3- Audit, corporate governance and sustainability reporting Flashcards
(8 cards)
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?
