ACCA P1 Principle - Agent Relationships - Agency Theory

[@jefferyowusu5882]

is a nice piece of work. simple layout and well break down

[@AccountingCollege]

Thanks

[@AccountingCollege]

Link to P1 playlist kzbin.info/aero/PLehWgIAl6L2BMbgmOfJSgyXpj4RaR9oBq

[@KrishikaSinghDublin]

Good one great work

[@AccountingCollege]

Thanks

[@curshvencadoo7196]

3:54..Why is there an agency relationship between an auditor and shareholder?The auditors must be independent to give their opinion..

[@AccountingCollege]

Good question, the shareholder as the ultimate owner of the organisation employ auditors to perform an audit. Since auditors act on behalf of the shareholders they become agents while the shareholders are the principles. Auditors must provide an independent review of an organisations financial position. They should be independent from the organisation, so that the audit opinion will not be influenced by any relationship between them.

[@curshvencadoo7196]

Ok I get it.Thanks for answering, great video by the way

[@AccountingCollege]

Anytime, glad you like the video.