Professional Documents
Culture Documents
Corporate Governance
Perspectives
Training Aim
To present a brief introduction to corporate
governance as the context for the internal
audit role that will give you an initial
understanding of:
1.The agency model of accountability.
2.The components of corporate
governance.
YOUR CHOICE
Corporate governance is really about:
1. The way performance is reported to
shareholders.
2.
Board of
Directors
Managers
Supervisors
Operational and Front Line
Staf
SHAREHOLDE
RS
Board of
Directors
KPIs
key performance indicators
KPIs
Managers
Supervisors
Operational and Front Line
Staf
PERFORMANC
E
Objectives
STAKEHOLDE
RS
ACCOUNTABILITY
Board of
Directors
KPIs
Policies
Strategies
Managers
Plans
Performance Review
Final Accounts
Procedures
Training &
Development
Directors Report
A/c Policies
Supervisors
Operational and Front Line
Staf
A short Task
Financial Accounts
If the accounts do not show a true
and fair view that reflects all realised
losses then dividends may be paid
out to the shareholders that
diminishes the funds that are left for
the creditors.
CONFORMANC
E
STAKEHOLDE
RS
Board of
PERFORMANC
Directors
Final Accounts
ACCOUNTABILITY
Objectives
Policies
KPIs
Directors Report
Managers
Strategies
Final Accounts
Plans
Procedures
Training &
Development
Performance Review
A/c Policies
Supervisors
A short Task
External audit
The external auditor seeks to test the
underlying transactions that form the basis
of the financial statements. In this way they
may form an opinion on whether or not
these statements show a true and fair view.
Reliance may be placed on those systems
that produce the accounts so that less
testing will be necessary where the system
is found to be sound. The systems are,
however, perceived as a short-cut to
Corporate
Governance Codes
Internal
Control Corporate Structures
Framewo
rk
Disclosure
Risk Arrangements
Internal
Managem
Controls
ent
Corporate
Strategies &
Review
Principle 9: The SEC should work with the NYSE and other
exchanges to ease the burden of proxy voting and
communication while encouraging greater participation by
individual investors in the proxy voting process.
Principle 10: The SEC and/or the NYSE should consider a wide
range of views to determine the impact of major corporate
governance reforms on corporate performance over the last
decade. The SEC and/or the NYSE should also periodically
assess the impact of major corporate governance reforms on
the promotion of sustainable, long-term corporate growth and
sustained profitability.
A short Task
STAKEHOLDE
Regs
RS
Final Accounts
External Audit
ag
e
M
an
systems of
internal control
Performance Review
Final Accounts
Supervisors
Performance Management
Operational and Front Line
Staf
Ethical Standards
COMMMITMENT AND CAPABILITY
Training &
Development
Ri
sk
Procedures
Managers
n
iti
ud
Plans
Directors Report
A
al
Strategies
KPIs
n
er
Policies
Audit Committee
t
In
m
en
Objectives
ACCOUNTABILITY
Board of
PERFORMANC
Directors
CONFORMANC
E
A/c Policies
Corp Gov Disclosures
S. I. C.
STAKEHOLDE
Regs
RS
Final Accounts
External Audit
Board of
PERFORMANC
Directors
CONFORMANC
E
Training &
Development
m
en
M
an
ag
e
Ri
sk
Procedures
Directors Report
Managers
systems of
internal control
Supervisors
ng
iti
ud
Plans
KPIs
lA
na
er
Strategies
Audit Committee
t
In
Policies
Objectives
ACCOUNTABILITY
Performance Management
Operational and Front Line
Staf
Ethical Standards
COMMMITMENT AND CAPABILITY
Performance Review
Final Accounts
A/c Policies
Corp Gov Disclosures
S. I. C.
GOVERNANCE
THE PUBLIC SECTOR VERSUS THE
PRIVATE SECTOR