When does an agency problem happen?

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: 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: What is responsibility accounting?

A:

Q: Explain how materiality affectsaudit reporting decisions.

A: American Institute of Certified Public Accountants (AICPA): AICPA is the organization which supports…

Q: What is meant by the phrase management by exception?

A:

Q: What is management fraud?

A: Fraud:   It is an intentional misappropriation of the assets or the financial records of an…

Q: What is the difference between "Comptroller" and "Controller"?

A: Meaning - Comptroller is the person responsible for audits and expenses of the government. The…

Q: Explain principal (agency relationships)

A: Answer: Agent: An agent is one who provides work on principal’s behalf.  Principal approves agent to…

Q: When does an agency relationship happen

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

Q: What is an external auditor?

A: Auditor is a person who audits the accounts of the business.

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: Can responsibility be delegated? Explain?

A: No,authority can be delegated but responsibility is absolute and cannot be delegated.

Q: anuty What general internal control v

A: Given case is: All-Around Sound Co. discovered a fraud whereby one of its front office…

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: 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: 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 discretionary reporting?

A:

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 makes information irrelevant to decision making?

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

Q: What is management by exception?

A: Management by Exception: Management by exception is one of the management styles where the…

Q: What is ALCO and what important duties do they perform?

A: A resource with economic value that a person, company, or country owns or controls with the…

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 an agency problem?

A: Agency problems also known as principal-agent problems  are conflicts of interest between managers…

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: 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 is a whistleblower?

A: A whistleblower anybody who has insider info of the criminal behavior taking place in an…

Q: What is organization structure?

A: Organisation structure is a system used to define a hierarchy within an organization. It identifies…

Q: What is the SEC and what role does it play?

A: SEC stands for Securities and Exchange Commission. It is an agency of United States, which is a…

Q: What is the internal control principle?

A: Internal control means to control and check everything related to management. It ensures that the…

Q: mples) through w

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

Q: Define agency cost or problem

A: Agency problem is that problem which is a conflict of interest in a relationship where one side…

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: How can agency problems be resolved.

A: A principal is one who hires an agent to perform some of his duties. Hence, it is the responsibility…

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 bribery?

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

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…