Frequently Asked Questions

What are some of the benefits of good corporate governance policies?

These policies can help improve the quality of a company's financial disclosures and reports, as they place more responsibility on senior executives. This can lead to increased transparency and trust from shareholders and potential investors, which can in turn lead to more investment and growth for the company. Good corporate governance policies also limit the services that auditors can offer to a publicly traded client, making audit committees more independent. This can help to prevent conflicts of interest and ensure that audits are conducted fairly and accurately. This can also increase trust in the company's financial statements and reduce the risk of financial scandals. Furthermore, good corporate governance policies can help to ensure that senior corporate managers are held accountable for their actions. Under SOX, senior corporate managers are required to certify the accuracy of the company's financial disclosures, report financial transactions quickly, disclose off-balance sheet transactions, and take action if a lawyer reports a violation of the law. This can help to prevent financial fraud and protect the interests of shareholders.