One of the critical components of financial statements is the audit report. While audited financial statements are not perfect they should be “good enough” that the informed investor, having read the financial statements, has enough data to make knowledgeable decisions based on the firm’s history and its management’s handling of finances.
Accounting / Finance / Investing
Rapid technological development in AI has led to speculation of a catastrophic demise of the auditing profession. The primary weakness in this use of AI for auditing is that machines initially learn from flawed systems: humans.
To support startups and new ventures in the digital space, ICOs and STOs have the potential to streamline, decentralize, and disintermediate the capital raising process, creating advantages for both entrepreneurs and investors.
A frequent question from potential investors is, “How much of your own money have you invested?” A question that kills many an entrepreneur who does not understand how to answer it.
The 12-step approach may not comprise a full financial analysis of an organization, but this approach does enable the NFM to gain quick insights into the financial performance of an organization.
Living in a complex world and moving into the smart machine age, the need for good leadership is even greater; spiritual leadership provides a compass to navigate through difficult decisions.
A review of the interaction of finance and religion shows not only has there been a long historical relationship between them, but religion continues to influence financial decision-making.
In this article, the authors report findings on changes in Fannie Mae and Freddie Mac’s mortgage loan quality by analyzing over 15 million loans from 2001-2015.
Practitioners of all sized companies are reassessing their expectations that the Federal Reserve can effectively stimulate growth and planning accordingly.
This article reviews the primary roles of venture capitalists and relays key management advice from Silicon Valley VCs normally reserved for their portfolio firms.
When does earnings management become earnings manipulation, and when does earnings manipulation become outright misrepresentation? This is an important question.
Companies operating in managed exchange rate environments may be able to use a similar proxy to establish suitable prices and to profit from currency speculation.
This study investigates how holding and transaction costs can affect the cost calculus of commission-free ETFs and provides a recommendation on how to minimize costs.
Empirical observations, laboratory experiments, and game theory offer guidance for a prudent person doing repeat business with potentially untrustworthy partners.
After the crisis in Cyprus, even smaller depositors lost money in Cyprus banks. This raises a troubling question: will bank bail-ins—by depositors, creditors and bondholders—become the norm in other countries as well?