Prudential regulation is generally seen to deal with:a.Systematic risks in the financial sector.b.The inherent risks of the profit seeking motive of a Financial Institution.c.Prudential breaches by the Financial Institution.d.The systemic risks that a Financial Institution can pose if its failure can easily lead to the failure of other financial institutions.

Prudential risks are those that can reduce the adequacy of a firm's financial resources, and as a…

Answered: Prudential regulation is generally seen…

Prudential regulation is generally seen to deal with: a. Systematic risks in the financial sector. b. The inherent risks of the profit seeking motive of a Financial Institution. c.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter3: Internal Control Over Financial Reporting: Responsibilities Of Management And The External Auditor

Section: Chapter Questions

Problem 2CYBK

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Question

Prudential regulation is generally seen to deal with:

Systematic risks in the financial sector.

The inherent risks of the profit seeking motive of a Financial Institution.

Prudential breaches by the Financial Institution.

The systemic risks that a Financial Institution can pose if its failure can easily lead to the failure of other financial institutions.

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