1. The statement in relation to issues for auditors in relation to agency theory that is not true is:

Select one:

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

2. With respect to the concept of sustainability which of these statements is not true?

Select one:

a. A sustainable entity needs to consider objectives relating to economic, social and environmental performance

b. Sustainability is about eco-efficiency and eco-justice

c. None of the statements are untrue

d. Recently the focus in the sustainability debate has been on eco-efficiency

3. Which of these is not a criticism of historical cost accounting?

Select one:

a. It relegates the balance sheet to a secondary position

b. It has been used by business over many centuries

c. It is not objective and is open to manipulation

d. Historical cost overstates profit in times of rising prices