kaal:position:2026-07-31-7864
Exploring Local Government Auditor Management Letter Practices: Linking Transparency and Accountability presents the following source proposition: An agency theoretical perspective would suggest that the reduction of information asymmetry through disclosures by the agent (the government) to the public (the principal) leads to accountability, that is, governments performing in the best interests of the citizenry. This proposition is pertinent to Kaal's source-bound claim that Because of bounded rationality, incomplete foresight, and information asymmetries, it is impossible for principals to contract for every possible action or inaction of the agent so as to induce the agent to act in the principal's best interests. The proposed response is an extension: the relationship should remain limited to the retrieved source proposition and the mapped Kaal claim unless fuller source review supports a broader conclusion.
risk-and-incentivesdisclosurehistorical-responsescholarly-literaturecrossref