Final answer:
The board of directors, the auditing firm, and outside investors are key players in monitoring and certifying the financial reporting process. Government agencies such as the Office of the Comptroller of the Currency and the National Credit Union Administration also supervise the banking sector.
Step-by-step explanation:
The entities that serve a monitoring and certification role in the financial reporting process include the board of directors, the auditing firm, and outside investors. The board of directors, which is elected by shareholders, acts as the primary body for corporate oversight. Meanwhile, auditing firms are employed by the company to scrutinize financial records and affirm their accuracy. Additionally, outside investors, particularly large stakeholders such as mutual fund and pension fund investors, also play a role in corporate governance. However, these mechanisms can sometimes fail, as evidenced by the case of Lehman Brothers, where corporate governance did not provide reliable financial information to its investors.
Moreover, within the banking sector, institutions such as the Office of the Comptroller of the Currency and the National Credit Union Administration (NCUA) serve to supervise banks and credit unions, respectively. They ensure these financial institutions maintain a positive net worth and manage risk appropriately by conducting on-site reviews and monitoring balance sheets.