Environmental Factors Corporate Governance Board of directors oversight e Audit committee of the board oversee accounting process oversee internal control oversea internallexternal audit ● nterna| Auditor
Environmental Factors Corporate Governance • Set by International Accounting Standards Board • Not currently accepted in U.S. • SEC under pressure to accept IAS • Board of directors oversight • Audit committee of the board - oversee accounting process - oversee internal control - oversea internal/external audit • Internal Auditor
Environmental Factors Internal Users External Users Managers Lenders Officers Shareholders Internal Auditors Governments Sales Managers Labor unions Budget Officers External Auditors Controller Customers
Environmental Factors Internal Users External Users Managers Officers Internal Auditors Sales Managers Budget Officers Controller Lenders Shareholders Governments Labor Unions External Auditors Customers
Environmental Factors Equity Investors o Active Speculative Investors rely on financial reports Creditors Solvency Liquidity analysis relies on financial reports
Environmental Factors Creditors Equity Investors • Active & Speculative Investors rely on financial reports • Solvency & Liquidity analysis relies on financial reports