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FINANCIAL ACCOUNTING UDEL W/ACCESS >IB
8th Edition
ISBN: 9781119268444
Author: Kimmel
Publisher: WILEY C
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Question
Chapter 7, Problem 5Q
To determine
Sarbanes Oxley Act (SOX): SOX is the act passed by the government to address the corporate scandals. This act regulates and assesses the internal control system of public traded companies.
To explain: The importance of internal control to top management of company, as regulated by SOX
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Students have asked these similar questions
How can board members and senior managers actually monitor and control ethical behavior in a company?
Corporate governance is defined as "the set of laws, rules, and procedures that influence the company's operations and the decisions its managers make." Agency costs are "the reductions in a company's value due to actions by agents (managers), including the costs principals (shareholders) incur (such as monitoring costs) trying to modify their agents' behaviors." Corporate governance provisions are set in place as way to help minimize the agency conflict within a firm. Not one provision alone completely eliminates the potential for all agency conflict. As a result, multiple governance provisions are typically in place at a firm to help minimize the risk.
The book lists 5 common internal governance provisions:
monitoring and discipline (threat to fire) by the board of directors
charter provisions and bylaws that affect the likelihood of hostile takeovers (remember that in general: shareholders like hostile takeovers, managers do not)
compensation plans
capital structure choices…
Which of the following is not a factor that influences a business's control environment?
a.organizational structure
b.personnel policies
c.proofs and security measures
d.management's philosophy and operating style
Chapter 7 Solutions
FINANCIAL ACCOUNTING UDEL W/ACCESS >IB
Ch. 7 - A local hank reported that it lost 150,000 as the...Ch. 7 - Prob. 2QCh. 7 - Prob. 3QCh. 7 - Prob. 4QCh. 7 - Prob. 5QCh. 7 - Prob. 6QCh. 7 - Prob. 7QCh. 7 - Prob. 8QCh. 7 - Prob. 9QCh. 7 - Prob. 10Q
Ch. 7 - Prob. 11QCh. 7 - Prob. 12QCh. 7 - Prob. 13QCh. 7 - Prob. 14QCh. 7 - Prob. 15QCh. 7 - Prob. 16QCh. 7 - Prob. 17QCh. 7 - Prob. 18QCh. 7 - Prob. 19QCh. 7 - Prob. 20QCh. 7 - Prob. 21QCh. 7 - Prob. 22QCh. 7 - Prob. 23QCh. 7 - Prob. 24QCh. 7 - Prob. 25QCh. 7 - Prob. 26QCh. 7 - Prob. 27QCh. 7 - Prob. 28QCh. 7 - Match each situation with the fraud triangle...Ch. 7 - Prob. 7.2BECh. 7 - Prob. 7.3BECh. 7 - Prob. 7.4BECh. 7 - While examining cash receipts information, the...Ch. 7 - Prob. 7.6BECh. 7 - Luke Rove is uncertain about the control features...Ch. 7 - Prob. 7.8BECh. 7 - Prob. 7.9BECh. 7 - Prob. 7.10BECh. 7 - Prob. 7.11BECh. 7 - Prob. 7.12BECh. 7 - Prob. 7.13BECh. 7 - Prob. 7.14BECh. 7 - Prob. 7.1DIECh. 7 - Prob. 7.2DIECh. 7 - Prob. 7.3DIECh. 7 - Prob. 7.4ADIECh. 7 - Prob. 7.4BDIECh. 7 - Prob. 7.1ECh. 7 - Prob. 7.2ECh. 7 - Prob. 7.3ECh. 7 - Prob. 7.4ECh. 7 - Prob. 7.5ECh. 7 - Prob. 7.6ECh. 7 - Prob. 7.7ECh. 7 - Prob. 7.8ECh. 7 - Prob. 7.9ECh. 7 - Prob. 7.10ECh. 7 - Prob. 7.11ECh. 7 - Prob. 7.12ECh. 7 - Prob. 7.13ECh. 7 - Prob. 7.14ECh. 7 - Prob. 7.15ECh. 7 - Prob. 7.16ECh. 7 - Prob. 7.1APCh. 7 - Prob. 7.2APCh. 7 - Prob. 7.3APCh. 7 - Prob. 7.4APCh. 7 - Prob. 7.5APCh. 7 - Prob. 7.6APCh. 7 - Prob. 7.7APCh. 7 - Prob. 7.8APCh. 7 - Prob. 7CCCPCh. 7 - Prob. 7.1EYCTCh. 7 - Prob. 7.2EYCTCh. 7 - Prob. 7.3EYCTCh. 7 - Prob. 7.4EYCTCh. 7 - Prob. 7.5EYCTCh. 7 - Prob. 7.6EYCTCh. 7 - Prob. 7.7EYCTCh. 7 - Prob. 7.8EYCTCh. 7 - Prob. 7.9EYCTCh. 7 - Prob. 7.10EYCTCh. 7 - Prob. 7.1IFRSCh. 7 - Prob. 7.2IFRS
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Similar questions
- "Controlling is very important for increasing the performance of employees in an organization." How can a manger execute the process of controlling for achieving the organizational goods?arrow_forwardExplain how business ethics relate to internal control.arrow_forwardDiscuss the agency costs in the Agency Theory in corporate governance and solutions applied thereto.arrow_forward
- What term is used to describe broadly to the manner in which an organization is governed or managed and it encompasses the framework of rules, relationships, systems, and processes designed to exercise authority and control within a company? A. Management controlB. Corporate governanceC. Internal auditingD. Government regulationarrow_forwardDefine agency problems, and describe how they give rise to agency costs. Explain how a firm’s corporate governance structure can help avoid agency problems.arrow_forwardDiscuss the agency theory, the stewardship theory, and the stakeholder theory in corporate governance.arrow_forward
- Can you give me interview questions about internal control of a company?arrow_forward5. What is the relationship between the internal control system and risk management with corporate governance? How can internal control system enhance a company’s corporate governance?arrow_forwardHow corporate governance and value based management relate to each other?arrow_forward
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