SMG SM 131 Lecture Notes - Lecture 3: Management Accounting, Investment Banking, Sarbanes–Oxley Act

• School: Boston University
• Department: School of Management
• Course: SMG SM 131
• Professor: Matthew Reis

Document Summary

Use of resources: what is it that managers need to do - internal perspectives, done by cfo/controller, corporate accounting, make investments. Accounting info is a primary input to these decisions: manage costs. Direct materials - directly involved in creating the product. Balance sheet shows what the company has at a speci c point in time. Income statement measures pro tability over a period of time. Statement of cash ows measures liquidity over a period of time. Internal controls - board of directors, information systems, internal auditors. External controls - auditors (the big 4), exchanges (nyse, nasdaq), regulators (sec), institutional investors (fidelity, jp morgan: auditors produce the audit report. Chapter 17, understanding accounting and financial information, pp. Auditing: auditing involves reviewing and evaluating information used to prepare a company"s. Nancial statements: auditors can earn professional accreditation as a certi ed internal auditor (cia, external auditors review samples of documents of a company and make judgements based on gaap.