BUSI 4008 Lecture Notes - Lecture 9: External Auditor, Management Control System, Financial Statement

• School: Carleton University
• Department: Business
• Course: BUSI 4008
• Professor: Shannon Butler

Document Summary

Corporate governance processes that help ensure that companies are directed and managed to create value for their owners while at the same time, fulfilling responsibilities to other stakeholders. Corporate governance systems and mcs are inseparable. Goal: to improve transparency, timeliness, and quality of financial reporting. Section 404 of sox: good internal controls is a legal requirement. Section 404, mandates an evaluation and a formal written opinion of the effectiveness of a firm"s internal controls by both: management & the firm"s external auditor. Managers and auditors are required to examine a broad range of internal controls over financial reporting, including: policies and procedures, audit committee effectiveness, whistleblower programs (cid:862)tone at the top(cid:863) Sox act has directly affected companies mcss in a positive way it has improved: companies" internal control structure, audit committees" confidence in the company"s internal controls, companies" ability to prevent and detect fraud.