BOARD OF DIRECTORS & AUDIT COM

Erscheinungsjahr 2013
ISBN: 978-0-8144-3166-5
Verlag: HARPERCOLLINS LEADERSHIP

Buch, Englisch, 224 Seiten, Format (B × H): 62 mm x 93 mm

More than three million people serve on boards and audit committees in the U.S. alone. But huge risks come with these coveted jobs. SEC scrutiny is at an all-time high, with boards and audit committees now held liable to for acts of fraud and other corporate malfeasance—even if they had no knowledge of wrong-doing in the organization.This essential guide mitigates the risks and dramatically increases the effectiveness of boards and audit committees by uncovering 10 crucial steps every governing body should take, including: • Cultivate independence • Build a balanced team • Leverage independent advisors • Address stakeholder concerns • Direct the external audit • Approach risk proactively • Spearhead fraud deterrence initiatives • Promote accountability • And more Comprehensive and practical, this book simplifies complex corporate governance standards, and helps readers satisfy the requirements of board service while protecting themselves and the organization.

Autoren/Hrsg.

Moran, Sheila

Kral, Ronald

Fachgebiete

• Wirtschaftswissenschaften Betriebswirtschaft Bereichsspezifisches Management Kostenmanagement, Budgetierung

Inhaltsverzeichnis

Contents Introduction 1 CHAPTER ONE:Nominate Independent Directors 6 Nominating Committee Perspective 6 Candidate Perspective 15 CHAPTER TWO:Establish a Culture of Action 18 Expectations of Audit Committees 18 Essential Audit Committee Proficiencies 22 CHAPTER THREE:Evaluate the Audit Committee 28 Why Should Evaluations Be Considered? 28 Who Is Best Positioned to Conduct the Evaluation? 30 When Should Evaluations Be Performed? 31 What Should Be Evaluated? 32 How Should the Evaluation Be Performed? 34 CHAPTER FOUR:Direct the External Audit 36 The External Audit Process 37 Potential Roles of the Auditor 45 Hiring, Evaluating, and Replacing the External Auditor 47 CHAPTER FIVE:Scrutinize the Financial Statements 53 Types of Financial Misstatements 53 Governance Protocols 61 CHAPTER SIX:Leverage Internal Audit and Outside Resources 87 The Internal Audit Mandate 87 Internal Audit Oversight 89 Internal Audit Administration 97 Signs of an Ineffective Internal Audit Function 100 CHAPTER SEVEN:Satisfy Regulators and Other Stakeholders 104 Regulators 105 Other Stakeholders 121 CHAPTER EIGHT:Address Risk Proactively 124 Risk-Management Frameworks 125 Risk Identification 126 Risk-Ranking Tools 128 Risk Response 132 Reporting Risk 137 Risk-Assessment Follow-Up 142 CHAPTER NINE:Spearhead Fraud-Deterrence Initiatives 148 Types of Fraud 149 Fraud-Deterrence Tools 163 CHAPTER TEN:Expect the Unexpected 186 The Need for Crisis-Management and Crisis-Media Plans 186 Board-Level Fraud Response 191 The Need for CFO and CAE Succession Plans 201 Conclusion 205 Forty Key Action Items 205 Notes 213 Index 223

Über Autor(innen)

Sheila Moran CPA, CFE is CFO at Professional Power Products and serves on the faculty of the Association of Certified Fraud Examiners. Ronald Kral CPA, CMA, CGMA is managing partner at public accounting firm, Candela Solutions LLC.