Professional Documents
Culture Documents
BUSINESS ETHICS,
RISK MANAGEMENT,
AND INTERNAL
CONTROL
Aldrian Wilfred Cotingjo 3/30/22 AC1204
Governance Term
To Study
1. Governance Planning – a set of roles, responsibilities and processes that an entity would
be implemented to guide development and usage of technologies used within the
enterprise.
• Reference:
https://www.webopedia.com/definitions/governance-plan/
3. Fraud – a deception carried out for personal financial gains that would cause injury to the
other party.
• Reference:
https://financial-dictionary.thefreedictionary.com/Fraud
5. Engagement processes – refers to initial interaction between the social worker and the
client.
• Reference:
https://connect.springerpub.com/content/book/978-0-8261-3363-
2/chapter/ch04#:~:text=The%20engagement%20process%20refers%20to,soci
al%20worker%20will%20do%20together.
6. Technical Competence - are ability and knowledge required to apply specific technical
principles and information in a job function or role.
• Reference:
https://www.ccsa.ca/technical-
competencies#:~:text=Technical%20Competencies%20are%20the%20k
nowledge,example%20of%20a%20technical%20competency.
9. Integrity – honest, candid and forthright with a client’s financial information. Steadfast
adherence to a strict moral or ethical code. Restricting oneself to do actions for the
personal gains.
• Reference:
https://smallbusiness.chron.com/ethics-accounting-profession-
3738.html
https://www.thefreedictionary.com/integrity
10. Core Competence – differentiate the corporation from its competitors and create an
corporate competitive advantage in the market.
• Reference:
https://www.shrm.org/resourcesandtools/tools-and-samples/hr-
qa/pages/corecompetencies.aspx
11. Corrective problem – a problem that involves a task, process, product, or even a person’s
behavior.
• Reference:
https://www.smartsheet.com/corrective-
action#:~:text=With%20a%20corrective%20action%2C%20you,known
%20problem%20may%20also%20occur.
12. Progressive problem – progressive problems are those problems that advocates more
enlightened or liberal ideas. It favors progress, change, improvement, or reform opposing
to the current view.
• Reference:
https://www.dictionary.com/browse/progressive
13. Opportunistic problem - is defined as behavior that is self-interest seeking with guile. It is
manifested in behaviors such as stealing, cheating, dishonesty, and withholding information.
Opportunism negatively impacts relational exchange tenets such as trust, commitment,
cooperation, and satisfaction.
• Reference:
https://digital.library.unt.edu/ark:/67531/metadc3664/#:~:text=Oppo
rtunism%20is%20defined%20as%20behavior,commitment%2C%20coo
peration%2C%20and%20satisfaction.
14. Business planning - collecting ideas in a formal business plan that outlines a summary of
the business’s current state along with the detailed steps the business will take to improve
performance in the coming period.
• Reference:
https://www.thebalancesmb.com/business-planning-definition-
2947994#:~:text=Business%20planning%20commonly%20involves%20
collecting,aren't%20just%20about%20money.
15. Business process – a process wherein a series of activities and steps are being performed
by the members of the corporation to achieve a goal.
• Reference:
https://kissflow.com/workflow/bpm/business-process/
https://appian.com/bpm/business-process-definition.html
https://www.encyclopedia.com/social-sciences-and-law/economics-
business-and-labor/businesses-and-
occupations/reengineering#:~:text=DEFINITION%20OF%20REENGINE
ERING,dramatic%20improvement%20in%20business%20performance.
18. Board Balance Scorecard – clarifies how the board intends to contribute to the
corporation. It details the task to be performed as part of the board’s basic mission.
• Reference:
https://hbswk.hbs.edu/item/boards-and-corporate-governance-
a-balanced-scorecard-approach
19. Audit Committee – a members of board of directors in charge of overseeing the financial
reporting and disclosure. They are also responsible for looking misstatements and
fraudulent omission of material part of financial statements
• Reference:
https://www.investopedia.com/terms/a/audit-
committee.asp#:~:text=An%20audit%20committee%20is%20one
,listed%20on%20a%20stock%20exchange.
20. Three Tier Security Checks - a security check that is divided unto three different servers
that works independently to secure and protect one system.
• Reference:
https://en.cloudbric.com/blog/2014/12/3-tiers-and-owasp-open-web-
application-security-project/
21. Rules-based code of ethics - is based on clear-cut rules and well-defined consequences rather
than individual monitoring of personal behavior. prescribe in detail or gives a set of rules, how to
behave. The Regulator provides rules and an organization must adopt and implement control
measures to ensure compliance with the rules. Despite strict adherence to the law, some
compliance-based codes of conduct do not thus promote a climate of moral responsibility within
the company.
• Reference:
https://www.etude.co.za/article.php?article=32
https://www.investopedia.com/terms/c/code-of-ethics.asp
22. Policy on Accountability, Integrity and Vigilance – are policies adopted respective
corporation. It includes: (1) Rationale and General Policy; (2) Reporting Mandate; (3)
Reporting in Good Faith; (4) No Retaliation; (5) The Escalation Process of Raising Concerns; (6)
Confidentiality; (7) Handling of Reported Violations.
• Reference
https://www.sminvestments.com/wp-
content/uploads/2020/09/Policy-on-Accountability-Integrity-and-
Vigilance-v2.pdf
https://www.2go.com.ph/wp-content/uploads/Policy-on-
Accountability-Integrity-and-Vigilance-Whistleblowing-Policy.pdf
23. Marketing Research – The process of determining whether the new service or
product would likely be successful through research conducted with the targeted
customers.
• Reference:
https://www.investopedia.com/terms/m/market-research.asp#toc-
the-bottom-line
24. Strategic Management – The process of setting the goals and objective of the company
to enhance competitiveness. Includes strategy evaluation, internal organization analysis,
and strategy execution throughout the company in line with the organization’s vision. It is
the implementation of the strategy or known as strategy execution.
• Reference:
https://www.investopedia.com/terms/s/strategic-
management.asp#:~:text=Strategic%20management%20is%20the%20
process,resources%20to%20achieve%20these%20goals.
https://www.techtarget.com/searchcio/definition/strategic-
planning#:~:text=Strategic%20planning%20is%20a%20process,to%20r
each%20its%20stated%20vision.
25. Project feasibility Study – a study wherein it evaluates whether the project could
potentially succeed in the market.
• Reference:
https://asana.com/resources/feasibility-study
26. Appraisal of Accounting System –It is the process of conducting a fair analysis to
evaluate an asset, a business, an organization or a performance based on certain standards.
A qualified person called an appraiser does appraisal. It is done whenever properties need
to be sold and its value is determined for tax obligations for a business. Moreover, is a
result of studying of the accounting process in the public sector. The work is principally
aimed at providing an insight into the accounting system of Board of Internal revenue.
