4 Specifically independent board members include those that are not employees

4 specifically independent board members include

  • Notes
  • Soundwave
  • 56
  • 67% (73) 49 out of 73 people found this document helpful

This preview shows page 56 out of 56 pages.

4 Specifically, independent board members include those that are not employees of the company and do not receive consulting or other compensatory fees from the company (other than fees for serving on the board of directors and the audit committee). In addition, all members of the audit committee must be financially literate, while one member must be considered a “financial expert.” 5 The sponsoring organizations included the American Institute of Certified Public Accountants, the American Accounting Association, the Financial Executives Institute, The Institute of Internal Auditors, and the Institute of Management Accountants. 6 The bankruptcy of Lehman Brothers Holding, Inc., in 2008 is now the largest bankruptcy in U.S. history. 7 Ironically, the conviction of Andersen was overturned by the Supreme Court, but not before the firm had been dissolved. 8 The AICPA and the PCAOB often use the terms issuer and nonissuer to refer to public and nonpublic companies, respectively. An issuer is a company that has securities registered with the SEC. We will use the terms public/issuer and nonpublic/nonissuer synonymously throughout this textbook. 9 The GAO changed its name from the General Accounting Office to the Government Accountability Office in 2004.
Image of page 56

You've reached the end of your free preview.

Want to read all 56 pages?

  • Fall '13
  • cpas

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes