All options information and correct answer please Why should we be skeptical about the ratings that rating agencies produce? Identify 3 the three accurate responses:Barriers to entry prevent new rating agencies with better models from gaining market power, thus insulating existing agencies from having to compete on the accuracyof their ratings.To give a low rating to a security, the rating agent must get approval from the agency's board of directors.Rating agencies have other (non-rating-related) business with the same companies they rate.Rating agencies are paid by the companies they rate and compete with each other for business.

Rating agencies, also known as credit rating agencies, are firms that assess the creditworthiness of…

Answered: Why should we be skeptical about the…

Contemporary Auditing

11th Edition

ISBN:9781337650380

Author:KNAPP

Publisher:KNAPP

Chapter1: Comprehensive Cases

Section1.3: Just For Feet, Inc.

Problem 3Q

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Proponents of the EMH think technical analysts A) should focus on relative strength. B) should focus on resistance levels. C) should focus on support levels. D) should focus on financial statements. E) are wasting their time. Please provide an accurate justification for the chosen answer.
for each question below, write a short answer Summarise the key criticisms that are made to the DCF model and as an analyst, how do you think you could circumvent some of these problems? Think about a firm’s valuation process and take a step back. Do you believe it is more about models accuracy or negotiation and instinct? Think about further issues with the DCF model and Discuss them.
Why does scope creep create risk in independence? Select all that apply It can create an unfair advantage in the marketplace. It can decrease costs. It can lead to unintentionally providing a prohibited service to a restricted entity. It can cause non-compliance with KPMG policies on independence.
Give one reason why performing advisory services could enhance audit quality. Give one reason why performing advisory services could weaken audit quality. Do you think performing advisory services for audit clients should be restricted? Why or why not?
Which is not an organization's response to risks? *a. An organization may accept the risk if it is prepared to absorb or mitigate the impact of the risk.b. An organization may take the risk but tries to lower the impact and possibility of occurrence of the risk.c. An organization may take the risk but not the returns that come with it.d. An organization may opt not to take the risk by avoiding the activity with associated risk.
Explain the problems of adverse selection and moral hazard caused by asymmetricinformation. How can financial intermediaries alleviate those problems?
2. Explain how research supports the contention that the analytical work and recommendations of analysts do influence the market. 3. MiFID II is a significant regulatory change impacting the buy-side and sell- side. Describe the key changes emerging from the regulation of relevance to analysts (buy-side and sell-side) and comment on whether you think it will improve the quality of research in the market. 3 C 2. Explain how research supports the contention that the analytical work and recommendations of analysts do influence the market. 3. MiFID II is a significant regulatory change impacting the buy-side and sell- side. Describe the key changes emerging from the regulation of relevance to analysts (buy-side and sell-side) and comment on whether you think it will improve the quality of research in the market.
Identify 2 weaknesses. Why are they weaknesses and what risk they expose the company to? What is the recommendation to correct the weakness?
the financial statements must contain appropriate information for it to be useful to the users. Which term best describes this statement: A. Relevant, B, Material, C, Complete, D, Neutral Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Select the best answer for each of the follwing items and give reasons for your choice. a. Which of the following best describes the relationship between assurance services and attest services? (1) While attest services involved financial data, assurance services involve nonfinancial data (2) While attest services require objectivity, assurance services do not require objectivity (3) All attest services require independence. (4) Attest and assurance services are different terms referring to the same types of services
Identify 2 weaknesses (being sure that your response identifies why they are weaknesses - what risk they expose the company to) and a recommendation to correct the weakness.
If the security market is efficient in the weak form, then it is impossible to consistently outperform the market by using technical analysis, which tries to find security mispricing by analyzing historical security price data it is impossible to consistently outperform the market by using fundamental analysis, which tries to find security mispricing by analyzing non-price public information it is impossible to consistently outperform the market by using inside information it is impossible to consistently outperform the market by using technical analysis, fundamental analysis or inside information

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