Agency Theory Can Be Described as the Theory of

question 64

Multiple Choice

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

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Definitions:

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Established principle or regulation recognized and enforced by law that grants or restricts actions and grants entitlements to individuals.

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The Health Insurance Portability and Accountability Act, a U.S. law designed to provide privacy standards to protect patients' medical records and other health information provided to health plans, doctors, hospitals, and other health care providers.