BU127 Chapter Notes - Chapter 6: Financial Audit, Faithful Representation, Financial Statement
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BU127 Full Course Notes
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Document Summary
Corporate governance refers to procedures designed to ensure that the company is managed in the interests of the shareholders. The board of directors elected by the shareholders is responsible for ensuring that processes are in place for maintaining the integrity of the company"s accounting records. An unqualified audit opinion indicates that the financial statements are presented in accordance with gaap. Institutional investors include private pension funds (associated with unions and employees of specific companies), public pension funds (for provincial and municipal employees), mutual funds, endowment, charitable foundation and trust funds. Private investors include individuals who purchase shares in companies, for example, individuals making large investments, as well as small retail investors who buy a relatively small number of shares of publicly traded companies through brokers. Lenders, or creditors, include suppliers, banks, commercial credit companies, and other financial institutions that lend money to companies.