What are assumptions-focus and hypothesis of agency theroy

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Reference no: EM131705268

Answer the following questions reguarding Acency Theory:

a. What are the assumptions, focus, and hypothesis of Agency Theory?

b. How does oppertunistic behavior, or moral hazard apply to agency theory?

c. How does an audit of financial statements pertain to agency theory?

2. What is critical accounting, and in what way does it differ from all of other discussed in the text?

3. Why did accounting and reporting practices in the U.S. prior to 1930 not meet the needs of shareholder investors?

4. Compare and contrast the characteristics of the CAP, APB, & FASB.

5. How is conservatism defined from a prepares orientation? Which conservatism goal should take precedence when conservatism criteria conflict?

Reference no: EM131705268

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