"The Board has adopted Corporate Governance Policies to ensure that the Board has the necessary authority and processes in place to review and evaluate our business operations as needed and to make decisions that are independent of our management. These policies include practices the Board follows with respect to its composition and selection, regular evaluations of the Board and its committees, Board meetings and involvement of senior management, senior management performance evaluation, and Board committees and compensation" Is a member of senior management present at all full Board and Board Committee meetings? Group of answer choices   a) Yes   b) It depends   c) No

As the controller of a medium-sized financial services company, you take pride in the accounting and internal control systems you have developed for the company. You and your staff have kept up with changes in the accounting industry and been diligent in updating the systems to meet new accounting standards. Your outside auditor, which has been reviewing the company’s books for 15 years, routinely complimented you on your thorough procedures. The passage of the Sarbanes-Oxley Act, with its emphasis on testing internal control systems, initiated several changes. You have studied the law and made adjustments to ensure you comply with the regulations, even though it has created additional work. Your auditors, however, have chosen to interpret SOX very aggressively—too much so, in your opinion. The auditors have recommended that you make costly improvements to your systems and also enlarged the scope of the audit process, raising their fees. When you question the partner in charge, he…

Which of the following legal forms of business, (sole proprietorship, partnership, corporation), would be favored and why? Be sure to provide a short explanation. Example: (a) “Organizational requirements and costsis an advantage of the sole proprietorship. The business is formed simply by beginning to do business. Partnerships and corporations require a more formal organizational process since a number of owners are involved.”   A. Organizational requirements and costs (done for you above) B. Liability of the owners C. The continuity of the business D. The transferability of ownership  E. Management control & regulations F. The ability to raise capital G. Income taxes.

While the corporate Governance guidelines and the agency theory require that the roles of chairman and the CEO’s to be separated, stewardship theory advocates that the double edged sword serves better. Discuss citing the advantages and disadvantages of each, in reference to the audit quality of an organization.