• Reference:
https://www.tutorialspoint.com/what-is-appraisal-in-accounting
https://projectng.com/topic/ac348/appraisal-accounting-system-
nigerian-public
27. Managerial Accounting – A method of accounting that creates statements, reports, and
documents that is needed in order for the management to accessing and making decision
related to the business’ performance. They are concern with identification, measurement,
analysis and interpretation of accounting information.
• Reference:
https://www.zoho.com/books/guides/management-
accounting.html#:~:text=Managerial%20accounting%2C%20also%20ca
lled%20management,primarily%20used%20for%20internal%20purpose
s.
https://corporatefinanceinstitute.com/resources/knowledge/accounti
ng/managerial-accounting/
28. Business Recovery – refers to the short-term restoration activities that return the
business to a minimum acceptable level of operation or production following a work
disruption. It includes set of policies, tools, and procedures.
• Reference:
https://www.sciencedirect.com/topics/economics-econometrics-and-
finance/business-recovery
29. Dispute Analysis and Investigation - aimed at helping lawyers and other parties to a
litigation resolve conflicts or disputes through arbitration, mediation or other venues.
• Reference:
https://www.pwc.com/ve/en/servicios/finanzas-corporativas-y-
recuperaciones/analisis-de-disputas-e-investigaciones.html
30. Forensic Accounting – utilized accounting, auditing, and investigative skills to examine
the finances of an individual or business involved in fraud and embezzlement cases to
explain the nature of the financial crime in court. It includes (1) Claim investigation and
negotiation; (2) Conflict resolution; (3) Arbitration for dispute resolution; (4) Review of
industrial property protection; (5) Breach of contract impact assessment; (6) Intellectual
property disputes; (7) Assessment of commercial practices; (8) Expert mediation and
opinions; (9) Fraud investigation.
• Reference:
https://www.investopedia.com/terms/f/forensicaccounting.asp#:~:te
xt=What%20Is%20Forensic%20Accounting%3F,of%20an%20individual
%20or%20business.&text=Forensic%20accounting%20is%20frequently
%20used,a%20financial%20crime%20in%20court.
31. Fraud Audit - is a consulting type of audit wherein auditors are tasked to find clues for
possible fraudulent employees within the corporation. It is more detailed than the normal
audit because of the intensity of the audit wherein it includes the small amount of money
that falls under immaterial threshold. Fraud audit does not give opinion on the financial
statements.
• Reference:
https://www.accountingtools.com/articles/2017/5/10/fraud-audit
32. Governance – an act of overseeing the control and directions of a particular thing.
• Reference:
https://www.merriam-webster.com/dictionary/governance
33. Corporate Governance – encompasses the process, practices and policies of the
corporation in making formal decisions and in managing the corporation
• Reference:
https://www.vistra.com/insights/importance-good-corporate-
governance
34. Code of Ethics – a guiding principle for professionals in conducting business honestly and
with integrity.
• Reference:
https://www.investopedia.com/terms/c/code-of-
ethics.asp#:~:text=A%20code%20of%20ethics%20is,business%20hone
stly%20and%20with%20integrity.&text=A%20code%20of%20ethics%2
C%20also,an%20employee%20code%20of%20conduct.
36. Risk Assessment – a process of identifying potential hazard and analyze the impact of
the occurrence of the hazard. It helps predict and prevent adverse events to avoid harm.
The five steps of risk assessments: (1) Identify the hazards, (2) Decide who could be
harm, (3) Evaluate the risk and decide on precautions, (4) Record findings, and
(5) Review the fraud assessments.
• Reference:
https://www.ready.gov/risk-
assessment#:~:text=A%20risk%20assessment%20is%20a,sensitive%20
or%20critical%20business%20processes.
37. Internal Control - rules and procedures of the corporation to ensure the integrity if
financial and accounting information. the purpose of internal control is to safeguard the
organization and its objectives through minimizing risks and protect assets, ensure
accuracy of records, promote operational efficiency, and encourage adherence to policies,
rules, regulations, and laws. Provides reasonable assurance but not absolute assurance.
• Reference:
https://www.investopedia.com/terms/i/internalcontrols.asp
https://www.mtu.edu/internal-audit/control/what-is/
38. Internal Audit – evaluates the corporation’s internal control, including the corporate
governance and accounting processes. It ensures the corporate compliance with laws and
regulations and help maintain integrity in financial reports and date collection. It also helps
the managements to identify problems and correcting lapses for operation efficiency.
• Reference:
https://www.investopedia.com/terms/i/internalaudit.asp
40. Conflict of Interest – A clash between personal interests and professional duties or
responsibilities.
• Reference:
https://www.investopedia.com/terms/c/conflict-of-interest.asp
41. Corporate Integrity – The goals and objectives of the managers and the shareholders are
undivided and complete. It also means aligning the corporate goal with honest,
transparency, and truthfulness to enhances the viability, competitiveness and its longevity.
• Reference:
https://www.criticaleye.com/inspiring/insights-
servfile.cfm?id=56#:~:text=Corporate%20integrity%20is%20about%20enh
ancing,may%20fatally%20damage%20a%20company.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1259947
42. Trust Index – is a survey that provides the perception of the employees based on the
quality of work experience.
• Reference:
http://teamhmh.com/wp-content/uploads/2017/10/Trust-Philosophy-
Doc.pdf
43. Values-based Code of Ethics - regulation outcomes and principles are set and the
controls, measures, procedures on how to achieve that outcome is left for each
organization to determine. Addresses a company's core value system. It may outline
standards of responsible conduct as they relate to the larger public good and the
environment. Value-based ethical codes may require a greater degree of self-regulation
than compliance-based codes.
• Reference:
https://www.investopedia.com/terms/c/code-of-ethics.asp
https://www.etude.co.za/article.php?article=32
46.Components of COSO – the five (5) components of COSO are risk assessment –
evaluate internal and external factors that provides assurance that the corporation are
managing risks to an acceptable tolerance, control activities – are taken to lessen the risk
at any level of the organization to assure that the control activities taken are effective and
helpful to achieve the goal and minimized unnecessary risks, information and
communication – ensures that the organization’s communication is productive, the use of
consistent language, and following the practices for sharing information with the right
stakeholders, control environment – ensuring that the organization is following the
standard practices and ethical values by setting standards, processes, and procedures,
monitoring activities – allows the management and the board of directors to identify the
early signs of trouble and assure effectiveness through ongoing monitoring and internal
audits of all internal control system.
• Reference:
https://reciprocity.com/resources/what-is-the-coso-framework/
47. SOX (Sarbanes-Oxley Act) – a law passed by the U.S Congress to protect investors from
fraudulent financial reporting by mandating strict reforms for the existing securities
regulations. Under Section 302 of the SOC Act of 2002, it mandates the senior corporate
officer to certify that the financial statements comply with the SEC disclosure a
requirement and is fairly presented – Corporate Responsibilities for Financial Reporting.
