BEC Wiley

• 1. Base Salary and Bonuses
• 2. Stock Options.
• 3. Stock grants.
• 4. Executive perquisites (perks).

Include a combination of fixed compensation and incentive compensation that is related to long-term stock price.

• 1. Board of directors.
• 2. Internal auditors.

• 1. External auditors.
• 2. Analysts.
• 3. Credit angencies.
• 4. Attorneys.
• 5. SEC.
• 6. IRS.

• 1. Hiring and firing top management.
• 2. Voting on major operating and financial proposals.
• 3. Providing advice to management.
• 4. Ensuring accurate financial reporting by the corporation.

• 1. Nominating/corporate governance committee.
• 2. Compensation committee.
• 3. Audit committee.

• 1. Oversees board organization.
• 2. Determines director qualifications and training.
• 3. Develops corporate governance principles.
• 4. Oversees CEO succession.

A committee established by and amongst the board of directors of an issuer for the purpose of overseeing the accounting and fincial reporting process of the issuer; and audits of the financial statements of the issuer.

• 1. At least one member should be a "financial expert".
• 2. Should appoint, determine compensation of, and ovesee the work of the external auditor.
• 3. External auditor must report directly to the committee.
• 4. Internal auditor should have direct access to the committee.
• 5. Establish procedures to receive and treat complaints regarding accounting or auditing matters.
• 6. Officers are responsible of effective internal control.

• 1. Reviews and approves CEO compensation based on performance goals.
• 2. Makes recommendations to the board with respect to incentive and equity-based compensation plans.
• 3. Attempts to align incentives with shareholder objectives and risk appetite.

Committee of Sponsoring Organizations.

• 1. Control Environment.
• 2. Risk Assessment.
• 3. Control Activities.
• 4. Information and communication.
• 5. Monitoring.

• 1. Commitment to Competence.
• 2. Human resource policies and procedures.
• 3. Organizational structure.
• 4. Philosphy and Operating style of Management.
• 5. Participation of board of directors or audit committee.
• 5. Ethical and integrity values.
• 6. Responsibility and authority assignment.

• 1. Performance reviews.
• 2. Information processing.
• 3. Physical controls.
• 4. Segregation of Duties.

• 1. Authorizing.
• 2. Recording.
• 3. Custody of assets.
• 4. Comparisons (recons)

• 1. Internal environment.
• 2. Objective Setting.
• 3. Event identification.
• 4. Risk Assessment.
• 5. Risk Response.
• 6. Control activities.
• 7. Information and communication.
• 8. Monitoring

• 1. Avoidance.
• 2. Reduction.
• 3. Sharing.
• 4. Acceptance.

• 1. Risk relates to the future which is uncertain.
• 2. ERM provides information about risks of achiving objectives, but cannot provide reasonable assurance that objectives will be achieved.
• 3. ERM cannot eliminate all risks.