BUSA 690 Lecture Notes - Sarbanes–Oxley Act, Enron Scandal, External Auditor

• School: McGill University
• Department: Business Admin
• Course: BUSA 690
• Professor: Peter Younkin

Document Summary

The practice of the ceo also being the chair of the board is known as duality. While this practice is common in the u. s. , it is relatively rare elsewhere. In the u. k. , successive codes of best practice have recommended against duality. External corporate governance controls encompass the controls external stakeholders exercise over the organization. Demand for and assessment of performance information (especially financial statements) The board of directors has primary responsibility for the corporation"s external financial reporting functions. The chief executive officer and chief financial officer are crucial participants and boards usually have a high degree of reliance on them for the integrity and supply of accounting information. They oversee the internal accounting systems, and are dependent on the corporation"s accountants and internal auditors. Current accounting rules under international accounting standards and u. s. gaap allow managers some choice in determining the methods of measurement and criteria for recognition of various financial reporting elements.