CHAPTER 8 : CORPORATE GOVERNANCE
CHAPTER 8 : CORPORATE GOVERNANCE
Group 8
1) SALEHAH BINTI ABDUL SHUKOR (10DAT18F2025)
2) NUR NAZIRAH BINTI MOHAMMAD HUSNI (10DAT18F2043)
3) NURUL BADRI BINTI AHMAD FADZIL (10DAT18F2066)
4) NURUL NADHIRAH BINTI NAJIMUDDIN (10DAT18F2070)
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.
Define corporate governance :
Corporate governance is the system by which companies are directed and controlled. Boards of directors are responsible for the governance
of their companies. The shareholders' role in governance is to appoint
the directors and the auditors and to satisfy themselves that an
appropriate governance structure is in place.
Elements of effective corporate :
- accountability
- transparency
- regulatory framework
- business ethics social responsibility
- administrative structures
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Question
Group 1 : What is the definition of corporate governance?
Group 2 : List down the core principles of Malaysian Code on Corporate Governance 2012.
Group 3 : What are the elements of Corporate Governance?
Group 4 : Give the roles of an audit committee.
Group 5 : List two things that the chairman of an audit committee should ensure.
Group 6 : Give three main advantages of having an audit committee.
Group 7 : Explain the disadvantages of an audit committee.
Comments
definition : Corporate governance is the system of rules, practices and processes by which a company is directed and controlled. Corporated Governance refer to the way in which companies are governed and to what purpose. It identifies who has power and accountability, and who makes desicions
role for the audit committee chair is to ensure that all committee members understand the critical risks to the business – risks to its strategy, its business model or its survival. ... - Meet with the leaders of the various lines of business in an effort to understand their strategies and the associated risks.
Oversight of financial reporting
Risk management
Internal control
Compliance
Ethnic
Management
Internal audit
Disadvantages of Audit Committee
The first disadvantages of having the audit committee are incurring the high costs to the entity. Most of the audit committee members are the senior person and no matter what kind of method we use to provide the benefit to them, it is still expensive.
1)Provide actionable insights to oversee and improve financial practices and reporting.
2)Create and maintain effective anti-fraud programs
3)Enhance the internal audit function