Bank of America- Compliance

Bank of America

As a financial institute, “Bank of America strives to uphold the highest standards of corporate governance and ethical conduc”t (Bank of America, 2010, para. 1). Their board of directors provides oversight of the company’s affairs and constantly works to improve and build on the company’s corporate governance practices (Bank of America, 2010). As outlined by Bank of America, “Our management process, structures and policies help ensure compliance with laws and regulations and provide clear lines of sight for decisions-making and accountability” (Bank of America, 2010, para. 4).

According to Bank of America, in their effort to stay in compliance with SEC and SOC regulations, Bank of America has composed six committees; audit, compensation and benefits, corporate governance, credit, enterprise risk, and executive (Notice of 2010 Annual Meeting of Stockholders). Each committee holds a specific purpose in maintaining strong governance and compliance regulations. Of the regulations implemented by the SEC and SOX audit committee are mandatory that Bank of America uses in exercising oversight of the effectiveness of the company’s system of internal controls and policies and procedures for managing and assessing risk, the integrity of the consolidating financial statements of the company, and the compliance by the company with legal and regulatory requirements (Bank of America, 2010). “In addition, the Committee prepares the report that the Securities and Exchange Commission (“SEC”) rules required by included in the Company’s annual proxy statement” (Bank of America, 2010, p. 1).

In conjunction with their Enterprise Risk Committee, their audit committees responsibility to stay in compliance with legal and governing requirements and company policies consist of, “discussing with management the results of the corporate audit examination activities and overseeing and assessing the company’s policies and procedures for managing and evaluating risk through...