Use the Internet to research at least two (2) companies that have experienced downgrades related to stock performance

Use the Internet to research at least two (2) companies that have experienced downgrades related to stock performance

Use the Internet to research at least two (2) companies that have experienced downgrades related to stock performance or bond ratings within the last five (5) years and analyze the primary ways in which auditors would use the information from downgrades to assess business risk or evaluate the likelihood that the downgrades would impact the auditor’s assessment of the client’s business environment. Ascertain the major ways in which this information would impact the audit risk model equation. Support your position.

According to an article in the CPA Journal, the auditor considers reliability of audit evidence collected and the reliability of that evidence to reduce the risk of financial statements containing undetected material errors. Compare and contrast at least two (2) types of evidence, and make a recommendation as to which you believe is the most reliable in reducing risk. Support your position.

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Sony Corporation and Atlantic Power Corporation have both experienced downgrade in reference to the company’s stock performance as well as bond ratings. Sony Mobile business profitability margin has decreased substantially and the company’s earnings have drastically dropped. Further, Sony has a large number of bonds………………..

APA
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