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Essential Concepts of Chapter 11 _Regulatory Reporting and by yurtgc548

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									Director’s Roles in Certification for Public
               Companies
                                    Consultation, Review and
                      Auditor       Communication

    Audit
   Report
                     Board of
              $      Directors
                                       Fidelity
                  Oversight

 Management                               Stockholders
                         Audited
                        Financial
                       Statements
      Audit Committee Requirements

• NYSE/NASD - 3 financially literate, and independent
  AC members
• SEC -
   – audit committee charter
   – disclose independence of AC, auditor
   – AC discuss preferability of AccPrin used w/ auditor
   – AC approve financial statements
   – timely reviews of quarterly fin. stmts. by auditor
• ASB - auditor discuss with AC uncorrected
  misstatements (certified as immaterial by management)
Typical Auditor Communication Links for
         U.S. Public Companies
        Stockholders
         Direct   responsibility
       Board of Directors
             Chair
         Inside Directors
 *                                    Direct
        Outside Directors                                 External Auditor
        (Audit Committee)          Communication


 *   Chief Executive Officer

         Other Officers
                                                                       Audit
       Corporate Assets,                                              activities
     Obligations, Personnel,
     Processes, Contracts,
          and Activities


      Financial Statement
          Assertions
                                       * Same person sometimes fills both roles.
         Case 9.a - Time Line


               8-K   ?
Event or
 condition               WSJ/NYT ?

                                 Annual report




             12 months of stock prices

								
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