Corporate Governance

(Reference:https://books.google.co.in/booksid=MamU3RJ1fqcC&printsec=frontcover#v=onepage&q&f=false)

Answer the following questions In details with clear examples:

Part 1

Q1. How does the organization chart play a role in good corporate governance? and to be a good organization chart for one's company, how it should be? provide an example of good CG chart.

Q2. "Investors are the object of corporate financial reporting. To protect these investors from financial reporting threats and enhance market confidence, all companies should focus on corporate financial reporting system to report every essential information to investors for making better decisions."

According to the above-mentioned sentences, please answer the following questions:

2.1.What do you think about the importance of corporate financial reporting with example ?

2.2. How does disclosure and transparency enhance the quality of corporate financial reporting with example?

2.3. How does three lines of defense in financial reporting ecosystem protect investors from financial reporting threats and enhance market confidence with example?

Part 2.1

Instruction: Please read this story carefully and answer the questions relating to this story and provide full examples.

Bad Genius Lin is one of excellent students who are attending to Bad Genius School with full program scholarship. In her school life, she had known one friend - Grace. Grace was not good at Mathematics, so she tried to attend extra class provided by her teacher - Tum, but it did not help anything. Grace's mother challenged her, if she got good grade on this semester, her mother would take her to travel in USA in this school break. This challenge made her very nervous! She then asked for Lin to be her tutor for final examination. Lin and Grace had prepared their final examination together. While they were taking Mathematics examination, Lin noticed that the questions on her exam were similar to the questions on assignment sheet provided by Tum. During the exam, Tum said "Mathematics was not easy, that's why I told you guys to attend my extra class. It was too late if you guys realized at this moment." Then, Lin tried to notice to Grace about this matter during the exam, and she did, but she did not remember anything about that sheet. Lin decided to write the answers into her rubber and give it to Grace. As a result, Grace got good grade on this semester. Grace told her boyfriend - Pat - about the technique to get good grade. Pat was really interested in this technique, so he requested Lin to help him and offer her 3,000 baht of incentive for each subject. Thus, Lin accepted his request. Lin opened piano class for her friends to commit fraud. She employed four songs and let her friends remember the pattern of finger movements to represent four choices on the exam. Due to this event, Kru P'Lin was created! All things must come to an end! Lin got caught by proctor. She finally consented to school director about things she had done, and she got punishment after inquiry.

Required full explanation:

Q1. Please use the fraud triangle model to describe all characters in the story .

Q2. Assume Lin is professional accountant, what ethical issues should she have?

Part 2.2

(NEWS)

SEC charges Comscore with fraud scheme to overstate revenue. The Securities and Exchange Commission has charged media measurement firm Comscore and its former CEO Serge Matta for engaging in a fraudulent scheme to overstate revenue by $50 million and by making false and misleading statements about its performance. The company and Matta entered a settlement with the SEC without admitting wrongdoing. Comscore was recently considered as a potential challenger to industry giant Nielsen in attempts to measure audiences across different platforms, including TV and digital. That accurate measurement across different platforms is considered a major challenge for advertisers. But the company has struggled recently. Its new CEO, Bryan Wiener, left in March after less than a year at the company, and was joined by president Sarah Hofstetter. Those struggles follow the Wall Street Journal reporting years ago that Comscore had a practice of recording "non-monetary revenue" for data-swapping deals with other companies, and the SEC saying it was investigating several allegations against the company. The SEC announced the charges and settlement Tuesday. It said between 2014 and 2016, the company under CEO Serge Matta "entered into non-monetary transactions for the purpose of improperly increasing its reported revenue." "The SEC's orders also find that Comscore and Matta made false and misleading public disclosures regarding the company's customer base and flagship product and that Matta lied to Comscore's internal accountants and external audit firm," the organization said in a release. "This scheme enabled Comscore to artificially exceed its analysts' consensus revenue target in seven consecutive quarters and create the illusion of smooth and steady growth in Comscore's business." Comscore and Matta agreed to settle the charges without admitting or denying the SEC's findings, the release said."Comscore and Matta agreed to cease-and-desist from future violations of the antifraud provisions of the federal securities laws and to pay penalties of $5 million and $700,000, respectively," the release said. "Matta also agreed to reimburse Comscore $2.1 million" for profits from the sale of Comscore stock and incentive-based compensation. In a statement, Comscore Chairman Brent Rosenthal characterized the settlement as resolving a "legacy issue" and interim CEO Dale Fuller said, "Comscore remains focused on its next phase of growth in order to drive profits and maximize shareholder value."

Required:

Q1. If you are chairman of audit committee, how do you deal with this matter in details steps?

Q2. Are there any other aspects of good corporate governance can help com-score to figure out this issue? what are they and how to implement them?