ACCT 001 Lecture Notes - Lecture 11: Information System, Risk Assessment, Systemic Risk
17 Sep 2020
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Document Summary
Share markets and other markets for financial capital. Work in same way as a normal market. Role of information in a capital market. The portion of the securitys variation that relates to or correlates with variation in the overall market. Security"s own residual variation not related to the market. Efficiency of information"s use means that markets respond so quickly and smoothly to information that once the information becomes publics its effects are immediately reflected in prices. Internal control increases efficiency and effectiveness of operations, reduce risk of asset loss, help ensure the reliability of financial statements and help ensure compliance with laws and regulations. A process effected by an entity board of directors, managers and other personnel designed to provide reasonable assurance regarding the achievement of objectives in the following categories. Effectiveness and efficiency of operations, including safeguarding assets against loss. Reliability of internal and external financial and non financial reporting. Covers three objectives business objectives and safeguarding of resources.
