BEC 1 Flashcards
BoT has sole discretion to
declare dividends (distro to shareholder’s)
Officers (CFO/CEO) are selected/removed by
BoT - with or without cause
quorum
vote by majority of BoT (8 of 15)
____ resolved disputes b/n auditor & mgmt
AUDIT COMMITTEE
2 Qual for being on a Audit Committee
BoT mem & independent
_____ est whistle blower policy
AUDIT COMMITTEE
3 examples of OFF b/s trns
- op lease; 2. lawsuits; 3. related party trans
SPE
Special Purpose Entity
disclose ownership of ____ or more
10%
at least 1 mem of aud comm must be a _____
FINANCIAL EXPERT (in order to resolve mgmt/aud disputes)
SEC consider what factor when selecting puc co for review (C PERV)
C=large market Cap; P=diff P/e ratio; E=affect Economy (lrg bank); R=issued mat Restatemnt; V=Volatility in stock
SEC consider what factor when selecting puc co for review (C perv)
C=large market Cap; P=diff P/e ratio; E=affect Economy (lrg bank); R=issued mat Restatemnt; V=Volatility in stock
SEC consider what factor when selecting puc co for review (c Perv)
C=large market Cap; P=diff P/e ratio; E=affect Economy (lrg bank); R=issued mat Restatemnt; V=Volatility in stock
SEC consider what factor when selecting puc co for review (c pErv)
C=large market Cap; P=diff P/e ratio; E=affect Economy (lrg bank); R=issued mat Restatemnt; V=Volatility in stock
SEC consider what factor when selecting puc co for review (c peRv)
C=large market Cap; P=diff P/e ratio; E=affect Economy (lrg bank); R=issued mat Restatemnt; V=Volatility in stock
SEC consider what factor when selecting puc co for review (c perV)
C=large market Cap; P=diff P/e ratio; E=affect Economy (lrg bank); R=issued mat Restatemnt; V=Volatility in stock
statute of limitations
(earlier of 2 or 5) 2 yrs after discover OR 5 yrs after violation
ERISA
Ee Retirement Income Security Act
Tampering with records penaly is up to ___ yr in prison
20
CRIME
Control Environment; mgmt Risk Assess; Info & comm sys; Monitoring; Exist control activities
COSO/ic is ____ based
principles-based (must apply judgement)
3 framework objective of i/c (COSO) orc
- op objectives; 2. reporting obj; 3. compliance obj
Reporting objective pertains to
reliab, time, transparency
Operations obj relates to
effectiveness & efficieny of operations
Compliance objectives are established to
ensure adherence to laws & regs
ERM
Enterprise Risk Mgmt
Components of ERM: CRRRIMES
C=Control/internal enviro; R=assess Risk; R=id Risk; R=Risk response; I=Info & comm sys; M=Monitoring; E=Effective control activities; S=Setting objectives (orcS)
Control/Internal Environment Factors (EBOCA HR)
(EBOCA HR) E=Ethical val & integrity; B=Board oversight; O=Org structure; C=Commitment to Competence; A=Accountability; HR=hiring, risk mgmt/appetite
Info Quality (FACT)
F=Fair; A=Accurate/Accessible/ Appropriate; C=Current; T=Timely
External benchmarks aka
PRODUCTIVITY MEASURES = variance, efficiency
TFPR
Total Factor Productivity Ratios (output/total cost aka material AND labor)
PPR
Partial Factor Productivity Ratios (output/material OR labor)
what do effective performance measures do?
promote/motivate the achievement of goals
transaction marketing is based on
lowest price (single sale)
interaction-based relationship marketing focuses on
repeat business/ loyalty discounts
database marketing focuses on
Target goups
e-marketing involves the use of
the internet
network marketing focuses on
relationships and REFERRALS
incentivize ee’s
motivate, compensate, retain
prime cost =
DM + DL
conversion cost =
DL + OH
period cost are on which f/s
i/s
OH =
IM + IL + oOH (indirect material + indirect labor + other overhead ie factory cost)
objectives of cost accounting (3 PIE)
P=Product costing; I=Income; E=Efficiency
2 categories of indirect cost
factory = product cost (OH); office = period (S,G&A)
job costing is used for
custom orders
process costing is used for
mass production
abnormal spoilage is a _____ cost
PERIOD
reviewing/updating mission values correlates to what component of i/c?
MONITORING
