What is the cause of the agency problem and how do we try to solve it?

Q: What are the objectives of the internal control?

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

Q: What does the Good internal control helps ensure?

A:

Q: Whaat is accountability

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

Q: How is EDI more than technology? What unique control problems may it pose?

A:

Q: What are agency problems?

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

Q: When does an agency relationship happen

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

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: What is the mechanism via which Naics operates?

A: It is about the mechanism via which Naics operates:

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: increase

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

Q: What is the link between the internal control environment and accountability?

A:

Q: What should a MNC do to prevent bribery?

A: Bribery is the act of giving or receiving something of value in exchange for some kind of influence…

Q: agency problem

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

Q: Define agency conflict

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

Q: When does an agency problem happen?

A: Agency problem is the probelm of difference in opinion of management and the shareholders.

Q: What makes information irrelevant to decision making?

A: Irrelevant information is a part of the information collected for decision-making from various…

Q: What is the purpose of organizations and why do they exist?

A: The organization  is a process that  involves the people , their strong commitment  and efforts to…

Q: What does Internal Control provide reasonable assurance for?

A: Internal Controls:   Internal controls are the controls established within an organization to check…

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: ways on how to avoid conflict of interest in an organization.

A: Conflict of interest in an organization arises when the management and the employees do no share…

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: How does power gain legitimacy and become legitimate authority?

A: A legitimate authority would seem to be one that has the right for its judgments and laws to be…

Q: What does it mean for a source to be objective?

A: Objective means anything which is free from emotions, personal prejudices or bias.

Q: What is Agency theory ?

A: Agency theory Agency theory explains the connection between the principal and agent. concerned…

Q: Explain how a possible conflict between neutrality and prudence could arise and how the conflict…

A: Neutrality and Prudence are two characteristics of reliability of accounting information. Neutrality…

Q: briefly, what is the role of the clearinghouse, and is it important?

A: Clearance is very important to meet buyers with sellers and to make transactions possible between…

Q: what are the advantages and disadvantages of decentralization?

A: Decentralization: When the power of decision making is transferred from the higher authority to…

Q: What is feedback and how is it useful in an information system?

A: Definition: Accounting information system: The system which helps to gather, store, and process the…

Q: mples) through w

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

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: Why are the realization and matching principles important? Only the importance

A: Accounting principles: These are the assumption, concepts, and guidelines necessary to prepare and…

Q: What is an audit program

A: Audit program An audit programme is a detailed, written statement designed by the auditor indicating…

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: Explain how a possible conflict between neutrality and prudence could arise and how the conflict…

A: Neutrality and Prudence are two characteristics of reliability of accounting information. Neutrality…

Q: What is COSO? What is the PCAOB?  Why are they important?

A: Committee of Sponsoring Organizations of the Tread way Commission (COSO) is an organization formed…

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

A: An organizational behavior model is defined as the basic structure that is used to represent the…