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9 Cards in this Set
- Front
- Back
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A process by which the owners and creditors of an organization exert control and require accountability for the resources entrusted to the organization. The owners (shareholders) elect a board of directors to provide oversight of the organization's activities.
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Corporate Governance
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Who is involved in corporate governance and their roles?
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Stockholders
Board of Directors Audit committees of the Board Management AICPA Regulatory Agencies External Auditors Internal Auditors Pg. 35 |
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What have been some of the breakdowns in corporate governance?
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-Management dominated Board of Directors.
-Management would manipulate earnings to meet analyst expectations. -Audit Committees did not have expertise or time to provide effective oversight of audit functions. |
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What were some of the major changes/requirements made in the Sarbanes-Oxley act?
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1. Establishment of PCAOB
2. CEO & CFO certify financials 3. Internal Controls Report required 4. Management certify correctness of financials 5. Audit committees became client 6. Rotation of partners every 5 years 7. "Cooling off" period for partner or manager can take position with client |
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What are the three categories of generally accepted auditing standards?
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1. General Standards
2. Fieldwork Standards 3. Reporting Standards |
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What are the ten GAAS?
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1. Technical Training and Proficiency
2. Independence 3. Due Professional Care 4. Planning and Supervision 5. Understanding the Entity and internal controls 6. Obtaining Audit Evidences 7. Presentation in accordance with GAAP 8. Consistency 9. Disclosures 10. Opinion |
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What are the General Standards within GAAS?
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1. Technical Training and Proficiency
2. Independence 3. Due Professional Care |
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What are the Fieldwork Standards within GAAS?
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1. Planning and Supervision
2. Understand entity and its Internal Controls 3. Obtaining Audit Evidences |
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What are the Reporting Standards within GAAS?
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1. Presentation in accordance with GAAP
2. Consistency 3. Disclosures 4. Opinion |
