Agency theory can be described as the theory of
A. hiring an agency to review the work of the management, in this case it is the auditor.
B. when the finance function is outsourced to an outside party, and the auditor is required to audit the outside party’s work.
C. the relationship between the owner and the management of the business when the owner is not the manager of the business.
D. none of the above
Answer:C
Agency theory can be described as the theory of
A. hiring an agency to review the work of the management, in this case it is the auditor. B. when the finance function is outsourced to an outside party, and the auditor is required to audit the outside party’s work. C. the relationship between the owner and the management of the business when the owner is not the manager of the business. D. none of the above