Under Section 404, requires the establishment of the internal controls and reporting
methods to ensure its adequacy – Management Assessment of Internal Control. Under
Section 802, affects the recordkeeping of the organization.
• Reference:
https://www.investopedia.com/terms/s/sarbanesoxleyact.asp
50. Internal Auditing – is an independent, objective assurance and consulting activity that
enhances organization’s operation to help accomplished its objectives by systematic,
disciplined approach to evaluate and improve the risk control and governance processes.
• Reference:
https://iia-p.org/about-iiap/about-the-profession/what-is-internal-audit/
51. Accounting Information System – a system that allows business to collect, store,
manage, process, retrieve, and report its data to be used by its people. It is basically a
tracking system for the business activity. It consists of people - the accountant,
consultants, business analysts, managers, CFO, and auditors, procedures and instructions
– methods for the system, data – data structure to store information, software - computer
programs used, information technology infrastructure – hardware used, and internal
controls – security measures it contains to protect sensitive data
• Reference:
https://www.investopedia.com/articles/professionaleducation/11/acc
ounting-information-systems.asp#toc-real-world-examples-of-
accounting-information-systems
52. Financial Rehabilitation & Insolvency Act / FRIA – is a law passed to encourage
debtors and creditors to collectively and realistically adjust and resolve competing claims
and rights. It governs and guarantees effective, efficient, fair, timely and transparent
rehabilitation or liquidation of debtors. Rehabilitation refers to the restoration of the
debtor to a condition of successful operation and solvency. There are three (3) types of
rehabilitation; Court-supervised rehabilitation, pre-negotiated rehabilitation, and Out-
of-court/Formal Restructuring. On the other hand, liquidation is the process of
converting assets into cash to pay debts.
• Reference:
https://ndvlaw.com/the-financial-rehabilitation-and-insolvency-act-
of-2010/
53. 2013 Rules of Procedures on Corporate Rehabilitation (under the 2010 FRIA)
I. Rule 1: Coverage and General Provisions
II. Rule 2Court-supervised Rehabilitation
A. Initiation of Proceedings
i. Voluntary proceedings
ii. Involuntary proceedings
B. Provisions Common to Voluntary and Involuntary Proceedings/action on Petition
and Commencement of Proceedings
C. the Rehabilitation Receiver, Management Committee, and Creditor's Committee
D. Determination of Claims
E. Use, Preservation and Disposal of Assets and Treatment of Assets and Claims After
Commencement Date
F. Avoidance Proceedings
G. Treatment of Secured Creditors
H. Administration of Proceedings
I. Termination of Proceedings
III. Rule 3: Pre-negotiated Rehabilitation
IV. Rule 4: Out-of-court or Informal Restructuring Agreement or Rehabilitation Plan
V. Rule 5: Cross-border Insolvency Proceedings
VI. Rule 6: Procedural Remedies
VII. Rule 7: Miscellaneous and Final Provisions
• Reference:
http://source.gosupra.com/docs/statute/918
54. Big “G” (Marco) Governance - is the abstraction, concept or larger purpose. It’s the
ideas, concepts and purposes which those institutions were created to serve, which, if
you’d like, you can think about also an input.
• Reference:
http://www.theartofgovernance.com/2016/06/13/dissecting-little-g-
versus-big-g-government/
55. Corporate or Little “g” Governance - represents the physical institutions, point of
interaction or in a workflow perspective the “output” of government, including laws, rules,
employees, budgets meetings and buildings. A court, which hears the case of one
community member suing another over a disagreement on property lines, is an example of
“government.”
• Reference:
http://www.theartofgovernance.com/2016/06/13/dissecting-little-g-
versus-big-g-government/
57. Management Succession – is a process or plan wherein the new internal management
are being are chosen and identified to smoothly replace the existing leaders who will be
transitioning their responsibilities because of disability, death, termination, or retirement.
The process includes assessing identifying employees who have the potential to take the
responsibility.
• Reference:
https://www.maximconsulting.com/what-management-
succession
59. Economic Cycles – is the fluctuations of the economy between the periods of growth and
recession. The factors that affect economic cycle is the gross domestic product, interest
rates, total employment, consumer spending. It allows investors and businesses when to
investment or pull out their money. There are four stages of economic cycle such as
expansion – rapid growth, low interest rates, production increases, and inflationary
pressures build, peak – growth hits its maximum rate, contraction – growth slows,
employment falls, and prices stagnate, and trough – economic low point and growth
begins to recover.
• Reference:
https://www.investopedia.com/terms/e/economic-
cycle.asp#:~:text=An%20economic%20cycle%20is%20the,stage%20of
%20the%20economic%20cycle.
60. ENRON Scandal & Bankruptcy – is a one of the biggest bankruptcy scandals in the US
that shook the accounting world. Due to competition, the company executive committee
dubious accounting practices by intentionally make over the financial statements to
present the company in positive view. They use the mark-to-market accounting technique
wherein unrealized future gains from trading contracts into current income statements.
The scandal brought to the existence of Sarbanes-Oxley Act (2002).
• Reference:
https://www.britannica.com/event/Enron-scandal/Downfall-and-
bankruptcy
61. Compliance – is a state of being in accordance with the guidelines, policies, and
regulations establish and set.
• Reference:
https://searchdatamanagement.techtarget.com/definition/compliance
62. Compliance Management System – how an institution: (1) Learns about its compliance
responsibilities; (2) Ensures that employees understand these responsibilities; (3) Ensures
that requirements are incorporated into business processes; (4) Reviews operations to
ensure responsibilities are carried out and requirements are met; (5) Takes corrective action
and updates materials as necessary. It helps manage risks associated with changing
product and service offerings; and new legislation enacted to address developments in the
marketplace.
• Reference:
https://www.fdic.gov/regulations/resources/director/presentations/cms.
pdf
63. Rigid Compliance Approach - A rigid approach usually entails little to no deviance from
the rules put in place by compliance management, and taking a tough stance when there
are violations.6 This approach to compliance is usually more applicable to large
corporations where extensive research and effort goes into formulating a policy for the
company or departments within the company to follow. It would be impractical and
inefficient for Compliance Managers to manage company policy purely on a circumstantial
basis. Where the system would fail or the company would risk crossing legal boundaries,
this type of approach to compliance may be necessary.
• Reference:
https://www.getsmarter.com/blog/career-advice/what-is-
compliance-
management/#:~:text=A%20rigid%20approach%20usually%20entails,s
tance%20when%20there%20are%20violations.
64. Assurance Providers - are such other independent, qualified provider of third party
assurance or attestation services appointed by the Issuer or the Guarantor to review the
Issuer’s or the Guarantor’s statements. A certified Public Accountant can be a assurance
provider of the financial statements of the entity.
