Reference no: EM132796604

Problem 1: Engagement letters include all of the following except:

Select one:

A. information about the audit fee

B. arrangements involving the use of experts

C. a list of additional services that will be provided

D. a list of adjusting journal entries

Problem 2: In the context of agency theory, information asymmetry refers to the idea that:

Select one:

A. information can vary in its relevance

B. management has more information about the entity's true financial position than do the absentee owners

C. information can vary in its comparability

D. management will not act in the best interests of the absentee owners