Effective and ethical corporate governance among public and private companies has become an ongoing concern with far-reaching consequences. Boards are expected to perform their fiduciary duties with utmost care and attention to detail, while adhering to efficient corporate reporting processes. Good corporate governance is characterized, in a broader sense, around topics involving director independence, time investment in board duties, relevant information assessment and demonstration of familiarity with the business. This is combined with monitoring and overseeing management’s role in running the daily activity of the enterprise.
The Sarbanes-Oxley Act, the Public Accounting Oversight Board, and the stock exchanges have further defined the CEO, CFO and director’s roles and responsibilities in regards to financial reporting and related matters involving good corporate governance.