• Reference:
https://www.lawinsider.com/dictionary/assurance-provider
https://www.investopedia.com/terms/a/assurance-services.asp
65. Business Continuity Plan – document prepared by the board to identify steps to be
taken to keep the business operation in case of emergency or significant business
disruption. It increases the confidence of the team and of the customers to the bus9iness,
and reduce recovery timescales. There are five key elements of business continuity plan –
(1) Risks and potential business impact, (2) Planning an effective response, (3) Roles and
responsibilities, (4) Communication, (5) Testing and training.
• Reference:
https://www.qmsuk.com/news/what-are-the-5-key-
components-of-a-business-continuity-plan
66. Governance According to IFAC – comprises the arrangements put in place to ensure
that the intended outcomes for stakeholders are defined and achieved.
• Reference:
https://www.ifac.org/system/files/publications/files/International-
Framework-Good-Governance-in-the-Public-Sector-IFAC-CIPFA.pdf
69. Corporate Governance defined under the Fraud Deterrence Cycle perspective
- Corporate Governance The nature of corporate governance as an entire culture that sets
and monitors behavioral expectations intended to deter the fraudster. Some of the key
reform issues include meeting increased demands and expectations of investors,
legislators, regulators, customers, employees, analysts, and consumers. It is the
organization's driving value and managing performance expectations for governance,
ethics, risk management, and compliance. The key business processes include strategy,
operation planning and risk management, performance measurements, and monitoring.
Corporate governance is setting and monitoring objectives, tones, policies, risk appetite,
accountability, and performance.
• Reference:
https://gupea.ub.gu.se/bitstream/handle/2077/35770/gupea_2077_35
770_1.pdf;jsessionid=3AFC9325E9DBAB3C84860776A93983F8?sequence
=1
70. Enterprise Risk Management (ERM) - the process of identifying and addressing
methodically the potential events that represent risks to the achievement of strategic
objectives, or to opportunities to gain competitive advantage. The fundamental elements
of ERM are the assessment of significant risks and the implementation of suitable risk
responses. Risk responses include: acceptance or tolerance of a risk; avoidance or
termination of a risk; risk transfer or sharing via insurance, a joint venture or other
arrangement; and reduction or mitigation of risk via internal control procedures or other
risk prevention activities. The benefit of ERM includes: (1) Greater awareness about the
risks facing the organization and the ability to respond effectively; (2) Enhanced confidence
about the achievement of strategic objectives; (3) Improved compliance with legal,
regulatory and reporting requirements; (4) Increased efficiency and effectiveness of
operations
• Reference:
https://www.cgma.org/resources/tools/essential-tools/enterpise-risk-
management.html
71. Recommended Competences of Internal Auditors - the following knowledge areas
and competencies as crucial in the execution of audit work:
I. Communication skills, including oral communication, report writing, and
presentation skills
II. Problem-solving skills (i.e., conceptual and analytical thinking)
III. Ability to promote the value of internal audit among key employees within the
organization
IV. Keeping abreast with regulatory changes and industry standards
V. Knowledge in auditing, internal audit standards, fraud awareness, and professional
ethical standards.
VI. Knowledge in enterprise risk management (i.e., risk analysis and control
assessment)
VII. Other competencies are organizational skills, change management skills, critical
thinking, teamwork, and conflict resolution and negotiation skills.
• Reference:
https://www.dvphilippines.com/blog/6-skills-you-need-in-starting-
an-internal-audit-career
72. The 2015 G20 OECD Principles of CG - the principles are presented in six different
chapters: I) Ensuring the basis for an effective corporate governance framework; II) The
rights and equitable treatment of shareholders and key ownership functions; III)
Institutional investors, stock markets, and other intermediaries; IV) The role of
stakeholders; V) Disclosure and transparency; and VI) The responsibilities of the board.
• Reference:
https://www.oecd.org/daf/ca/Corporate-Governance-Principles-
ENG.pdf
73. The Board of Directors - – They are elected individual who represent shareholders and
took part in corporate management and oversight policies of the corporation. Their task
includes hiring and firing senior executives, dividend policies, options policies, executive
compensation, and setting the company’s goal. In addition, they are tsk to ensure that the
management actions adhere to the corporate’s vision.
• Reference:
https://www.investopedia.com/terms/b/boardofdirectors.asp#:~:text
=A%20board%20of%20directors%20(B,corporate%20management%20
and%20oversight%20policies.&text=Some%20private%20and%20nonp
rofit%20organizations%20also%20have%20a%20board%20of%20direct
ors
74. Risk Committee The 2015 G20 OECD Principles of CG - is a stand-alone committee
who has a chain that is independent directors to avoid dual-hatting with the chair of the
board or other committee. They are responsible for ensuring and oversighting the risk
management policies and procedures of the organization.
• Reference:
https://www.oecd.org/daf/ca/risk-management-corporate-
governance.pdf
75. The Board of Directors - – They are elected individual who represent shareholders and
took part in corporate management and oversight policies of the corporation. Their task
includes hiring and firing senior executives, dividend policies, options policies, executive
compensation, and setting the company’s goal. In addition, they are tsk to ensure that the
management actions adhere to the corporate’s vision.
• Reference:
https://www.investopedia.com/terms/b/boardofdirectors.asp#:~:text
=A%20board%20of%20directors%20(B,corporate%20management%20
and%20oversight%20policies.&text=Some%20private%20and%20nonp
rofit%20organizations%20also%20have%20a%20board%20of%20direct
ors
76. Risk Committee – is a independent member of board of directors their sole responsibility
is to oversighting the risk management policies and procedures of operations of the
corporation.
• Reference:
https://www.bnymellon.com/us/en/investor-relations/corporate-
governance/risk-
committee.html#:~:text=The%20Risk%20Committee%20(the%20%E2
%80%9CCommittee,of%20the%20Corporation's%20global%20risk
77. Rules-based Code of Ethics - is based on clear-cut rules and well-defined consequences
rather than individual monitoring of personal behavior. prescribe in detail or gives a set of
rules, how to behave. The Regulator provides rules and an organization must adopt and
implement control measures to ensure compliance with the rules. Despite strict adherence
to the law, some compliance-based codes of conduct do not thus promote a climate of
moral responsibility within the company.
• Reference:
https://www.etude.co.za/article.php?article=32
https://www.investopedia.com/terms/c/code-of-ethics.asp
78. Values-based Codes of Ethics - regulation outcomes and principles are set and the
controls, measures, procedures on how to achieve that outcome is left for each
organization to determine. Addresses a company's core value system. It may outline
standards of responsible conduct as they relate to the larger public good and the
environment. Value-based ethical codes may require a greater degree of self-regulation
than compliance-based codes.
• Reference:
https://www.investopedia.com/terms/c/code-of-ethics.asp
https://www.etude.co.za/article.php?article=32
80. Internal Audit Department - is a department within the entity that is responsible
with providing unbiased, independent reviews of systems, business organizations,
and processes.
