ACC 3202 Lecture Notes - Lecture 5: Sarbanes–Oxley Act, Fiduciary, Financial Statement
5 Mar 2017
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Corporate governance: system of checks and balances whereby a company"s leadership is held accountable for. Encourage efficient use of resources and accountability. Balance interests of individuals, corporations (board of directors)and communities(everybody living in community) Whether decision is going to have negative impacts. People sitting @ top will increase shareholders value. Tone at top: set of value and behaviors in place for corp leaders. Stakeholders; are all of the different people who have some form of involvement or interest in business. Must get communicated so that people working at the bottom knows what expected of them. Goal of governance is to ensure financial information is accurate , transparent, and reports require a process. Financial stewardship: fiduciary responsibility: entrusted with power to manage the assets of company which belong to shareholders ex) parents give you spending limit. Need to have discipline: don"t go overboard with spending. Ethical conduct: most valued and most important. Business world shifted from materiality to earnings pressures.
