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Ethics Class Group 5 Auditors and Audits
Ethics Class Group 5 Auditors and Audits
GROUP PRESENTATION
•The principal stakeholders are the shareholders, management and the board of
directors, along with other stakeholders like employees, suppliers, customers, banks
and other lenders, regulators, and the community at large
•Key elements of good corporate governance principles include honesty, trust and
integrity, openness, performance orientation, responsibility and accountability,
mutual respect, and commitment to the organization.
• Auditor:
– Auditor is a certified person/firm that performs the auditing activity
– The auditor does not have direct corporate governance responsibility
but rather provides a check on the information aspects of the
governance system
– Auditors’ primary role is to check whether the financial information
given to investors is reliable, thus contributing in decision making,
accountability, and monitoring of the system
• The scope of internal auditing may involve internal control topics such as the
efficacy of operations, the reliability of financial reporting, investigating
fraud, safeguarding assets, and compliance with laws and regulations.
• Internal Auditors:
– Internal auditors’ primary responsibilities include appraising an entity's
risk management strategy and practices, management control
frameworks and governance processes, but they do not express an
opinion on the entity's financial statements
• External Auditors:
– The primary role of external auditors is to express an opinion on
whether an entity's financial statements are free of material
misstatements
– Moreover, they must also investigate any material issues raised by
inquiries from professional or regulatory authorities
The Board of
Directors
The specifics of the board’s role will vary with size, stage and strategy of
the company and talents and personalities of the CEO and the board
Money laundering
Accounting Fraud Insider Trading
Management of Oilcorp bid to remove BTMH and to replace with Horwarth (May 2007 ~)
OILCORP
BTMH HORWARTH
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