Below ais the summary of the SEC listing requirements for the audit committee responsibilities of companies listed on the stock excha
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- Below is a summary of the SEC corporate governance requirements of companies publicly-listed in the stock exchange. For each requirement, state how it is intended to help to address the risk of fraud in publicly traded organizations. a. Boards need to consist of at least independent directors or 1/3 of the board which is higher.Below is a summary of the SEC corporate governance requirements of companies publicly-listed in the stock exchange. For each requirement, state how it is intended to help to address the risk of fraud in publicly traded organizations. a. The corporate governance committee must have a written charter that addresses the committee's purpose and responsibilities, and there must be annual performance evaluation of the committee. b. Boards must have an audit committee with a minimum of three independent members. c. The audit committee must have a written charter that addresses the committee's purpose and responsibilities, and the committee must produce an audit committee report; there must also be an annual performance evaluation of the committee.Which of the following audit procedures would be most relevant when examiningthe completeness transaction-related audit objective for capital stock?(1) The auditor examines minutes of the board of directors’ meetings to identifyany actions involving the issuance of capital stock.(2) The auditor vouches entries in the client’s capital stock records to board minutes.(3) Confirmations of new stock issuances are sent to the client’s stock transfer agent.(4) The auditor traces entries of new stock issuances to the cash receipts journal.
- NYSE corporate governance requirements of companies listed on this stock exchange,, state how it is intended to help to address the risk of fraud in publicly traded organizations. 1. Boards must have an audit committee with a minimum of three independent members. 2.The audit committee must have a written charter that addresses the committee’s purpose and responsibilities, and the committee must produce an audit committee report; there must also be an annual performance evaluation of the committee.Following is a summary of the NYSE corporate governance requirements of companies listed on this stock exchange. For each requirement, state how it is intended to help to address the risk of fraud in publicly traded organizations. Boards need to consist of a majority of independent directors. Boards need to hold regular executive sessions of independent directors without management present. Boards must have a nominating/corporate governance committee composed entirely of independent directors. The nominating/corporate governance committee must have a written charter that addresses the committee’s purpose and responsibilities, and there must be an annual performance evaluation of the committee.Which of the following is not true of a registration statement? A . It helps the SEC make judgments about the worth of securities. B. It contains financial statements certified by independent public accountants. C. It provides information about the management of the company. D. It is different for different types of companies that offer securities for sale.
- Following is a summary of the NYSE corporate governancerequirements of companies listed on this stock exchange.For each requirement, state how it is intended to help to addressthe risk of fraud in publicly traded organizations.a. Boards need to consist of a majority of independent directors.b. Boards need to hold regular executive sessions of independentdirectors without management present.c. Boards must have a nominating/corporate governance committeecomposed entirely of independent directors.d. The nominating/corporate governance committee must have awritten charter that addresses the committee’s purpose andresponsibilities, and there must be an annual performanceevaluation of the committee.e. Boards must have a compensation committee composedentirely of independent directors.f. The compensation committee must have a written charterthat addresses the committee’s purpose and responsibilities,which must include (at a minimum) the responsibility toreview and approve corporate goals…(Sections 302 and 906) How do the officer certification requirements help to address the risk of fraud in publicly traded organizations? What is the likelihood that a CFO who is committing fraudulent financial reporting would sign the certification falsely, and what are your reactions to that possibility?1. The London, Tokyo and New York Stock Exchanges, Ghana, among others, require an annual audit of the financial statements of companies whose securities are listed on it. What are the possible reasons for this? 2. Distinguish between absolute and reasonable assurance. Identify the type of assurance that is expected in an audit of the financial statements, clearly outlining the reasons to justify your point of view.
- For each requirement, state how it is intended to help to address the risk of fraud in publicly traded organizations. a. Boards must have an audit committee with a minimum of three independent directors. b. The audit committee must have a written charter that addresses the committee's purpose and responsibilities, and the committee must produce an audit committee report; there must also be an annual performance evaluation of the committee.The following audit procedures are commonly performed by auditors in the verification of owners’ equity: 1.Review articles of incorporation and bylaws for provisions about owners’ equity. 2.Analyze all owners’ equity accounts for the year and document the nature of any recorded change in each account. 3.Confirm capital stock transactions with the stock registrar and transfer agent. 4.Confirm shares issued and outstanding with the stock registrar and transfer agent. 5.Review the minutes of the board of directors’ meetings for the year for approvals related to owners’ equity. 6.Recompute earnings per share. 7.Review debt provisions and senior securities with respect to liquidation preferences, dividends in arrears, and restrictions on the payment of dividends or the issue of stock. Required State the purpose of each of these seven audit procedures. List the type of misstatements the auditors can uncover by the use of each audit procedure.An auditor working with a publicly traded client learns that the client has been completing stock trades based on insider information. How should the auditor report any violations of the law?