ACC 211 Chapter Notes -Financial Statement, Stock Market, Income Statement
Document Summary
Procedures to ensure that the company is managed in the interest of the shareholders. Aimed at ensuring the integrity in the financial reporting process. Good corporate governance eases the company"s access to capital, lowering both the coats of borrowing (interest rates) and the perceived riskiness of the company"s stock. Sets auditing standards for independent auditors (cpas) of public companies. Cfo highest officer associated with the financial and accounting side of the business. Composed of nonmagement (independent) directors with financial knowledge, is responsible for ensuring that processes are in place for maintaining the integrity of the company"s: This opinion, which adds credibility to the statements, is also often required by agreements with lenders and private investors. Subjecting the company"s statements to independent verification reduces the risk that the company"s financial condition is misrepresented in the statements. As a result, rational investors and lenders should lower the rate of return (interest) they charge for providing capital.