Since risks, such as credit, liquidity, default, technological, and legal risks, among others, may affect the financial operations of the business or organizations. Laws are created to enfore financial regulations. In financial markets, these laws, rules and regulations control the following drivers: competitiveness, market behavior, consistency and stability. Consistency. The reason why in the field of accountancy consistency is an important principle because it enables development of reasonable decision. Consistency plays a key attribute to ensure that the other drivers affecting the results were isolated for better analysis and at the same time reducing the risk inherent in the results. QUESTION: Explain further what "consistency" means. How do laws control consistency in financial markets? Explain. Then identify the risks that arise from it.
Since risks, such as credit, liquidity, default, technological, and legal risks, among others, may affect the financial operations of the business or organizations. Laws are created to enfore financial regulations. In financial markets, these laws, rules and regulations control the following drivers: competitiveness, market behavior, consistency and stability.
Consistency. The reason why in the field of accountancy consistency is an important principle because it enables development of reasonable decision. Consistency plays a key attribute to ensure that the other drivers affecting the results were isolated for better analysis and at the same time reducing the risk inherent in the results.
QUESTION:
Explain further what "consistency" means. How do laws control consistency in financial markets? Explain. Then identify the risks that arise from it.
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