1. Define Agency theory. 2. Risk in investment can be eliminated by improved accounting and auditing procedures? - True b- False 3- Accounting regulation prevents fraud. a- True b- False 4. Only firms that perform well have incentives to report their operating results. a. True b- False 5. Which of the following concepts provides a framework for analysing financial reporting incentives between managers and owners? 2- Signalling theory b- Agency theory C- Information symmetry 6. What is signalling theory