Change is always good for some participants and bad for others. Which types of financial institutions appear best situated to gain or lose from regulatory changes aimed at enhancing competition within the financial services industry?

Change is always good for some participants and bad for others. Which types of financial institutions appear best situated to gain or lose from regulatory changes aimed at enhancing competition within the financial services industry?

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter16: Advanced Topics Concerning Complex Auditing Judgments

Section: Chapter Questions

Problem 59RSCQ

See similar textbooks

Related questions

Q: How does the Sarbanes–Oxley Act contribute to accurate and quality financial reporting by public…

A: Sarbanes Oxley Act: Sarbanes Oxley Act is a federal law established auditing and financial…

Q: Explain the difference between conservative and aggressive accounting practices.

Q: What is the Machiavellian approach to decision making?

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Greater role assumed by government in bailing out financial intermediaries – too big to fail…

A: Financial intermediary is referred as the institution or an individual, which act as a middleman…

Q: What has been the main thrust of recent changes in the financial reporting rules following the…

A: Correct answer is To improve internal control over companies' financial reporting.

Q: Economic consequences of accounting standard-setting means:a. standard-setters must give fi rst…

A: Financial reporting:

Q: The IASB sets standards for: a. The private sector b. The public and private sectors c.The public,…

A: IASB:- International Accounting Standard Board is an independent private sector body that prepares…

Q: Regulatory reviews include an assessment of capital, asset, quality, management, earnings,…

A: Your answer: According to the regulatory evaluation criteria of capital, capital adequacy,…

Q: There can be no proper corporate accountability without sound financial reporting” Critically…

A: Meaning of corporate accountability- There is an old adage that role of business is to do…

Q: Using any of the defunct banks as a case study, justify how this definition is in line or deviates…

A: Corporate governance provides the structure through which the objectives of the company are set and…

Q: Which of the following is true of financial institutions? A. Financial institutions are the…

A: A financial institution (FI) is a business that deals with financial and monetary transactions like…

Q: Critically evaluate the influence of activism by institutional investors on corporate governance.

A: Institutional investor refers to the company that invests money in shares and financial assets on…

Q: Which of the following best describes the process of removing or reducing of governmental controls…

A: The government imposes control on the financial industry in order to ensure fair practices in the…

Q: nature of corporate governance damages the financial stability c

A: Option "b" is wrong because compliance of corporate governance with formal laws will result in…

Q: Explain two ways in which organizations might utilize their corporate transparency strategy to…

A: Corporate transparency refers to describing the organization's actions to the outsiders via the…

Q: Market failures can be attributed to the inability of the both the public and private sectors to do…

A: In the given question we need to tell that whether the given statement is true or false. Statement:-…

Q: The whole essence of financial institutions is the prevention of institutional failures? Explain

A: Financial institutions are those companies engaged in activities that result in collection and…

Q: hat is the authoorative status of the Conceptual Framework? a. to provide the foundation for…

A: Answer: Concept: Conceptual framework deals with financial reporting.

Q: One party in Congress seems to believe that financial institutions are too highly regulated, and…

A: The regulations which are formed to regulate the activities of banks, investment firms and other…

Q: Governments require some banks to conduct stress tests of their financial situation. What type of…

A: The government is very influential in all aspects of the financial world. Government regulations and…

Q: Since risks, such as credit, liquidity, default, technological, and legal risks, among others, may…

A: Market behavior: Market behavior is a broad economic phrase that encompasses consumer, company, and…

Q: The expectations gap is:a. what financial information management provides and what users want.b.…

A: Expectation gap: The difference between public expectation and what the auditors provides. As per…

Q: External decision makers would not look primarily to financial accounting information to assist them…

A: answer

Q: Discuss weaknesses in the public sector accounting and finance in the usage of resources that might…

A: Accounting in the public sector is a distinct specialty with its own set of qualifications. The…

Q: The central bank intervened heavily in the credit crisis. Explain whether you believe the central…

A: Central Bank: As the financial institution with exclusive power over the generation and circulation…

Q: What informal remedies are available to firmsin financial distress? In answering this…

A: An informal restructuring is typically the "lowest drastic" option for a financially troubled…

Q: Some accountants have said that politicization in the development and acceptance ofgenerally…

A: (a) Accounting Research Bulletins: American Institute of Certified Public Accountants (AICPA) is a…

Q: The SEC is trying to get companies to notify the investment community more quickly when a "material…

A: “Material changes” are the one that impacts the share price of the company directly in a drastic…

Q: ce firms are regulated primarily at the federal level and which at the state level? Can you see…

A: Step 1 International governments have several existing institutions that regulate and regulate…

Q: What are some of the current challenges facing financial regulators?

