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ZR, Role and Responsibilty of Management
ZR, Role and Responsibilty of Management
Management
Chapter VI
Chapter Objectives:
Introduce the managerial function of corporate governance.
Understand the roles, responsibilities, and duties of corporate
senior executives, including the CEO and CFO.
Identify the components of executive compensation and illustrate
how each of these components relates to effective corporate
governance.
Identify the financial reporting requirements of public companies
and SOX provisions that pertain to management certifications of
financial reports and internal controls.
Be aware of financial reporting challenges facing public companies
including off balance sheet arrangements, aggregate contractual
obligations, and critical accounting policies and practices.
Discuss managements responsibilities for ICFR.
Provide an overview of the costs and benefits resulting from Section
404 compliance.
Key Terms
Chief audit executive (CAE)
Chief risk officer (CRO)
Corporate development officer (CDO)
Enterprise risk management (ERM)
EXtensible Business Reporting Language (XBRL)
Financial Accounting Standards Board (FASB)
Institute of Internal Auditors
Research Foundation
International Accounting Standards Board (IASB)
International Financial Reporting Standards (IFRS)
Joint Committee on Taxation
other postemployment benefits (OPEB)
tax shelter
Management Responsibilities
Operating Process. The operating process entails: (1) operating
activities of designing products and services, marketing and
delivering products, invoicing products, and servicing customers;
(2) investing activities of investing in both human and capital
resources; and (3) financing activities of funding investments and
expenditures through internal growth, issuing stocks, or incurring
debt.
CICO
1. Salary
2. Annual Incentive compensation (bonus)
3. Long-term incentive compensation
4. Stock options award (those should be recognized as expense in the
income statements according to the provisions of SFAS No. 123(R))
5. Employment contracts, severance, and change-of-control payments
6. Retirement arrangements
7. Stock ownership.
Section 302
Financial Reporting Requirements
Small Reporting Companies