• Reference:
https://linfordco.com/blog/what-is-internal-
audit/#:~:text=Internal%20Audit%20is%20a%20department,%2C%20b
usiness%20organizations%2C%20and%20processes.&text=Those%20in
dividuals%20working%20in%20Internal%20Audit%20are%20called%20
internal%20auditors.
81. Corporate Governance Charter - The Charter sets out the main aspects of a company’s
corporate governance, such as its governance structure, the internal regulations of the
Board of Directors, its committees, and the Executive Committee, together with other
important topics. It provides the Board of Directors of the Company with guidance in the
discharge of their duty to oversee the affairs of the Company for the benefit of the shareholders.
The Corporate Governance Charter has been approved by the Board, and pursuant to this Charter
the Board has designated committees to be appointed by the Board to assist the Board in fulfilling
its oversight responsibilities.
• Reference:
https://www.kbc.com/en/corporate-governance/corporate-
governance-charter.html
http://amerigoresources.com/_resources/governance/Corporate%20
Governance%20Charter.pdf
84.Board of Directors – They are elected individual who represent shareholders and took
part in corporate management and oversight policies of the corporation. Their task
includes hiring and firing senior executives, dividend policies, options policies, executive
compensation, and setting the company’s goal. In addition, they are tsk to ensure that the
management actions adhere to the corporate’s vision.
• Reference:
https://www.investopedia.com/terms/b/boardofdirectors.asp#:~:text
=A%20board%20of%20directors%20(B,corporate%20management%20
and%20oversight%20policies.&text=Some%20private%20and%20nonp
rofit%20organizations%20also%20have%20a%20board%20of%20direct
ors.
85. Non-Audit work – are services offered by a public accountant that is not relation to audit
and or review of financial statements during the period of audit engagement. Its scope and
nature are not stated in entity’s law; thus, it is agreed by entity and the firm.
• Reference
https://askanydifference.com/difference-between-audit-and-non-
audit-services/
87. Policies and Procedures - policies and procedures go hand-in-hand but are not
interchangeable. Policies are set of guidelines that would outline the entity’s plan in
dealing with situations. It is the bridge for the entity’s vision and mission and its day-
to-day operations. Meanwhile, procedures are the specific action plan taken by the
entity to carry out the policies. It guides and tells employees how to deal with
situations. With the help of policies and procedures, employees have a view of the
workplace. They have a view of the behavior and culture of the workplace.
• Reference:
https://www.i-sight.com/resources/policies-and-procedures-in-the-
workplace-the-ultimate-guide/
88. Internal Audit - evaluates the corporation’s internal control, including the corporate
governance and accounting processes. It ensures the corporate compliance with laws and
regulations and help maintain integrity in financial reports and date collection. It also helps
the managements to identify problems and correcting lapses for operation efficiency.
• Reference:
https://www.investopedia.com/terms/i/internalaudit.asp
90.Business Ethics – refers to the standard of the entity in terms of what is morally right and
wrong conduct, and its implementation. Through business ethics, the corporations ensure
the integrity among their employees and allows them to gain trust from key stakeholders.
It enhances the law by allows the corporate to choose guidelines to gain approval by the
public.
• Reference:
https://www.redlands.edu/study/schools-and-
centers/business/sbblog/2019/may-2019/3-reasons-why-business-
ethics-
important/#:~:text=By%20definition%2C%20business%20ethics%
20refers,and%20wrong%20conduct%20in%20business.&text=Cor
porations%20establish%20business%20ethics%20to,such%20as%
20investors%20and%20consumers.
91. Forensic – is a scientific method used to investigate crimes to prove something legally. It
is usually used in court.
• Reference:
https://www.vocabulary.com/dictionary/forensic
94.Economic Extortion – a fraud wherein the perpetrator demands the payment form the
benefactor to influence or make decision of a company in favor of the benefactor.
• Reference:
https://www.chegg.com/homework-help/economic-extortion-
chapter-3-problem-27rq-solution-9781305465114-exc
95. Bribery - an act of offering someone something in exchange of work to be done in
his behalf. It is an act of giving something to influence someone to do something.
• Reference:
https://study.com/academy/lesson/what-is-bribery-definition-laws-
examples.html
accountingtools.com/articles/bribery
96. Board Balance Scorecard - clarifies how the board intends to contribute to the
corporation. It details the task to be performed as part of the board’s basic mission.
• Reference:
https://hbswk.hbs.edu/item/boards-and-corporate-governance-
a-balanced-scorecard-approach
98. Oversight – refers to the taken actions by a officer to review and monitor public
sector organizations and their policies, plan, programs, and projects to ensure that
they achieve the expected results, represent good value for money, and comply
with policies, laws, regulations and ethical standards. They are only task to look but
not touch the day-to-day operation.
• Reference:
https://www.caaf-fcar.ca/en/oversight-concepts-and-
context/what-is-oversight-and-how-does-it-relate-to-governance
99. Documentation – they are legal and official documents or records that is kept and
used by the organization to inform decisions within the organization.
• Reference:
https://dictionary.cambridge.org/us/dictionary/english/documentat
ion
100. Fraud Audit - is a consulting type of audit wherein auditors are tasked to find clues for
possible fraudulent employees within the corporation. It is more detailed than the normal
audit because of the intensity of the audit wherein it includes the small amount of money
that falls under immaterial threshold. Fraud audit does not give opinion on the financial
statements.
• Reference:
https://www.accountingtools.com/articles/2017/5/10/fraud-audit
101. Separation of Chair and CEO – increases the board’s independence from
management and lead to better monitor and oversight results to high integrity of the
entity. A conflict might arise if both Chair and CEO is occupied by the same person. Chair is
responsible for marshalling the effective functioning of the board including the oversight of
management of the CEO – long-term perspective. Meanwhile, the CEO focused on the
short-term perspective and day-to-day management of the company.
• Reference:
https://bursa-malaysia.s3.amazonaws.com/reports/Pullout-I-
7-Practice-1-3.pdf
102. International Federation of Accountants – the global organization of accountancy
profession. Their mission is to serve the public interest by (1) contributing to the
adaptation, development and implementation of high-quality international standards
and guidance, (2) contributing to the development of strong professional accountancy
organizations, firms, and high-quality practices, (3) promoting the value of professional
accountant worldwide, and (4) speaking out on public interest issue related to
accounting profession expertise. The IFAC’s boards set the International Standards on
Auditing Assurance Engagements and Related Services, International Standards on
Quality Control, International Code of Ethics for Professional Accountants, International
Education Standards, and International Public Sector Accounting Standards.
• Reference:
https://www.ifac.org/system/files/downloads/facts_about_IF
AC.pdf
104. Low Integrity – In accounting, low integrity means biased, unfair, and unreliable
financial statements. Decisions are made based on how it will make them look rather than
how it will benefit others.
