Others mechanism

Question 1

wich other mechanis there are for the control of

Answer 1

audit
Media
takeovers
- othe forms of external mechanism( analysts

Question 2

what are the reposnabilities od audit and how it can improev coorporate governance ?

Answer 2

• this mechanism helps by reducing informantion assymetry and tranperancy
• audit commties , external and internal auditing

Question 3

What should audit for general profession and for commities?

Answer 3

regulation should inprom:
– More demanding admission requirements
– Strong internal quality control mechanisms
– More emphasis on independence
– Rotation´
Comitties:
-include mainly non executive
- have a good finacial background
Approve the appointment of the auditors
– Approve all non-audit services provided by the auditors
– Review earnings releases and management’s presentations to analysts

Question 4

Problem woth auditing?

Answer 4

• cherry picking
• Idependence
• auditing vs consulting
• Imcreasing complexity

Question 5

How the Media afects as a corporate contorl mechanism

Answer 5

• help scrutinize Buiness
• May force or induce change to bad practices or less accepted pratices
• Whistleblower ( increases tranperancy

Question 6

Take overs control

Answer 6

• Related to the market mechanism ( bad managed companies can be a target of a an acqusition)
• The aquision can lead to the Managment team to be re selected
• meger can do teh same by due deligenci