ACC 211 Lecture Notes - Lecture 5: Financial Accounting Standards Board, Financial Statement, Edgar

• School: University of Miami
• Department: Accounting Business Administration
• Course: ACC 211
• Professor: Levine Seth

Document Summary

Corporate governance: procedures to ensure that the company is managed in the interests of the shareholders. Sarbanes-oxley act: a law that strengthens financial reporting and corporate governance for public companies. Opportunity: opportunity for someone to steal/commit fraud, some internal weakness. If you give someone a financial incentive to mess up the numbers or steal, that might start to happen because they want the reward. Rationalization: they rationalize their de(cid:272)isio(cid:374) (cid:271)y (cid:862)(cid:271)orrowi(cid:374)g(cid:863) (cid:373)o(cid:374)ey or (cid:373)aki(cid:374)g a reaso(cid:374) for it. Sets auditing standards for independent auditors (cpas) of public companies. Does(cid:374)"t work full ti(cid:373)e for (cid:272)o(cid:373)pa(cid:374)y; (cid:374)ot always i(cid:374) Elected by stockholders to represent interests of stockholders. Follow established standards to assess fairness of financial statements and related presentations (ex: someone increasing assets or hiding expenses) An unqualified (no problems), or clean, audit opinion states that the financial statements are fair presentations in all material respects in conformity with gaap. Protects investors and maintains integrity of securities markets.