• Reference:
https://www.theladders.com/career-advice/the-best-way-to-detect-
lack-of-integrity-in-others
107. Forensic Accountants - a accountant that utilizes their accounting and auditing skill
with their investigative skills to what events actually took place in financial settings. They
investigate fraud and uncover financial crimes.
• Reference:
https://www.cpatrainingcenter.com/forensic-certified-public-
accountant-designation-pa1006334
108. Corporate Raiding - an act or practice of buying majority of the stake of a publicly-
traded corporate to take-over the corporate management and replace successor. It is also
known as venture arbitrage
• Reference:
https://financial-dictionary.thefreedictionary.com/Corporate+Raiding
109. Fraud Business - consists of dishonest and illegal activities perpetrated by individuals
or companies in order to provide an advantageous financial outcome to those persons or
establishments. These schemes often appear under the guise of legitimate business
practices.
• Reference:
https://www.fbi.gov/scams-and-safety/common-scams-and-
crimes/business-fraud
110. Fraud Triangle – is developed by Donald Cressey. Its three elements are opportunity,
pressure, and rationalization. Opportunity means there must be something to steal and a
way to steal. It is often the hardest to spot but easily controllable through organizational or
procedural changes. Pressure means what motivates them to commit fraud. It is might be
due to financial instability of entity that derives them to committee fraud. Rationalization
means that the person who committed fraudulent actions thought that the gain to be
realized from the actions outweighs the possibility for detection.
• Reference:
https://www.agacgfm.org/Intergov/Fraud-Prevention/Fraud-
Awareness-Mitigation/Fraud-Triangle.aspx
111. Business Continuity Plan - document prepared by the board to identify steps to be
taken to keep the business operation in case of emergency or significant business
disruption. It increases the confidence of the team and of the customers to the bus9iness,
and reduce recovery timescales. There are five key elements of business continuity plan –
(1) Risks and potential business impact, (2) Planning an effective response, (3) Roles and
responsibilities, (4) Communication, (5) Testing and training.
• Reference:
https://www.qmsuk.com/news/what-are-the-5-key-
components-of-a-business-continuity-plan
112. Three-tier Security Checks - a security check that is divided into three different
servers that works independently to secure and protect one system.
• Reference:
https://en.cloudbric.com/blog/2014/12/3-tiers-and-owasp-open-web-
application-security-project/
113. Corporate Integrity - The goals and objectives of the managers and the shareholders
are undivided and complete. It also means aligning the corporate goal with honest,
transparency, and truthfulness to enhances the viability, competitiveness and its longevity.
• Reference:
https://www.criticaleye.com/inspiring/insights-
servfile.cfm?id=56#:~:text=Corporate%20integrity%20is%20about%20enh
ancing,may%20fatally%20damage%20a%20company.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1259947
114. High Integrity – means a person, organization and/or reports are reliable and
trustworthy. It is free from any bias and fraudulent actions.
• Reference:
https://www.michaelpage.com.au/advice/career-advice/productivity-
and-performance/what-integrity-workplace
115. Corporate Development Officer (CDO) – plays an important role in the strategic
initiatives and revenue growth of the firm. They identify profitable business opportunities,
secure sound business deals, and lead business development associates. They possess keen
business acumen, a solid finance/financial background, and strong interpersonal skills.
Often, based on their skills and the experience they gain along the way, CDOs ultimately
land C-suite positions within their organizations
• Reference:
https://www.betterteam.com/business-development-officer-job-
description
116. Corporate Information Officer (CIO) - is a corporate executive responsible for the
management, implementation, and usability of information and computer
technologies. They also analyzed how various technologies benefit the company or
improve an existing business process and then integrates a system to realize that benefit or
improvement. The CIO's responsibilities include the following: (1) managing IT staff and
developing department goals; (2) developing and overseeing the IT budget; (3)
planning, deploying and maintaining IT systems and operations; (4)managing the
organization's software development needs; (5) developing IT policies, procedures and
best practices; (6) staying updated on IT trends and emerging technologies; (7)
developing and enforcing IT best practices across the organization; (8) ensuring IT
strategies and processes support company-wide goals; (9) overseeing relationships
with vendors, contractors and service providers; and (10) explaining to the board of
directors and other executives the benefits and risks of new IT-related projects.
• Reference:
https://www.investopedia.com/terms/c/cio.asp
117. Chief Risk Officer – a corporate executive responsible for identifying, analyzing, and
mitigating internal and external risks. They ensure that the corporate complies with the
government regulations and policies, and reviews factors that would affect the business
units and investments.
• Reference:
https://www.investopedia.com/terms/c/chief-risk-officer-cro.asp
• Reference:
https://www.invensislearning.com/blog/chief-risk-officer-roles-
responsibilities/
121. Chief Internal Auditor (CIA) - The chief internal auditor is employed by an
organization to analyze its operations and finances, ensuring there are no discrepancies,
identifying issues that exist, and addressing those problems. They often work with
accounting departments and other financial officers. The chief internal auditor may offer
advice or counseling to upper management, but they generally not take an active role in
implementing any changes. the most important traits for a chief internal auditor are
objectivity and honesty. The chief auditor must avoid conflicts of interest while performing
job duties, as the value of their work depends on those traits. Also necessary are strong
analytical capabilities, a powerful eye for detail, and the diligence to ensure that the final
report accurately represents the findings of the audit.
• Reference:
https://www.payscale.com/research/IN/Job=Chief_Internal_A
uditor/Salary
123. Chief Compliance Officer (CCO) – is primarily responsible for overseeing compliance
within an organization, and ensuring compliance with laws, regulatory requirements,
policies, and procedures. CCO is responsible for establishing standards and implementing
procedures to ensure that the compliance programs throughout the organization are
effective and efficient in identifying, preventing, detecting, and correcting noncompliance
with applicable laws and regulations. The CCO has to provide reasonable assurance to
senior management and the Board that there are effective and efficient policies and
procedures in place, well understood and respected by all employees, and that the
company is complying with all regulatory requirements.
• Reference:
https://www.chief-compliance-officer.org/
124. Functions/Responsibilities of the CCO - These are some of the Chief Compliance
Officer's responsibilities:
I. Defining the necessary level of knowledge on existing and emerging regulatory
compliance requirements across the organization.
II. Developing the annual compliance work plan that reflects the organization's unique
characteristics.
III. Periodically revising the compliance plan in light of changes.
IV. Guiding in a productive, professional way, the compliance teams.
V. Overseeing and monitoring the implementation of the compliance program.
VI. Providing guidance, advice, and training.
VII. Providing strategic direction to the management team on compliance.
VIII. Preparing and presenting clear and concise compliance reports to the Board.
IX. Interacting with regulators on compliance issues.
X. Coordinating efforts related to audits, reviews, and examinations.
XI. Developing policies and programs that encourage managers and employees to
report suspected fraud and other improprieties, without fear of retaliation.
