The Roles Of Mckesson And Robbins

The audit committee’s role in financial reporting is to ensure that accurate and transparent disclosure is being presented to the public, investors, and shareholders. The role of top management in financial reporting is to make sure that the financial statements and disclosures are in accordance to GAAP, and that everything disclosed is truthful, while not hurting the business. The

There are a number of people that are critical to the corporate process. These include the directors of corporations, officers, and shareholders. The primary role of the directors is that of oversight (Loewenstein, 1998). The directors are hired by the shareholders, and their duty is to oversee the actions of the corporate executive. The directors hire the CEO and set his/her salary and benefits. The directors also play a role in oversight of the strategy and operations - this tells them about the merits of the executive that they have hired. Since Sarbanes-Oxley (SOX) was enacted, directors have seen their oversight role expanded (Skinner, 2006). There must be within the director group some financial experience to provide explicit financial oversight of the firm. The law prescribes certain committees as well, including audit and compensation committees, and SOX has also increased the liability that director's face, while expanding the role that directors play in the firm.

This paper analyzes a fictional privately held company, Smackey Dog Foods, Inc. as well as its fictional auditor, Keller CPAs. The analysis is based on a Keller Graduate School of Management scenario and a series of questions developed to address concepts learned throughout the External Auditing course. Concepts include: SEC influence, audit planning, audit stages, internal controls, confirmations, sample size, obtaining evidence, inventory, warehousing cycles, Professional Rules of Conduct, and auditor’s legal liability. Each of these auditing concepts are explained and then applied to the scenario between Smackey Dog Foods, Inc. and Keller CPAs.

An important decision for any shareholder is deciding whether or not to do business with that company. When a business is audited, the operations are reviewed to make sure that nothing is being hidden. An auditor will review the company’s financial statement and practices to confirm that each are direct and correct. The financial statements are the business’s way of representing them and showing that they are following the Generally Accepted Accounting Principles. The audit process is an important one because it provides a platform for the auditor’s opinion concerning the financial statements of the company. As part of the audit process the auditor will conduct an audit plan that outlines a number of actions that he or she will be perform while also detailing the reason for those actions. With every audit, the business’s management is in charge of handing over the financial statements that the auditor will review; while the auditor will review the statements for any material or immaterial misstatements.

The act endorses companies to change the practice and regulations of accounting and auditing. It required them to maintain good financial recorded which were different than the past. The management team is held personally liable for the reliability and accuracy of the financial statements. All publically listed companies must establish a system of internal controls which must be evaluated by management at least quarterly and external auditors are required to conduct independent assessments of company’s in –house internal controls as well as report any fault or fraudulent acts they observe.

The importance of audit committees increased through the years and especially from pre-Sarbanes – Oxley to post-Sarbanes – Oxley. Although, what are the responsibilities of the audit committee members? How does a Chief Audit Executive (CAE) more effectively serve their audit committee members? How do auditors communicate with audit committees? What are the requirements for audit committees? Most of these questions are inherited from what the audit committee’s best practices are.

The Audit Committee assists the Board in regard to financial reporting, audit and risk management, including:

I had reviewed companies must have corporate governance committee combined entirely of independent directors together. In addition to, identifying individuals qualified to become board members, develops and recommends to the board has arranged of corporate governance principles and applied to the company as following;

Audit Committee: The Audit Committees’ role in checks and balances is to further assist the Board in providing oversight of the integrity of the financial statements, the effectiveness of the internal controls that relate to financial reporting, and the organizations compliance with legal and regulatory requirements.

The company should hire it’s own internal auditor’s to ensure that the staff understand the company’s accounting procedures. This also helps the external auditor as it give the external auditor another viewpoint when assessing fraud risks. The internal auditors are apart of those charged with governance and that helps take the pressure off of the external auditor if a fraud should be discovered.

The audit committee is responsible for the following. It is responsible for reviewing the financial statements, for reviewing the company's compliance and control systems, for monitoring the effectiveness of the internal audit function, assessing the independence and objectivity of the external auditors, and ensuring the employees have the opportunity to raise concerns about matters of financial reporting. The audit committee supports the Board. Ultimately, because the audit committee is comprised of members of the Board, they are elected by the shareholders. Should the shareholders decide, they can replace these members at the annual meetings.

Does the Board or audit committee understands and exercises oversight responsibility over financial reporting and internal control?

The Audit Committee ensures the following corporate practices to evaluate and manage the company’s risks efficiently: meetings, review of periodic reports, quarterly review of CEO and CFO Certification Process, review of Earnings Releases and Information Provided to Analysts and Rating Agencies, approval of audit and non-audit services, hiring guidelines for the independent auditor employees, conflict of interest review, etc. (GE, 2008, p. 8). The nature of the risks determines the risk mitigating strategy and practice, for instance – “delegation of authorities, standardized processes, and strategic planning reviews operating reviews, insurance, and hedging (GE, 2017, p.

INTRODUCTION There has been considerable interest in recent years in the role of the audit committee as a key corporate governance mechanism. Corporate governance committees and regulators around the world have addressed the need for effective audit committees, with many requiring that listed companies must have a committee (European Union (EU) 8th Company Law Directive, 2006; Smith Report, 2003; United States (US) Congress, 2002). Recognising that the existence of a committee does not guarantee that the committee will be effective, attention has moved to the composition and activities of audit committees. Recommendations have focused on the independence and expertise of committee members and the frequency of committee

The internal auditor have a several roles in the company which is the first one the audit committee need to discharge and restrict the governance responsibilities and the