Operating like the Internal Affairs unit in a police department, the audit department is a division within a company's financial hierarchy tasked with making sure that the firm's financial results truly match what's going on. The department enacts procedures to make sure accounting gets done according to proper procedures. It also conducts periodic audits to make sure everything remains above board.
The audit department is separate from the independent auditors who periodically come in to look over a company's financial results. If the audit department is the PD's Internal Affairs division, then the outside auditors are the city councilmen who sometimes go with a couple officers on a ride along.
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Finance: What is non-voting stock?4 Views
finance a la shmoop- what is non-voting stock? hmm well it's stock that doesn't
vote. bet you're shocked to hear that. most people need a PhD in finance to [stock wears an "I didn't vote" sticker.
understand that notion. but really that's it in most cases common stock carries
with it the right to vote. and in fact it's the common shareholders who elect
the board of directors. but every now and then a potentially hostile investor
comes along and buys or wants to buy a big chunk of stock in a company. well the
amount might be a block large enough to elect that potentially hostile investor
slate or the group of people that investor wants to place on the board to
represent her evil intentions .when that happens companies will often create a
class of common stock similar in every way to its normal common only with its [stock checklist of privileges listed]
voting rights stripped away .that way the investor can own an economic interest in
the company but not monkey with the board.
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