should financial analysts be held liable for their opinions regarding the financial health of firms?

Solutions

Expert Solution

As we know that the analyze believes on the data that are available to the general public and do their calculations based on the data provided they give their judgments by taking the help of experts, other professionals, etc. Also the audit report is prepared by the auditor that represents the actual financial position of the company. Based on the data available with respect to the company the auditor report gives the qualified report or unqulaified report. Also the company hide that information i.e. unfair from the analyst, and the auditor

Hence, the given statement be false.

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

Should companies be held strictly liable for their products?

Which of the following statements is true regarding Subchapter S firms? a)These firms are liable to...

Which of the following statements is true regarding Subchapter S firms? a)These firms are liable to pay federal income taxes. b)These firms cannot have more than 100 shareholders. c) These firms need to pass-through at least half of their earnings to their shareholders. d) Income from these firms is tax-exempt for its shareholders. e) All of the options are true for Subchapter S firms.

Should online dating sites be held liable if relationships initiated through contact on such sites ends...

Should online dating sites be held liable if relationships initiated through contact on such sites ends in putting one party in danger or harming a party physically? Ethically, do you believe online dating and matchmaking services should run background checks on their clients? How should we define pornography without inhibiting freedom of expression? How do we enforce such a definition without enforcing censorship?

Under the doctrine of ______________, a partner in a partnership can be sued and held liable...

Under the doctrine of ______________, a partner in a partnership can be sued and held liable for conduct which he did participate in, ratify, or know about: a. vicarious liability b. joint and several liability c. strict liability d. agency

There are many types of ratios that financial analysts use to estimate the health of a...

There are many types of ratios that financial analysts use to estimate the health of a company. One important type focuses on measuring how well a company is actually performing. These are known as "profitability" or "performance" ratios. We can get a sense of whether or not a company is being efficient in its use of assets. It looks at questions such as: Does the company generate a reasonable amount of sales for the assets held? Are its profits reasonable...

What would be the key to determining if the accounting firm could be held liable for...

What would be the key to determining if the accounting firm could be held liable for that violation of federal law

Explain, in your own words, why a principal is held liable for the actions of an...

Explain, in your own words, why a principal is held liable for the actions of an agent. Your answer should address: Who is harmed if the principal is not liable. Identify two consequences to contract negotiations if the principal is not liable.

Should Analysts be Separated from Securities Firms to Ensure No Conflicts of Interest? Please elaborate

product safety for engineers Why can a manufacturer be held liable if an injury is due...

product safety for engineers Why can a manufacturer be held liable if an injury is due to person’s use of the manufacturer’s product in a way which was not intended?

1- Why are minors held liable on a quasi contract basis for the reasonable value of...

1- Why are minors held liable on a quasi contract basis for the reasonable value of necessaries furnished to them? 2- Explain the test for mental incapacity in contract law. 3- Discuss the need for "real consent" as it relates to the creation and enforcement of a contract. 4- Discuss whether silence can constitute fraud. 5- Distinguish between illegal wagering contracts and legal risk-shifting and speculative bargaining agreements. 6- What is an exculpatory clause?

Subjects