Presentation Chapter 6

Presentation Chapter 6 - Roles and Responsibilities of...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
Roles and Responsibilities of Management Chapter VI
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Chapter Objectives: Introduce the managerial function of corporate governance. Understand the roles, responsibilities, and duties of corporate senior executives, including the CEO and CFO. • Identify the components of executive compensation, and illustrate how each of these components relates to effective corporate governance. • Identify the financial reporting requirements of public companies and SOX provisions that pertain to management certifications of financial reports and internal controls. • Be aware of financial reporting challenges facing public companies, including off balance sheet arrangements, aggregate contractual obligations, and critical accounting policies and practices. • Discuss management’s responsibilities for ICFR. • Provide an overview of the costs and benefits resulting from Section 404 compliance . Video ( Video)
Background image of page 2
Key Terms Chief audit executive (CAE) Chief risk officer (CRO) Corporate development officer (CDO) Enterprise risk management (ERM) Extensible Business Reporting Language (XBRL) Financial Accounting Standards Board (FASB) Institute of Internal Auditors Research Foundation International Accounting Standards Board (IASB) International Financial Reporting Standards (IFRS) Joint Committee on Taxation Other postemployment benefits (OPEB) Tax shelter
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Management Responsibilities Operating Process. The operating process entails: (1) operating activities of designing products and services, marketing and delivering products, invoicing products, and servicing customers; (2) investing activities of investing in both human and capital resources; and (3) financing activities of funding investments and expenditures through internal growth, issuing stocks, or incurring debt. Financial Reporting Process. Management should report both financial and nonfinancial KPIs that assist investors to predict the company’s future cash flows from operating, investing, and financing activities. Compliance Process. The compliance process involves compliance with all applicable rules, regulations, laws, and standards, including regulatory, legal, tax, environmental, social, and ethical standards and best practices.
Background image of page 4
Management Pre-SOX Information asymmetry between management and owners Post-SOX New certification requirements § Assessment of disclosure controls and procedures § Assessment of internal controls and procedures over financial reporting Plan to comply with accelerated filing deadlines Prepare for new disclosure requirements Incorporate audit and non-audit service pre-approval procedures Enhanced code of ethics for senior officers Increased time and attention to governance activities 5
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Corporate Officers CEO.
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/08/2012 for the course ACCT 7050 taught by Professor Razai during the Fall '11 term at U. Memphis.

Page1 / 84

Presentation Chapter 6 - Roles and Responsibilities of...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online