XII. Coordinating internal compliance review and monitoring activities, including
periodic reviews of departments.
XIII. Independently investigating and acting on matters related to compliance.
XIV. Monitoring external review processes.
• Reference:
https://www.chief-compliance-officer.org/
125. Chief Governance Office (CGO) – is recognized as a strategic liaison between the
board and management. The CGO is a governance facilitator who, at a glance, ensures the
effective delivery of strategic governance, legal and regulatory compliance, record
management and public/government relations of the organization.
• Reference:
https://www.watsoninc.ca/the-chief-governance-officer/
127. The Bernie Madoff Case – a largest Ponzi Scheme that defraud tens of billons of
dollars from thousands of investors in a span of 17 years. The investment money made by
the new investors are being deposited on single bank account and distribute it to the old
investors who wanted to cash out as returns from their investments. Split-strike
conversion, an actual trading strategy, is the investing strategy Madoff told his investors.
• Reference:
https://www.investopedia.com/terms/b/bernard-
madoff.asp#:~:text=In%202009%2C%20at%20age%2071,up%20to%20the
%20financial%20crisis.
128. Ponzi Scheme – is an investment scheme that pays the existing inventors who
wanted to cash out with the funds collected from the new investors. They promise their
investors that they will invest their money with high returns but no to little risk. The
following are the early warning of Ponzi Scheme: (1) High returns with little or no risk ; (2)
Overly consistent returns; (3) Unregistered investments; (4) Unlicensed sellers; (5)
Secretive, complex strategies; (6) Issues with paperwork; (7) Difficulty receiving
payments. One significant example of these scheme is the Aman Investment in Pagadian
City.
• Reference:
https://www.investor.gov/protect-your-investments/fraud/types-
fraud/ponzi-
scheme#:~:text=A%20Ponzi%20scheme%20is%20an,with%20little%20or%
20no%20risk.
129. WorldCom Accounting Scandal – is one of the biggest accounting scandals in the
United States wherein they cooked their financial statements to appear as profitable
despite having net loss. WorldCom became suspicious after the Enron Scandal broke in the
business world. The scandal led to the formation of Sarbanes-Oxley Act in July 2002.
• Reference:
https://www.investopedia.com/terms/w/worldcom.asp
130. Three Key Elements of Integrity – The three key elements are:
I. Incorruptibility has been an important part of our profession. ethics are known as a
person’s value system. Ethics and objectivity are fundamental principles that
accounting professionals choose to abide by. Financial information obtained from
an accountant is heavily relied upon by many, such as businesses, creditors,
investors and the public, so it is very important for accountants to use reasonable
judgement and maintain ethical practices.
II. Completeness can be satisfied by having a general framework to follow. As with
many industries, the accounting industry has rules and regulations that must be
followed, especially with the presentation of financial statements. These rules and
regulations help accountants maintain integrity and uniformity.
III. Communication is an important aspect of our integrity. Technology changes
continually, and the accounting profession has seen astronomical changes in recent
years. Though the advancement in technology has been far more beneficial to
accountants and their clients, it still has come with challenges due to cyberattacks.
Utilizing technology to assist in our communication allows us to better serve you by
having the ability to complete tasks timelier and store information in a more
organized fashion with easier access on demand, which provides flexibility to you.
• Reference:
https://www.yeoandyeo.com/resource/why-the-three-key-elements-
of-integrity-are-critical-for-your-
accountant#:~:text=For%20many%2C%20integrity%20is%20incorrupti
bility,accountants%20provide%20for%20their%20clients%3F
132. Code of Ethics in Auditing – States that the principles and expectations governing
the behavior of the individual and organization when conducting an audit. The code of
ethics principles is: (1) Integrity – establishes trust, and provides the basis for reliance of
judgement; (2) Objectivity – highest level of professional objectivity in gathering,
evaluating, and communicating information about the examined documents; (3)
Confidentiality – respect the values and ownership of the information; (4) Competency –
applies the knowledge, skills, and experience needed.
• Reference:
https://www.theiia.org/en/standards/what-are-the-
standards/mandatory-guidance/code-of-
ethics/#:~:text=The%20Code%20of%20Ethics%20states,expectations%20r
ather%20than%20specific%20activities.
• Reference:
https://linfordco.com/blog/what-is-an-internal-auditor/
137. Determinants of Effective Internal Audit System – The effective internal audit in the
office links with internal control risk management system, improves organizational efficiency and
effectiveness, reduce information asymmetry during decision making, and ensures internal
reliability of financial reporting process. Effectiveness of internal Audit increases, when there were
more supports from the management, have adequate and competent internal auditors’ staff in the
office combined with the availability of approved IA charters, the management’s perception of IA’s
value, and organizational independence of the IA work.
• Reference:
https://core.ac.uk/download/pdf/29136383.pdf
138. Objective Areas of COSO (Operations, reporting & compliance) – The COSO
framework divides internal control objectives into three categories:
I. Operations objectives, such as performance goals and securing the organization’s
assets against fraud, focus on the effectiveness and efficiency of your business
operations.
II. Reporting objectives, including both internal and external financial reporting as well as
non-financial reporting, relate to transparency, timeliness and reliability of the
organization’s reporting habits.
III. Compliance objectives are internal control goals based around adhering to laws and
regulations that the organization must comply with.
• Reference:
https://www.i-sight.com/resources/coso-framework-what-it-is-and-how-
to-use-it/
139. SOX Compliance and Security Control – The SOX compliance includes:
Title I: Public Company Accounting Oversight Board
- Establishing the PCAOB
- Requiring accounting firm to register with the PCAOB
- Establishing auditing standards, including evaluation of internal
control structures, assurance over transaction documentation,
reporting of material control weaknesses, and noncompliance
- Authorizing PCAOB to impose sanctions
- Requiring the adoption of a principles-based accounting system
Title II: Auditor Independence
- Prohibiting auditors from engaging in specified non-audit services
while engaging in audit work for the client
- Audit committee governance overall auditing and non-auditing
services and disclosing approvals to investors
- Audit reports that include critical accounting policies and practices
used, alternate treatments discussed with management officials,
auditor treatment preference, material written communications
between the auditor and senior management
- Audit committee pre-approval of all auditing and non-auditing
services, disclosing pre-approval to investors
- Prohibiting auditor from engaging with an organization if the auditor
had previously employed the organization’s senior executives within
the previous year to remove the conflict-of-interest issues
- Constraints on how long an auditor can work with an organization
Title III: Corporate Responsibility
- SEC creating requirements that principal executive officer and principal
financial officer are responsible for internal controls and receive all material
information, certify that financial reports do not contain false statements or
material omissions, and certify financial statement fairly present financial
condition and operations
- Senior officers certify that auditors and audit committee know all
significant internal control deficiencies and any fraud
- Corporate personnel attempting to exert improper influence on auditor is
illegal
- Senior leadership or Board of Directors activities that are illegal
- Lawyer professional responsibilities
- Establishment of civil penalties
• Reference:
https://securityscorecard.com/blog/what-is-sox-compliance
140. Fraud Audit – is a consulting type of audit wherein auditors are tasked to find clues for
possible fraudulent employees within the corporation. It is more detailed than the normal
audit because of the intensity of the audit wherein it includes the small amount of money
that falls under immaterial threshold. Fraud audit does not give opinion on the financial
statements.
