Question

1. There are reasons why accountants, according to the Code of Conduct, must be both independent in fact and appearance. Why do you think this is? 2. Assume you had some excess funds sitting at home. You were thinking of investing in a company. What factors would you consider in order to make an informed decision about whether to invest or not in this company? 3. What if the auditors who audited a major corporation concluded that their financial statements were not prepared in conformity with GAAP? You could not then........(fill in the blank)..

Answer 1

1). Independence in both fact and appearance is also crucial to maintaining professional autonomy and the high esteem in which the profession is held. As a result, no violation of existing independence rules is too trivial to be glossed over

2).

Mentioned below are a few factors that can help you find the right type of investment.

Risk tolerance
According to experts, there is a direct correlation between the risk associated with an investment and the returns it provides. Generally, the higher the risk, the higher is the potential return. However, different investors have different risk taking ability, according to their financial condition and preferences. It is essential to assess the level of risk you can take before selecting any instruments for investment. Once you know your risk taking ability, you can choose from a variety of options available for that risk type. For instance, high-risk investments include equity investments, while moderate and low-risk instruments include fixed-income investment options like fixed deposits.

Age
One of the most important factors to consider while investing is your age. When it comes to investing, being young is an advantage. This is because you have more disposable income, not many responsibilities, higher risk-taking ability, and can wait for a longer period for an investment to bear fruits. As you grow older, you will have to take into account different factors like responsibilities, retirement planning, etc. In addition, you will have lesser time for your investments to provide returns. Hence, your ideal investment instruments change according to your age.

Investment objective
Before you put money in any instrument, it is essential to determine your investment objective. If your goal is simply keeping your money safe, you can choose investment options like fixed deposits or bonds that may provide moderate returns. However, if you are looking for higher profits and do not mind taking some risk, you can invest in shares or mutual funds.

3). you could not then ensure a minimum level of consistency in a company's financial statements, which makes it easier for investors to analyze and extract useful information..