Question 3 (a) Why is it important to distinguish firms' efficient contracting and opportunistic accounting policy choices for accounting regulation? (3 marks) (b) If a bonus plan contract is used to reward a firm's manager (i.e., a contract that specifies a bonus is payable to the manager only if the firm's reported earnings are between stipulated lower and upper bounds), explain how the manager can be opportunistic with regard to the choices of the firm's accounting policies if the firm's current reporting earnings is above the upper bound. (2 marks)