Explain implications of evolving role of external auditing

Assignment Help Corporate Finance
Reference no: EM131459419

Assignment: Control and Regulatory Compliance

Requirements and responsibilities of financial executives with respect to internal control and regulatory compliance are the focus of study this week. An important outcome is learning how to define and implement an effective system of corporate governance and how it should work to improve accountability to shareholders and the quality of financial and operational reporting and disclosure. This involves the ability to articulate the most important principles of corporate governance.

The course of study examines and explains the role and fiduciary duties of a company's board of directors in the oversight of corporate operations and affairs. An important expected outcome is the ability to discuss the most important attributes and characteristics of an effective board of directors and to explain how its performance should be evaluated. Students are also expected to be able to articulate and evaluate the most important principles of corporate governance.

Another important expected learning outcome is the ability to explain and discuss management's responsibilities to comply with the spirit and requirements of rules, regulations, and laws, including legal, regulatory, tax and accounting rules, sustainability, and social responsibility.

Students are expected to understand the SEC reporting requirements and explain the required content of the annual Form 10K report.

The ability to discuss and explain the implications of the evolving role of external auditing and corporate governance, financial reporting, and disclosure are expected outcomes from this week's studies.

Students will become familiar with important regulatory legislation and should be able to discuss the principal provisions of the Dodd-Frank Act of 2010 and its impact on companies and investors. They should also be able to discuss the principal provisions of the Sarbanes-Oxley Act of 2002 and its impact on companies and investors.

Observation:

For a review of the costs and benefits of Sarbanes-Oxley refer to the article (Hanna, J. The Costs and Benefits of Sarbanes-Oxley. Forbes. March 10, 2014.) that can be retrieved from:

https://www.forbes.com/sites/hbsworkingknowledge/2014/03/10/the-costs-and-benefits-of-sarbanes-oxley/

Suggested Readings:

UMUC eReserves:

McKenna, Francine. Ten Years After Sarbox, Time for an Audit of the Auditors. Financial Times. July 29, 2012.

Online Readings:

Zameeruddin, Rizvana, The Sarbanes-Oxley Act of 2002: An Overview, Analysis, and Caveats. Available at https://www.westga.edu/~bquest/2003/auditlaw.htm

Hanna, Julia. The Costs and Benefits of Sarbanes-Oxley. Forbes. March 10, 2014. Available at:https://www.forbes.com/sites/hbsworkingknowledge/2014/03/10/the-costs-and-benefits-of-sarbanes-oxley/

Cohen, Daniel, Dey, Aiyesha, and Lys, Thomas. (Sarbanes-Oxley) Beneficial or Detrimental Legislation: The Pros and Cons of Sarbanes-Oxley. Available at:https://insight.kellogg.northwestern.edu/index.php/Kellogg/article/beneficial_or_detrimental_legislation

GE Capital. Adapting to Regulatory Change: How Companies Should Approach New Rules and Laws. 2012. Available at:
https://www.gecapital.com/en/pdf/Adapting_to_Regulatory_Change.pdf

Skeet, Ann. Trends in Corporate Governance. July 1, 2015. Available at:
https://www.scu.edu/ethics/focus-areas/business-ethics/resources/trends-in-corporate-governance/

Adams, R., Hermalin, B. E., and Weisbach, M. S. The Role of Boards of Directors in Corporate Governance. NBER. (November 2008). Available at:

https://www.nber.org/papers/w14486.pdf

Reference no: EM131459419

Questions Cloud

Which alternative is likely to have more risk : Do you think that either the acquisition of foreign firm or licensing will result in greater growth for an MNC? Which alternative is likely to have more risk?
How is customer satisfaction measured : How is customer satisfaction measured? Marketers monitor customer satisfaction through various marketing research methods.
Future value for various compounding periods : Find the amount to which $400 will grow under each of these conditions: 12% compounded semiannually for 4 years. 12% compounded monthly for 4 years.
Describe two ways marketers keep customers : Describe two ways marketers keep customers. Through frequency marketing-frequent-buyer or -user marketing programs that reward customers with cash.
Explain implications of evolving role of external auditing : explain the implications of the evolving role of external auditing and corporate governance, financial reporting, and disclosure are expected outcomes.
Define customer relationship management : Define customer relationship management. Customer relationship management is the combination of strategies and technologies that empowers relationship programs.
Statements about bond pricing : Which of the following statements about bond pricing is correct?
What is the value of the investment three years from today : what is the value of the investment 3 years from today (immediately after the cash flow at "year 3" occurs)?
Develop the transfer functions of 3 key system components : Determine the Inputs and Outputs of 3 Key System Components - Develop the Transfer Functions of 3 Key System Components - Develop the Closed-Loop Control System

Reviews

Write a Review

Corporate Finance Questions & Answers

  Impact of the global economic crisis on business environment

This paper reviews the article of ‘the impact of the global economic crisis on the business environment' that is written by Roman & Sargu (2011).

  Explain the short and the long-run effects on real output

Explain the short and the long-run effects on real output, price, and unemployment

  Examine the requirements for measuring assets

Examine the needs for measuring assets at fair value in accounting standards

  Financial analysis report driven by rigorous ratio analysis

Financial analysis report driven by rigorous ratio analysis

  Calculate the value of the merged company

Calculate the value of the merged company, the gains (losses) to each group of shareholders, NPV of the deal under different payment methods. Synergy remains the same regardless of payment method.

  Stock market project

Select five companies for the purpose of tracking the stock market, preparing research on the companies, and preparing company reports.

  Write paper on financial analysis and business analysis

Write paper on financial analysis and business analysis

  Intermediate finance

Presence of the taxes increase or decrease the value of the firm

  Average price-earnings ratio

What is the value per share of the company's stock

  Determine the financial consequences

Show by calculation the net present value for the three alternatives (no education, network design certification, mba). Also, according to NPV suggest which alternative you advise your friend to choose

  Prepare a spread sheet model

Prepare a spread sheet model for the client that determines NPV/IRR with and without tax.

  Principles and tools for financial decision-making

Principles and tools for financial decision-making. Analyse the concept of corporate capital structure and compute cost of capital.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd