Response

Please respond (at least 100 words) to the following scenario by 11:59 p.m.

 Per Chapter 4 in your textbook: “One way to limit agency costs is to separate the decision rights to initiate and implement decision (decision management) from the ratifying and monitoring functions (decision control).  Accounting systems play a very important role in monitoring as part of the performance evaluation system.”   How can accountants and accounting systems limit agency costs and increase management accountability to shareholders? (HINT:  need to define agency costs.)   Part 1: Not your opinion.  What does the literature and your textbook say on this subject?   Please include citation for any source you use.  Please use APA format.