Corporate Governance Flashcards
ERM Framework - What component of enterprise risk management addresses an entity’s assignment of authority & responsibility?
Internal Environment
ERM Framework - What component of enterprise risk management addresses an entity’s reporting deficiencies?
Monitoring
Which Internal control framework addresses an entity’s timely reporting of identified internal control deficiencies?
Monitoring
Appropriate knowledge, skills, & abilities to prepare timely & effective financial reporting is applying the ideas from which principle?
Financial reporting competencies.
Sarbanes-Oxley Act addresses the problems related to inadequate board oversight by requiring public companies to have an:
Audit Committee
Management report on internal control include:
1) Conclusion about the effectiveness of the company’s internal controls
2) statement that the auditor has attested & reported on management’s evaluation of internal controls
3) Statement of management’s responsibilities for establishing & maintaining adequate internal controls.
Control activities are most closely related to:
Risk responses
The board of directors has a:
fiduciary responsibility to act on behalf of and in the best interest of the corporation.
The criteria for evaluating the effectiveness of enterprise risk management are:
the components of the ERM framework
A financial expert serving on the audit committee of an issuer must have experience with:
Internal accounting controls
Productivity Ratios
Total productivity ratios (TPRS) consider all inputs simultaneously as well as the prices of the inputs.
Pareto Diagrams
display the individual & cumulative frequency of quality issues, defects, or problems.
Allocating Joint costs to joint products: Sales price less the cost to complete is defined as:
Net sales value at split-off
Allocating Joint costs to joint products: Sales price less cost to complete after split-off, is assumed to be equal to:
Relative sales value at split-off
Direct Labor
represents the cost of labor directly associated with the manufacturing of the finished product.
Product cost
assigned good that were either purchased or manufactured for resale.
A cost that would decrease if production levels were increased within the relevant range
Fixed costs per unit
(constant in total, but decrease per unit as production levels increase
Focus of managerial accounting
needs of the organization’s internal parties(managers) & data relevant for decision making
Activity-Based Costing
it can be used with either process or job costing
Basic assumption of ABC
Products or services require the performance of activities, and activities consume resources
Over/Underapplied OH
Overapplied OH occurs when more overhead was applied than actually occurred.
Underapplied OH occurs when less overhead was applied than was actually incurred.
ABC system, cost reduction is accomplished by identifying & eliminating:
Nonvalue-adding activities
Traditional job order cost system, the issue of indirect materials to a production department increases:
Factory overhead control
Joint Costs
- physical measures such as weights/volume
- constant gross margin percentage net realizable value, &
- sales value at split-off
FiFo & Weighted Average has how many steps involved?
Fifo = 3 Step process
Weighted Average Method = 2 Step process
Cost driver is defined as:
A casual factor that increases the total cost of a cost objective.
Cost drivers are:
Activities that cause costs to increase as the activity increases,
