Case Study: Verizon's Board Of Directors

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Verizon’s Board of Directors oversees all auditing activities and they implement the code of ethics for all financial officers. Verizon has at least three members for their Audit Committee, which includes independent Directors who need to be financially literate. Also, the Committee Chair must have accounting or financial management expertise and at least one member of the committee must be a financial expert. The Board of Directors will choose the Committee members by their qualifications and are appointed annually by the Board of Directors. The purpose of the Ethics Audit Committee is to assist the Board of Directors in monitoring the integrity of the Verizon’s accounting and financial reporting and its internal controls, the performance…show more content…
The most important of these for Verizon is to have a better relationship with their stakeholders because they are so important in the daily success of the company. Without the employees and customers, etc., Verizon couldn’t run its daily business. The next important benefit is for Verizon to protect against any legal issues. With annual audits, Verizon can keep an eye on their business practices and the people handing them to avoid and criminal charges. The least important of these would be the reduced punishment if they are found guilty of a criminal charge because this would only happen if they didn’t have an ethics audit and were found guilty which wouldn’t be as likely to happen. Three risks of an ethics audit are that the audit could bring to light a problem that the company doesn't want others to know about and something brought up in the audit could create dissatisfaction from a stakeholder, running these audits can be a financial burden and even if there are issues brought up in the audit, that doesn't mean they will be addressed because some issues can't be avoided. The most important of these risks is that a problem could be recognized that Verizon doesn’t want others to know about because this could cause Verizon to be considered as a corrupt company. The next important risk would be if something came up in the audit that a stakeholder didn’t like because this could cause a bad relationship with an important person that helps keep Verizon running smoothly daily. The least important risk would be the financial cost to run the audit because the ramifications of unethical behavior
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