Answer to Question 1
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Answer to Question 2
Answer: Corporate governance is the system used to govern a corporation so that the interests of corporate owners are protected. In response to several recent business scandals, two areas in which corporate governance is being reformed are the role of boards of directors and financial reporting. The cozy, quid pro quo composition of corporate boards, where board members are frequently peers of other corporations, is changing considerably. The Sarbanes-Oxley Act of 2002, puts greater demands on board members of publicly traded companies in the United States to do what they were empowered and expected to do. To help boards do their job better, researchers at the Corporate Governance Center at Kennesaw State University developed 10 governance principles for U.S. public companies that have been endorsed by the Institute of Internal Auditors. In addition to expanding the role of boards of directors, the Sarbanes-Oxley Act also called for more disclosure and transparency of corporate financial information. In fact, senior managers in the United States are now required to certify their companies' financial results. These types of changes should lead to better information that is, information that is more accurate and reflective of the firm's financial condition. In fulfilling their financial reporting responsibilities, managers might also want to follow the 15 principles developed by the researchers at the Corporate Governance Center at Kennesaw State University.
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Data management short answer q