Which Is Not a Way That the Analyst Can Inspect

question 59

Multiple Choice

Which is not a way that the analyst can inspect a record?

• A) checking for consistency in report font types and logo placement
• B) looking for opportunities for improving the recording form design
• C) observing the number and type of transactions
• D) watching for instances where the computer can simplify the work

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Definitions:

Agency Problems

Conflicts of interest between the principals (owners or shareholders) and agents (managers) of a company, often arising from differing motives or information asymmetry.

Control Problems

Issues that arise in contexts where one party (the principal) delegates tasks to another party (the agent), who may have different interests or information.

Proxy Fights

Efforts by a group of shareholders to alter company management or policies by persuading other shareholders to vote in a way that is contrary to the current management's wishes.

Agency Problem

A conflict of interest arising between parties in a transaction, typically between the principals (owners) and the agents (managers) of a company, where the agent may not act in the best interest of the principal.