ASSIGNMENT MANAGEMENT CONTROL SYSTEM

Kasih Karunia Ranty – 008201800067

1. Compares two corporate governance models: the Anglo-American and the
Continental European model. These corporate governance models differ strongly,
and the differences are mainly due to differences in the business context. The
problems arising from separation of ownership from control will thus have to be
solved through different mechanisms. One important mechanism is the board of
directors. The board composition of 122 companies has been analyzed in a Belgian
empirical study

2. The Sarbanes-Oxley Act was signed into law on 30 July 2002 by President Bush. The
Act is designed to oversee the financial reporting landscape for finance
professionals. Its purpose is to review legislative audit requirements and to protect
investors by improving the accuracy and reliability of corporate disclosures.

3. Defining Fiduciary Duties

Nonprofit board members make many important decisions, such as recruiting and
appointing new board directors, hiring and firing managers and other staff
members, monitoring financial reports and conducting an annual audit. All of these
duties fall under the duty of care, duty of loyalty or duty of obedience.
Duty of careduty of care means that board directors must give the same care and
concern to their board responsibilities as any prudent and ordinary person would.
This means board members should be actively participating in board meetings and
on committees.
Duty of Obedience: Duty of obedience means that board directors must make sure
that the nonprofit is abiding by all applicable laws and regulations and doesn’t
engage in illegal or unauthorized activities. The duty of obedience also means that
board directors must carry out the organization’s mission in accordance with the
purpose they stated in getting qualified as a nonprofit organization.

4. The board of directors is the highest governing authority within the management
structure at a corporation or publicly traded business. The board owes a company's
shareholders the highest financial duty under American law, known as a fiduciary
duty.
It's the board's job to:
Select, evaluate, and approve appropriate compensation for the company's chief
executive officer (CEO). Evaluate the attractiveness of and pay dividends,
recommend stock splits. Oversee share repurchase programs. Approve the
company's financial statements, ecommend or strongly discourage acquisitions
and mergers

5. • Audit committees : provide independent oversight over companies’

financial reporting processes, internal controls, and independent auditors. They
enhance a board’s ability to focus intensively and relatively inexpensively (without
involving the full board) on the corporation’s financial reporting-related functions.
 The audit committee can expect to review significant accounting and reporting
issues and recent professional and regulatory pronouncements to understand the
potential impact on financial statements.
• Compensation committees : Compensation committees deal with issues
related to the compensation and benefits provided to employees, and particularly
top executives. In some companies, the compensation committee also provides
oversight regarding the design anoperation of retirement plans. Compensation
committees should be an authority on best practices, trends and regulations
regarding executive compensation. In this capacity, they serve as advisors to the
board.

6. The finance and accounting functions in a corporation are typically managed by a

person with the title of chief financial officer (CFO) or vice president finance (VP
Finance). In larger firms, the finance/accounting related functions are typically
divided between two roles – controller and treasurer :
• The treasurer function : deals primarily with raising and managing capital
The treasury function is generally highly centralized; the controllership function
may be centralized, but it is often decentralized in larger corporations, as
divisionalized corporations usually have controllers in most or all of their profit
centers and some of their larger cost centers (such as plants)
• the controller function deals primarily with financial record keeping,
reporting, and control.

7.
8. Financial audit is a routine job In a financial audit, external auditors are engaged
to obtain and evaluate evidence regarding assertions on financial statements
about economic actions, to ascertain the degree of correspondence between those
assertions and established criteria and also to communicate to the interested user
whether the financial statements prepared by management are fairly presented in
accordance with the generally accepted accounting principle. In financial audits,
the auditor obtains the evidence on the degree of correspondence between
assertions in the financial statement and GAAP and underlying accounts data.
Financial audits are required by regulators such as the Nigerian stock exchange
(NSE), and other governmental bodies for example the FIRS (Federal inland
revenue services) uses a company’s financial statement to assess the company to
tax
- Compliance audit is an audit done to ascertain the preparation or compliance
with the regulatory guidelines. Regulations can be imposed by government
entities, international standard and best practice setting organization like ISO ,
particular Industry governing federations like NASSCOM. Independent
accountants, security or IT consultants evaluate the strength and thoroughness of
compliance preparations and then accordingly give non conformance report which
needs to be closed on time for obtaining or continuing certification. There also can
be monetary penalty including imprisonment, and nullification of certification to
remain in business etc for noncompliance observed.
- Performance audit refers to an independent examination of a program, function,
operation or the management systems and procedures .This is usually applicable
for governmental or non-profit entity to assess whether the entity is achieving
economy, efficiency and effectiveness in the utilization of available resources.