QUESTION 1 ANSWER ALL PARTS OF THIS QUESTION a) In the context of financial reporting, explain what is meant by agency theory'. Include in your answer clear identifications of the agency relationships considered, the mean- ing of the main terminology used in expounding the theory and the implications for financial reporting of the theory. (13 marks] b) In the context of financial reporting, explain 'signalling theory'. As part of your answer, explain how signalling relates to Akerlof's 'market for lemons' (QUE, 1970). [6 marks) c) What evidence, if any, exists to suggest that the IASB has been subject to 'regulatory capture? [6 marks] TOTAL 25 MARKS