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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Agency Theory
In terms of information asymmetry how does the unequal knowledge between the parties of a transaction result in unusual advantage to the party with additional knowledge. For example between a company and its stakeholders
The problems of information asymmetry (e.g. between providers and users of capital) for the stock market may be relevant to FM but is not relevant to the AA exam.
Perhaps you have posted your query to the wrong forum?
(The “postulates” of agency theory were last examinable in an ACCA auditing exam 20 years ago when the examiner thought this was important. However, an auditor doesn’t have to know this theory to be a good auditor – or to pass exams.)