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Key considerations before investing in ETFs

Exchange Traded Funds (ETFs) have gained global investors' interest as a new class of investment as they provide a wide variety of ETFs for investors to invest in, namely from stock exchange indices, commodities, equities, bonds, and lately, bitcoins.

ETFs offer a flexible, diversified and efficient investment option for investors. To choose the best ETFs, it is essential to consider your investment objective, past performance, liquidity, costs, investment structure, fund size and available research.

Key considerations before investing in ETFs

Exchange Traded Funds (ETFs) have gained global investors' interest as a new class of investment as they provide a wide variety of ETFs for investors to invest in, namely from stock exchange indices, commodities, equities, bonds, and lately, bitcoins.

ETFs offer a flexible, diversified and efficient investment option for investors. To choose the best ETFs, it is essential to consider your investment objective, past performance, liquidity, costs, investment structure, fund size and available research.

Appointment and resignation of auditors are routine for businesses. While familiarity fosters efficiency, it also breeds complacency. Therefore, companies are encouraged to periodically rotate their audit firms as part of sound corporate governance practice.

However, seeing external auditors resign before their term ends without prior indication is probably a telltale sign that things are not right.

There have been numerous expressions of frustration among external auditors over the years that led to their sudden resignation but the reasons behind such action were obscured by the generic justifications, claiming auditors left voluntarily.

Navigating the Evolving Sustainability Reporting Landscape: The Crucial Role of Internal Audit

The sustainability reporting landscape saw paradigm shifts and transformations in recent years, driven by the increasing demands of diverse stakeholders. These calls resonate with the urgent need for enhanced sustainability practices and more robust, comparable disclosures from listed issuers.

Meanwhile, investors and financial institutions are pressing for greater emphasis on ESG reporting for better and informed investment decision-making.

With that, organisations must acknowledge that effective ESG reporting is built upon a robust system of internal controls. Amid this, internal audits are crucial in providing objective assurance, insights, and guidance to the governing body and management on ESG-related matters.”

Warning Signs in Financial Statements

The importance of financial statements cannot be overstated. It provides a comprehensive snapshot of a company’s financial well-being and performance, unveiling both its strengths and weaknesses.

As the adage goes, the devil is in the details; financial statements harbor indicators that could adversely affect a company. Investors must exercise vigilance when these warning signs emerge in their invested companies. Critical analysis of financial statements, including multi-year data comparisons within the industry, is imperative for informed and timely decision-making.

Disclosures such as meeting minutes can provide insights into shareholder concerns and management strategies to address emerging issues. By staying proactive and informed, stakeholders can mitigate risks and safeguard their investment portfolios effectively.