Glossary

is one of the core principles in Internal Control. It should prevent that some people enrich at cost of the company and that substantial risks remain undetected. Separation of duties in banks leads to separation of trading, administration and accounting as well as accounting and risk management. Strictly spoken it is forbidden to concentrate acting, accounting and administering in one hand.

Sarbanes Oxley Act fundamental American law from 2002 which strengthen corporate governance worldwide.

is a midterm three to five year focussing of all forces, capital and human resources , to the objectives, the financial and non financial ones`.

consists of different components as objective, tasks for accomplishing, resources (human and capital), assimilate external phenomena (body or informatically), target orientated processing and generating of products or workload, controlled by decision rules and feedback mechanism during the activities, the processes.

abstract electronic structures, for examples blanks on paper.

defines the cap and bottom of a desired range for a target.

U.K. initiative of British chartered accountants (1999) for strengthens corporate governance, in the meantime substituted and required by the UK regulator, the FRC.

fundamental credo within a company/ organisational unit which are binding for all members of the unit independent of the status of a specific reality and are sanctioned when not followed.

pioneer enterprises who’s financing is established by selling stocks to private investors (private equity). Private equity enterprises try to reduce their risks in loosing their investments through distributing their capital in various companies. Private equity companies are more interested in high value added than banks. Realisations of the profits is mostly done by IPO`s (Initial Public Offering). The profit is the difference between the capital formerly invested and the capital from selling the shares. Without a IPO the venture capital investor must face a total loss of his investment.

future orientated abstract ideal of that what a an enterprise will accomplish.

is a detailed personal visual inspection of all data of the company relevant for external reporting done by the external auditor starting from recording, agreement, booking and processing to the balance sheet.

a protection for people who inform a company about illegal practises established by SOX and a binding requirements for Audit Committees to analyse the hints and to initiate adequate actions.