3- Audit, corporate governance and sustainability reporting Flashcards
What is corporate governance?
Corporate governance refers to the processes and company structures used to control companies and make them function effectively
What are 4 key board committees?
- Audit committee
- Remuneration committee
- Nomination committee
- Non-executive directors’ committee
What is a financial audit?
When an independent accountant gives an opinion on the financial accounts of a company as to whether they present a true and fair view
What is the agency problem of shirking?
The tendency to want to avoid work and push it on to others
What are 5 commonly cited best practices for corporate governance?
- Strong and qualified board of directors
- Evaluating performance and trying it to compensation
- Define roles clearly and thoroughly
- Emphasize integrity as a core value of the firm
- Strong risk management controls
What are the 2 types of accounting for sustainability?
- Sustainability accounting
- Sustainability reporting
What is sustainability reporting?
Reports to external stakeholders about how managers have discharged ethical responsibilities
What are the 4 stages of sustainability reporting?
- Why report?
- Who should the report be directed to?
- What issues should be addressed?
- How the report should be compiled?
