- CFA Exams
- CFA Exam: Level I 2021
- Study Session 10. Corporate Finance (1)
- Reading 31. Introduction to Corporate Governance and Other ESG Considerations
- Subject 3. Principal-Agent and Other Relationships in Corporate Governance
CFA Practice Question
In agency theory, when a corporation hires an auditor, the auditor is a(n) ______.
B. principal
C. loser
A. agent
B. principal
C. loser
Correct Answer: A
User Contributed Comments 16
| User | Comment |
|---|---|
| Masterkang | No, he is a loser! |
| jasonk | I really appreciate the sense of humor occasionally shown in the questions. Go nuts otherwise. |
| surob | Yep, big time loser. :) |
| cp24 | Sometimes the auditor can be a lobbyist who is a loser. |
| soarer1 | LOL |
| miteymouse | The fact that it is unexpected just makes it so much funnier. |
| soltari007 | haha good one! |
| kennif | LOL!!!! |
| bashg | Dont make fun of Auditors... they cant help being loser |
| Gleeder | This question better be on the exam! |
| sakellari | thank you guys..you made me laugh... |
| idzani | Legit lol'd |
| timkalt | Nice one! :) |
| arom346 | I've seen auditors. Loser is not a stretch. |
| mmccoy | Why isn't C correct? Need explanation. |
| Freddie33 | It is correct. Auditors are losers |