Accounting Information Systems: The Processes and Controls, 2nd Edition

SUMMARY OF STUDY OBJECTIVES

An overview of corporate governance. Corporate governance is the body of policies and procedures in place to make sure that all of the corporation's employees and leaders are held accountable for their actions on the job. Its purpose is to ensure the efficient use of the company's resources so as to protect the economic wealth of the shareholders and the overall health of the corporation. An effective system of corporate governance depends on the tone at the top.

Participants in the corporate governance process. Many stakeholders are important to the corporate governance process. Internal stakeholders consist of shareholders, the board of directors and its audit committee, and all of the company's layers of personnel, including managers, supervisors, staff members, and internal auditors. External stakeholders consist of external auditors, regulators, investors, creditors, customers, suppliers, and the overall business community in which the company operates.

The functions within the corporate governance process. There are four primary functions of the corporate governance process: management oversight, internal controls and compliance, financial stewardship, and ethical conduct. Management oversight involves the various positions of internal and external stakeholders monitoring the responsibilities of others under their direction. Internal control and compliance involve safeguarding corporate assets and establishing accurate financial reports in an ...