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My understanding is:
The company doesn't communicate with you. Large companies, such as the Big 4 accounting firms, generally outsource to background check research companies. From what I understand, these research companies do a bunch of online research and call up places, like your former employers you put down, and verify you worked from this date to that date. They aren't collecting opinions or recommendations or anything, they just verify job history information you provided to the potential employer.
Degrees, institution, GPA and distinctions are all up for grabs. Periphral things like extracurricular activities I doubt would ever be touched on a background check. I don't know about disciplinary actions with the university internally, but they do a criminal background check for misdemeanor and felony convictions.
Some states have special laws you may want to research. For example, a few states have a "7-year" rule where the background check will only search/find convictions from the past 7 years.
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I was under the impression that schools couldn't release displinary matters to employers. I believe they can only inculde GPA, Major, and when you graduated.
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