#auditors fail to detect material weaknesses in clients' #internalcontrols over #financialreporting (#icfr) when clients experience financially material negative #esg incidents, which eventually lead clients to restate their financial statements. The results suggest that auditors overweight their clients' attempts at improving their internal controls following the revelation of material ESG incidents.
“... we provide evidence that setting the risk-weighted ratio at 15\% and the simple leverage ratio at 10% would significantly decrease the probability of default without hampering banks' activities.”
The study investigated how ChatGPT and Bard categorize investor risk profiles compared to financial advisors. While there were no significant differences in the risk scores assigned by the chatbots an
The paper suggests that companies developing high-risk AI systems should demonstrate their safety before deployment, arguing for proactive risk management. It proposes a risk management approach where