• Reference:
https://www.accountingtools.com/articles/2017/5/10/fraud-audit
141. Fraud Investigation – is an investigation conducted to protect and offer justice to the
victim and punish the fraudster through the practice of accounting and investigative skills.
It examines evidence to determine whether fraud occurred, how it happened and how
much was the lost money, and who were involved.
• Reference:
https://www.wiley.com/en-
gb/Expert+Fraud+Investigation%3A+A+Step+by+Step+Guide-p-
9780470387962
https://www.delta-net.com/compliance/fraud-awareness/faqs/what-
is-fraud-investigation
142. Standing Plans – are plans that can be used over and over again and is also called
repeated plans. These are plans formulated to guided managerial decisions and actions on
problems which recurring in nature, thus, it saves time for the managers. It includes
objectives policies, procedures, methods, rules and strategies. The following are the
advantages of standing plan:
I. Standing plans help in achieving co-ordination in the enterprise. These plans bring
consistency, uniformity and unity in efforts.
II. Senior executives are able to delegate their work to subordinates since procedures,
rules, regulations etc. have been laid down for taking necessary decisions.
III. These plans help in achieving goals even if these are vague, complex or multi-
dimensional. The policies, methods, rules, procedures etc. provide ready frames of
reference whenever some difficulty arises in taking decisions.
IV. Standing plans are formed after a lot of thinking, discussions and arguments. Whenever
decisions are needed to be taken, these plans help in quick decision making. These
plans are great labor-saving devices as they provide frames of references for tackling
recurring situations.
• Reference:
https://courses.lumenlearning.com/wm-
principlesofmanagement/chapter/reading-types-of-plans-and-common-
planning-
tools/#:~:text=Standing%20plans%20are%20plans%20designed,to%20sup
port%20stated%20organizational%20values.
https://www.yourarticlelibrary.com/management/planning-
management/plan-types-standing-and-single-use-plans-with-
diagram/53194
143. Single-Use Plans – are plans that is used for specific problems that is not recurring in
nature. They are formulated to handle non-repetitive and unique problems; thus, it cannot
be used over and over again. The length of the plans varies, but the most common types
are budgets and project schedules. It is also known as specific plans.
• Reference:
https://courses.lumenlearning.com/wm-
principlesofmanagement/chapter/reading-types-of-plans-and-common-
planning-
tools/#:~:text=Standing%20plans%20are%20plans%20designed,to%20sup
port%20stated%20organizational%20values.
https://www.yourarticlelibrary.com/management/planning-
management/plan-types-standing-and-single-use-plans-with-
diagram/53194
145. Strat Planning Process – the purpose of strat planning process is to help organization set
goals and have plan to achieve the goals. It is an integral to an organization’s longevity. There are
seven (7) steps of strat planning process: (1) Understand the need for a strategic plan; (2) Set
goals; (3) Develop assumptions or premises; (4) Research different ways to achieve objectives;
(5) Choose your plan of action; (6) Develop a supporting plan; (7) Implement the strategic plan.
• Reference:
https://www.indeed.com/career-advice/career-
development/strategic-planning-process
151. People, Performance, Process & Purpose (4Ps of CG) – the guiding philosophies
of the existence of governance and its operation. People are the organizer or founders who
determine the purpose, develop process to achieve it, evaluate their performance
outcomes, and use those outcomes to grow themselves and others as people. Every side of
business equation needs people. Purpose the reason why the governance exists. It is the
guiding principle and mission statement of the corporation. Processes are refined over time
in order to consistently achieve their purpose, and it’s always smart to take a critical eye to
your governance processes. Governance is the process by which people achieve their
company’s purpose, and that process is developed by analyzing performance. Performance
analysis is a key skill in any industry. The ability to look at the results of a process and
determine whether it was successful (or successful enough), and then apply those findings
to the rest of your organization, is one of the primary functions of the governance process.
• Reference:
https://processpa.com/ExecutiveMatters/the-four-ps-of-corporate-
governance#:~:text=That's%20why%20many%20governance%20exper
ts,each%20of%20the%20Ps%20means.
154. External Audit – the in-depth examination of the financial record by an independent
account who does not have any connection to the entity.
• Reference:
https://www.ageras.com/dictionary/external-
audit#:~:text=An%20external%20audit%20is%20an,results%20in%20a
%20verified%20certification.&text=During%20the%20process%20of%2
0an,company's%20financial%20and%20accounting%20records.
162. KRAs (Key Result areas) - refer to the general metrics or parameters which the
organization has fixed for a specific role. The term outlines the scope of the job profile, and
captures almost 80%-8% of a work role.
• Reference:
https://m.economictimes.com/definition/key-result-areas?from=desktop
164. Corporate Raiding – an act or practice of buying majority of the stake of a publicly-
traded corporate to take-over the corporate management and replace successor. It is also
known as venture arbitrage
• Reference:
https://financial-dictionary.thefreedictionary.com/Corporate+Raiding
165. Corporate and Criminal Fraud Accountability – an act amended to prohibit (1) any
person to knowingly alter, destroy, or falsifying record to influence an investigation in
bankruptcy, and (2) an accountant who conducts an audit of an issuer of securities from
failing to maintain all audit or review work papers for a five-year period. Directs the
Securities and Exchange Commission to promulgate regulations regarding the retention by
such an accountant of audit records that contain conclusions, opinions, analyses, or
financial data.
• Reference:
https://www.congress.gov/bill/107th-congress/senate-
bill/2010?s=1&r=74#:~:text=Corporate%20and%20Criminal%20Fraud%2
0Accountability%20Act%20of%202002%20%2D%20Amends%20the,ba
nkruptcy%3B%20and%20(2)%20an
170. Board Resolution – is a formal document that identifies the roles of corporate officers
and the results of decisions or votes the board make in line with the corporate
management. It is usually written whenever there is a new board member or when the
company wants to expand, hire, or retrenchment. It can be found in board minutes.
• Reference:
https://www.rocketlawyer.com/business-and-contracts/business-
operations/corporate-records/legal-guide/what-is-a-board-
resolution#:~:text=A%20Board%20Resolution%20is%20a,board%20ma
kes%20regarding%20the%20company.&text=Board%20Resolutions%2
0can%20be%20found,made%20at%20a%20board%20meeting.