1 ACCOUNTING AND AGENCY THEORY LEARNING OUTCOMES After completing this chapter, the reader will be able:
• (a) to explain what agency theory is,
• (b) to evaluate any statement as being one of fact rather than of opinion and vice versa, • (c) to understand the differences between a theory, a theorem, a postulate, a hypothesis and a law, • (d) to appreciate the need to surface assumptions when appraising statements of any kind.