ACCT-240 Chapter Notes - Chapter 5: Public Company Accounting Oversight Board, Financial Accounting Standards Board, Defamation

• School: American University
• Department: Accounting And Taxation
• Course: ACCT-240
• Professor: Darlene Suprenant

Document Summary

Chapter 5 - communicating and interpreting accounting information. Procedures designed to ensure the company is managed in the interests of shareholders. Lowers costs of borrowing and the perceived riskiness of the stock. Protects investors and maintain integrity of securities markets. Reviews reports filed with it for compliance with its standards. Sets auditing standards for cpas (certified public accountants) Sets overall corporate governance standards along with state governments. Regulators (standard setting) > stock exchange (corporate governance. Chief executive officer and chief financial officer are responsible for. Each report filed with the sec contains only truthful statements and doesn"t omit fact and fairly presents the financial condition, results of operations and cash flows. There are no significant deficiencies in the internal controls over financial reporting. They have disclose to auditors and audit committee any weaknesses or any fraud involving relevant people related to financial reporting. Executives who knowingly certify false information pay 5 million and a 20-year prison term.