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AGENCY THEORY
An agency relationship may be defined as a contract under which one or more people (the principals) hire another person (the agent) to perform some services on their behalf, and hand over some choice making authority to that agent. In the financial management framework, agency connection exists among:
(a) Shareholders and Managers(b) Debt holders and Shareholders
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Clean Opinion - AUDIT opinion not qualified for any material scope restrictions nor departures from GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP). Also called UNQUALIFIED OPINION
#how it works
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