves the members of the board, governors,…

Q: Explain an agency problem for a corporation with examples, and identify means by which the firm can…

A: An agency problem is a common problem existing in firms which arises when a conflict of interest…

Q: Define agency problems, and describe how they give rise to agency costs. Explain how a firm’s…

A: Agency problems can be defined as the obstacles arising between management of company and…