Handout 3.2 Flashcards
refers to the collegial body that exercises the corporate powers of all
corporations formed under the Corporation Code.
Board of Directors
refers to a system whereby shareholders, creditors and other
stakeholders of a corporation ensure that management enhances the value of the corporation as it competes in an increasingly global marketplace.
Corporate Governance
refers to a person other than an officer or employee of the corporation, its
parent or subsidiaries, or any other individual having any relationship with the corporation, which would interfere with the exercise of independent judgment in carrying out the responsibilities of a director
Independent Director
refers to any corporation with a class of equity securities listed in an Exchange or with assets in excess of Fifty Million Pesos (P50,000,000.00)
Public Company
refers to any corporation with a class of equity securities listed in an Exchange or with assets in excess of Fifty Million Pesos (P50,000,000.00)
Public Company
refers to the body given the authority to implement the policies determined by the
Board in directing the course/business activities of the corporation.
Management
refers to a director who is at the same time appointed to head a
department/unit within the corporate organization.
Executive Director
refers to a board member with non-executive functions.
Non-executive Director
refers to other services offered by the external auditor to a corporation that are not directly related and relevant to its statutory audit function.
Non-audit Work
refers to the process effected by a company’s Board of Directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the effectiveness and efficiency of operations.
Internal Control
refers to an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations.
Internal Auditing
refers to a department, division, team of consultants, or other
practitioner(s) that provide independent objective assurance
Internal Audit Department
refers to the top position within the organization responsible for internal
audit activities. In a traditional internal audit activity, this would be the internal audit director.
Chief Audit Executive
refers to that environment which allows the person to carry out his/her work freely and objectively.
Independence
refers to unbiased mental attitude that requires the person to carry out his/her work in such a manner that he/she has an honest belief in his/her work product and that no significant quality compromises are made.
Objectivity
