The Statement in Relation to Issues for Auditors in Relation

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