BU127 Chapter Notes - Chapter 6: Audit, Press Release, Income Statement
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BU127 Full Course Notes
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Document Summary
Corporate governance: refers to the procedures designed to ensure that the company is managed in the interests of the shareholders. Good corporate governance can ease a company"s access to capital, lowering both the cost of borrowing (interest rates) and the perceived riskiness of investment in its shares. The board of directors: elected by the shareholders to represent their interests, is responsible for maintaining the integrity of the company"s financial reports. The audit committee of the board, which must be composed of non-management (independent) directors with financial literacy, is responsible for hiring the company"s independent auditors. They also meet separately with the auditors to discuss management"s compliance with their financial reporting responsibilities. An unqualified (clean) audit opinion: is the auditors" declaration that the financial statements are fair presentations in all material respects in conformity with ifrs. By signing an unqualified audit opinion, the audit frim assumes part of the financial responsibility for the fairness of the financial statements and related presentations.
