Wednesday, May 15, 2019
Financial analysis Essay Example | Topics and Well Written Essays - 6750 words
Financial analysis - Essay casefulIn case of all kind of misrepresentation found in the financial statements, they shall be hard liable for not fulfilling their duties and the responsible individual managers ar likely to penalize for not being unquestionable in dealings with the external parties.The parties such as banks and financial institutions that are interest to provide capital to the firm and other individuals interested to invest in the firm or often require deuce-ace parties to attest the financial statements served by the firm for reliance in the information provided.External audit firms, investment bankers and underwriting firms, provide these certification services. Various clients are served by these third parties and thus they are strongly interested in maintaining their reputation and credibility with the financial community.The report provided by these third parties serves as reasonable presumption in the true and fair disclosure of information in the financ ial statements. In case of any(prenominal) discrepancy found in the financial information provided by the firm, the reports on the financial statements shall not be clean. Thus adversely affects the credibility of the firm.In case of any frau (d) Legal Penalties In case of any fraudulent or misrepresentation of information found in the financial statements served by the firm, there are heavy penalties for the persons responsible for the fraud which may lead to even insolvency of the firm.Most juridical laws across the bollock have severe civil and criminal liabilities for misrepresentation of financial information. Solution (b)Costs Associated with disclosureThe unhomogeneous costs associated with the disclosure of financial statements can be classified as underCollection and process costsLitigation CostsPolitical costsCompetitive disadvantages
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment