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- What is the purpose of an audit? A) To provide investment advice to shareholders B) To ensure that financial statements are accurate and comply with accounting standards C) To manage and control a company's financial resources D) To predict a company's future financial performanceHow are financial accountants pressured when they need to make ethical decisions in their work? Is having technical mastery of GAAP enough to practise financial accounting?In your opinion, what is the most important statement in the financial statements that a financial analyst will use as the reference in assessing the company’s assets and liabilities? Justify your opinion with reason/s.
- How.do changes in accounting standards, such as the transition from GAAP to IFRS, impact financial reporting practices and decision-making processes within multinational corporations, considering the potential effects on comparability, transparency, and the overall quality of financial information?"In the realm of financial accounting, how do accounting policies, changes in accounting estimates, and errors influence the accuracy and reliability of a company's financial statements? Illustrate each concept with a practical scenario and detail the necessary adjustments or disclosures that might be required to ensure transparent and accurate financial reporting.Mention and explain the major line items on a bank’s income statement. What can the numbers on an income statement imply in terms of a bank’s risk management decisions?
- As a corporate financial manager, what steps could you take to protect your company from a liquidity crisis?Suppose you are the chief financial officer (CFO) responsible for the financial statements of Philip Morris. What ethical issue would you face as you consider what to report in your company’s annual report about the cash payments? What is the ethical course of action for you to take in this situation? Who are the stakeholder of this company?A friend asks you about whether GAAP requires companies to disclose forecasts of financial variables to external users. She thinks that information could be very useful to investors.Required:1. What are the two primary qualitative characteristics of accounting information?2. Does GAAP routinely require companies to disclose forecasts of financial variables to external users? Indicate yes or no and explain how your answer relates to the qualitative characteristics of accounting information.
- Explain briefly what are the different types of operational risks affecting the banking institutions? Explain the Operational Risk Management (ORM) process and critically evaluate how ORM process would support to improve the operational risk management process of a bank?Which of the following should a bank do if they wish to engage in both security rating and investment banking? Group of answer choices a. Restrict prepublication of analyst reports to research personnel only b. Base compensation for analysts on positive ratings of securities c. Place analysts in the supervisory organization under sales personnel d. All of the aboveDiscuss the role of finance in business. What is the purpose of financial management? Describe the kinds of activities that financial management involves. What kind of tools do financial managers leverage to access and/or monitor the health and performance of a business?