O'Reilly logo

The Board of Directors and Audit Committee Guide to Fiduciary Responsibilities by Ronald Kral, Sheila Moran

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

CHAPTER FIVE

Scrutinize the Financial Statements

SO MUCH GOES ON within an organization at the operational level that it can be difficult to grasp its business reality just by reading board packets and listening to briefings from management. In this chapter, we focus on the common types of financial misstatements as well as on suggested governance protocols, discussing how directors can familiarize themselves with idiosyncratic back-office operations, including techniques to identify complex transactions that are more form than substance.

Types of Financial Misstatements

Headline-grabbing accounting scandals like Enron, which eroded shareholder value from $90 a share in August 2000 to less than a dollar in November 2001, illustrate the damaging ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required