The Statement in Relation to Issues for Auditors in Relation

question 10

Multiple Choice

The statement in relation to issues for auditors in relation to agency theory that is not true is:

• A)Auditors have a bonding and monitoring role in agency theory
• B)Smaller auditing firms have more to lose by failing to report a breach in a clients accounts than larger audit firms
• C)Research in the US did not support the proposition that promoters of initial public sharer offerings using a higher quality auditors would have lower holdings of shares than promoters in companies using lower quality auditors
• D)Researchers have refined the concept of high quality auditors to include those who specialise in certain industries or contracts

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Definitions:

Odd Behaviors

Actions or reactions that deviate from what is considered normal or expected in a specific cultural or social context.

Pinching

The act of squeezing the skin and flesh between the thumb and a finger, which can be gentle or forceful.

Proximity-Seeking

Describes a behavior observed primarily in children, where they seek physical or emotional closeness to their caregivers for safety and security.

Contact-Maintaining

The behaviors or strategies employed to keep in touch or stay connected with others.