BEC Wiley

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Anonymous
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155949
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BEC Wiley
Updated:
2012-05-26 20:24:58
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Personal BEC Wiley Notes
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  1. Forms of Executive Compensation
    • 1. Base Salary and Bonuses
    • 2. Stock Options.
    • 3. Stock grants.
    • 4. Executive perquisites (perks).
  2. The best forms of executive compensation.
    Include a combination of fixed compensation and incentive compensation that is related to long-term stock price.
  3. Internal Monitoring Devices of mangement behavior.
    • 1. Board of directors.
    • 2. Internal auditors.
  4. External Monitoring Devices of mangement behavior.
    • 1. External auditors.
    • 2. Analysts.
    • 3. Credit angencies.
    • 4. Attorneys.
    • 5. SEC.
    • 6. IRS.
  5. Board of directors responsibilities.
    • 1. Hiring and firing top management.
    • 2. Voting on major operating and financial proposals.
    • 3. Providing advice to management.
    • 4. Ensuring accurate financial reporting by the corporation.
  6. Board of directors committees.
    • 1. Nominating/corporate governance committee.
    • 2. Compensation committee.
    • 3. Audit committee.
  7. Nominating/corporate governance committee responsibilities.
    • 1. Oversees board organization.
    • 2. Determines director qualifications and training.
    • 3. Develops corporate governance principles.
    • 4. Oversees CEO succession.
  8. SOX definition of Audit Committee.
    A committee established by and amongst the board of directors of an issuer for the purpose of overseeing the accounting and fincial reporting process of the issuer; and audits of the financial statements of the issuer.
  9. SOX's characteristics of the Audit Committee.
    • 1. At least one member should be a "financial expert".
    • 2. Should appoint, determine compensation of, and ovesee the work of the external auditor.
    • 3. External auditor must report directly to the committee.
    • 4. Internal auditor should have direct access to the committee.
    • 5. Establish procedures to receive and treat complaints regarding accounting or auditing matters.
    • 6. Officers are responsible of effective internal control.
  10. Compensation committee responsibilities.
    • 1. Reviews and approves CEO compensation based on performance goals.
    • 2. Makes recommendations to the board with respect to incentive and equity-based compensation plans.
    • 3. Attempts to align incentives with shareholder objectives and risk appetite.
  11. What is COSO?
    Committee of Sponsoring Organizations.
  12. 5 components of COSO Internal Control.
    • 1. Control Environment.
    • 2. Risk Assessment.
    • 3. Control Activities.
    • 4. Information and communication.
    • 5. Monitoring.
  13. Factors of Control Environment (CHOPPER)
    • 1. Commitment to Competence.
    • 2. Human resource policies and procedures.
    • 3. Organizational structure.
    • 4. Philosphy and Operating style of Management.
    • 5. Participation of board of directors or audit committee.
    • 5. Ethical and integrity values.
    • 6. Responsibility and authority assignment.
  14. Control Activities components. (PIPS)
    • 1. Performance reviews.
    • 2. Information processing.
    • 3. Physical controls.
    • 4. Segregation of Duties.
  15. Segregation duties components. (ARCCs)
    • 1. Authorizing.
    • 2. Recording.
    • 3. Custody of assets.
    • 4. Comparisons (recons)
  16. Components of COSO-ERM
    • 1. Internal environment.
    • 2. Objective Setting.
    • 3. Event identification.
    • 4. Risk Assessment.
    • 5. Risk Response.
    • 6. Control activities.
    • 7. Information and communication.
    • 8. Monitoring
  17. 4 types of risk responses.
    • 1. Avoidance.
    • 2. Reduction.
    • 3. Sharing.
    • 4. Acceptance.
  18. Limitations of Enterprise Risk Management.
    • 1. Risk relates to the future which is uncertain.
    • 2. ERM provides information about risks of achiving objectives, but cannot provide reasonable assurance that objectives will be achieved.
    • 3. ERM cannot eliminate all risks.

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