REVIEW CHAPTER 8 :CORPORATE GOVERNANCE (PSP_DAT5CJune2020)
GROUP 8 :CORPORATE GOVERNANCE
We are from group 8 and will dicuss about Chapter 8 :Corporate Governance in Audit and Assurance.
Group members:
1.SELVARANI A/P MURUGAYA
(10DAT18F1034)
2. CHEN QIAO XIN
(10DAT18F1070 )
3.NOOR FATIMAH BT SHAHABAN ALI
(10DAT18F1107)
4.VELASINI A/P KURINJI KUMARAN
(10DAT18F1111)
5.NUR SYAFIQAH BT KADERSAH
(10DAT18F1121)
INTRODUCTION :
Corporate governance is the system by which organisations are directed and controlled. It encompasses the relationship between the board of directors, shareholders and other stakeholders, and the effects on corporate strategy and performance. Corporate governance is important because it looks at how these decision makers act, how they can or should be monitored, and how they can be held to account for their decisions and actions.
The published audited financial statements and related information are therefore of key importance. They will usually be the main information set to which shareholders and other stakeholders have access and this is why having credible financial statements supported by the auditor’s opinion is crucial.
Please refer to the Conceptboard we have prepared for you:
For more detailed information, you can click these three urls and watch them on youtube 😊:
Question :
Group 1:State the importance of State governance.
Group 2:What is the necessity for good governance?
Group 3:State the main pillars of corporate governance.
Group 4:State the elements of corporate governance.
Group 5:What is the structure of audit committee?
Group 6:What is the roles of audit committee?
Group 7:State the advantages of having an audit committee.
*You can find the answers from our conceptboard. GOODLUCK😁
THANK YOU GUYS❤️
Comments
Under the new design, the role of the state government is to promote the state economy and to take operational control over most government programs for individuals, such as social programs and risk management. Thus the state governments would face more difficult problems than currently.
1.Good board practice
2.Disclosure and transparency
3.Legal compliance
4.Shareholder rights
5.Control environment
1) Establish clear roles and responsibilities
2) Strengthen composition
3) Reinforce independence
4) Foster commitment
5) Uphold integrity in financial reporting
6) Recognize and manage risks
7) Ensure timely and high-quality disclosure
8) Strengthen relationship between a company and its shareholders
1)Assisting the board to discharge its responsibility to exercise due care, diligence and skill in relation to the following areas:
2)Reporting of financial information to users of financial reports
3)Application of accounting policies
5)Financial management
4)Internal control system
5)Risk management system
6)Business policies and practices
7)Protection of an entity’s assets
Structure of an Audit Committee
1. The Companies Act 2016 requires the appointment of an audit committee by the shareholders at every annual general meeting.
2. The audit committee members' composition must comprise at least three company (member of the board) who are not:
(i) involved in the daily management of the company
(ii) full-time employees of the company for the past three years
(iii) material suppliers or customers (business relationship)
(iv) related to anybody who falls within these criteria
• It may improve the quality of management accounting, as it is well placed to criticise internal functions.
• It should lead to better communication between the directors, external auditors and management.