A: Financial institutions have undergone many changes in the past decades or so mainly due to…

Q: Which of the following is more likely to occur when an entity has effective internal controls?…

A: Internal control means the mechanisms, rules, procedures etc. which are implemented by a company to…

Q: One goal of the regulatory reforms that followed the 2007-2009 financial crisis was to address the…

A: The too big to problem was a problem associated with regulatory institutions who did not allow the…

Q: Which one of the following is not among the conditions that will qualify a situation, particular…

A: Accountable Event: The events that can be measurable in monetary terms in order to record them in…

Q: The recent collapse of some banks and financial institutions and the merger of others in ghana is…

Q: Which function of a financial intermediary reduces transaction and information costs between a…

A: Financial intermediaries help to make deals for their clients. Due to their professional skill set…

Q: Since risks, such as credit, liquidity, default, technological, and legal risks, among others, may…

A: The consistency principle argues that when an accounting principle or technique is adopted, it must…

Q: ir financial statement presentations

A: Earlier, financial reports were made physically, but with automation, the time has changed. Now…

Q: 1. How would you suggest the standard-setter or the regulator mitigate the potensial decrease in…

A: Here asked about the standard setter or the regulator mitigate the potential in the decrease in the…

Q: In finance, the term risk management involves identifying the potential risks the organization may…

A: The practice of identifying, evaluating, and implementing investment decisions depending on…

Question

100%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Legal, Regulatory and Professional Obligations of Auditors

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

The "Discipline of the Market" means that in a competitive market customers and investors deal with firms that behave well, and leave those that do not. They avoid too much risk and flock to firms that pay the best. Then the good actors succeed, and the bad actors go out of business naturally. If the Discipline of the Market apply to financial services, then why do we need regulation and why do we need government restrictions where the free market should apply?
Regulatory reviews include an assessment of capital, asset, quality, management, earnings, liquidity, and sensitivity to financial market conditions. Many types of strategies can result in more favourable regulatory reviews based on some criteria, but lessfavourable reviews based on other criteria. The financial institution is planning to issue more stocks, retain more of its earnings, increase its holdings of Treasury securities, and reduce its business loans in the commercial bank operations. It has historically been rated favourably by regulators, but the financial institution believes that these strategies will result in an even more favourable regulatory assessment. Which regulatory criteria will be affected by the financial institution’s strategies? How?
Which of the following is a reason for financial regulation? a. To ensure market dominance by strong financial institutions. b. The failure of any financial institution may have a serious negative impact on individuals and economies. c. Banks cannot be trusted. d. To ensure government control of the economy.
One party in Congress seems to believe that financial institutions are too highly regulated, and need to be freed to be able to compete on the world markets more efficiently. The other party seems to believe that financial institutions need to be regulated even more than they are. In any event, financial services are some of the most highly regulated industries in the country. Are financial services too highly regulated? Or not regulated enough?
Economic consequences of accounting standard-setting means: a. standard-setters must give first priority to ensuring that companies do not suffer any adverse effect as a result of a new standard. b. standard-setters must ensure that no new costs are incurred when a new standard is issued. c. the objective of financial reporting should be politically motivated to ensure acceptance by the general public. d. accounting standards can have detrimental impacts on the wealth levels of the providers of financial information.
Which of the following is not a guiding principle of financial regulation? Question 3Answer a. Innovation should be discouraged to ensure that financial products and services offered conform to the set rules and regulations. b. Strict monitoring should be set up to ensure that international standards are met. c. Prudence and effectiveness should be applied when using financial resources of a country. d. Regulatory measures on the senior management of the financial institutions so as to ensure that decisions taken are in the best interest to the financial market.
Economic consequences of accounting standard-setting means:a. standard-setters must give fi rst priority to ensuring that companies do not suffer any adverseeffect as a result of a new standard.b. standard-setters must ensure that no new costs are incurred when a new standard is issued.c. the objective of financial reporting should be politically motivated to ensure acceptance by thegeneral public.d. accounting standards can have detrimental impacts on the wealth levels of the providers of financialinformation.
In your opinion, what is the effect of the banking sector clean up on investment decisions of individuals/firms.
Governments require some banks to conduct stress tests of their financial situation. What type of financial regulation is this requirement? A. Disclosure requirements B. Assessment of risk management C. Restrictions on competition D. Consumer protection
What is the Machiavellian approach to decision making? What are some ethical considerations in the reporting of financial results? How do different ethical perspectives potentially impact accounting-based decisions? What is the role of government regulations in producing ethical financial reports?
Which of the following is true of financial institutions? A. Financial institutions are the regulators of interest rates and other returns in financial markets. B. Financial institutions are accountable and responsible in reporting financial information for publicly-traded corporations. C. Financial institutions are required by the Sarbanes-Oxley Act to disclose the environment-friendly measures taken by investment corporations.
The impact of COVID-19 on the efficiency of financial institutions? can you provide recommendations and limitations for the above reseach question